You are probably aware of the fact that insurance companies factor in many different things when they calculate quotes for auto insurance premiums, but you might not realize that your occupation may be affecting the amount you pay. Here are a few important things to understand about the way occupations affect insurance rates.
Insurance rates are based on risk levels
When a person requests a quote for auto insurance, the insurance agent's job is to determine the risk level of the person, and risk levels are based on many different things. People who are considered low-risk drivers are less likely to file claims, and this results in lower premiums. People who are high-risk drivers will pay more for their insurance, simply because their chances of filing a claim are much higher.
Insurance companies also base risk levels on age, gender, location, driving record, type of vehicle, and marital status. In addition to basing premiums on risk, insurance companies also base quotes on the type of vehicle a person has, the mileage he or she drives, and the types and amounts of coverage on the vehicle.
Certain jobs are viewed as high-risk occupations
One of the ways insurance companies determine a person's risk level is by looking at his or her occupation. Based on statistical information, people with certain types of jobs are more likely to get in accidents and file claims, while people with other types of jobs are less likely to file claims.
Some of the jobs that are considered high-risk occupations include lawyers, doctors, salespeople, and real estate brokers. These jobs often have high levels of stress, and the work environments are often hectic and chaotic. Because of this, people with these occupations may pay higher rates for their car insurance premiums.
Other jobs are viewed as low-risk occupations
On the other hand, occupations that are viewed as low-risk jobs can include pilots, nurses, scientists, and teachers. People who work in these professions are often less risky when it comes to driving. They are often better at paying attention when driving, and they are not typically in a hurry like people are who work as doctors or real estate agents.
The job you have is probably not something you plan on changing, especially for an insurance discount; however, it is important to understand that occupations can affect rates. If you feel you are paying too much for your auto insurance rates, contact an insurance company and ask for a free quote.
Speak to an agency like Kesner Insurance Agency Inc to learn more.