What role does your profession play in dictating your car insurance rates? Let's dive into the data.
Car insurance costs are incredibly specific. Your rates reflect the potential risk you and your vehicle pose to an insurance company. Your profession is one of the many rating factors that comprise the "you" portion of your car insurance costs when it comes to quotes. Insurance companies do this for two reasons.
1. Some car insurance companies associate certain professions with less-risky behavior.
Historical data shows drivers with higher levels of educational attainment are less likely to take risks on the road. But this isn’t specific to education levels only. Data also shows drivers in certain occupations tend to file fewer claims and receive fewer tickets or citations. Insurance companies reward these tendencies with lower premiums.
2. Some professional organizations work with insurance companies to secure favorable rates.
Some insurance companies partner with organizations in order to increase their customer base. Geico often does this, for example. If you’re a member of an occupational organization or professional society, you may receive a discount. Let’s look at the professions with the best insurance rates.
Nurses, EMT/paramedics, first responders, doctors, and pharmacists all fall under the umbrella of medical professionals. Certain insurance companies offer lower premiums based on their risk assessments, while others will offer a discount based on membership in healthcare professional organizations. Select your medical profession below for specific details.
Military personnel earn one of the more impactful profession-based auto insurance discounts. Having served or actively serving in any of the US military branches provides an average car insurance discount of nearly 12%. For specific details on discounts by individual branch, see the below links.
Police officers, the professionals responsible for furnishing the traffic tickets that impact your car insurance premium, are seen as pretty good clients by car insurance companies. As such, police are rewarded with lower insurance premiums.
The unsung heroes of the world, teachers, often receive car insurance discounts. While we’d like to think insurance companies are rewarding teachers for doing vital and socially beneficial work, the discount is derived from the data: teachers, plain and simple, are often just good drivers.
There are two ways to receive a profession-based car insurance discount. The first way is through the underwriting process, in which your occupation is rated based on historical data. If historical data shows drivers in your profession are less likely to file claims or drive recklessly, you could get a small discount. The second way to get an occupational discount is via membership in a professional organization. This can be an alumni group, union, or society. These organizations often partner with insurance companies to offer discounts.
Note: New York state does not allow companies to use occupation as a rating factor for car insurance.