While you fight the common cold, we'll fight for better discounts for you.
While your occupation isn't directly connected to your insurance premium, it does have an impact. On average, those who have completed an MD/PhD education program pay less for car insurance than those who have not — while maintaining all other variables constant. Insurance companies see people with higher levels of education as less risky drivers — thus making them a less expensive client. Still, car insurance isn't a $220 billion industry because it's cheap. So, let's explore some ways to save on auto insurance as a doctor.
There is a lot of misinformation regarding why certain occupations pay less for auto insurance. First and foremost, insurance companies do not use your income to determine what you pay. So, just because doctors typically make more than your average person, insurance companies don't hike up the price just for them.
What many companies do, however, is view driving patterns through the filter of education level to predict what kind of customer you could be for them. Basically, they see drivers with more education as less likely to take risks when driving. And, to an insurance company, less risk equates to fewer claims payouts for them.
National Average Annual Auto Insurance Premiums by Level of Education
As you can see, those with higher levels of education such as engineers, doctors, lawyers, and PhD scientists, pay less than certain occupations that require less education.
As insurance is regulated on a state basis, not every company will offer you a discount based on your occupation. Still, here are some popular companies that offer it.
At the end of the day, insurance is expensive regardless of what you do for a living. Even though doctors are well compensated for your work, saving money is saving money. Here are some suggestions on how to save.
If you’re able to pay your premium up front, you can save $61 a year! You can also save $27/year by paying directly with your bank account.
Savings Based on Method of Payment
|Savings with Paid in Full||Savings with EFT|
By keeping it in the family, i.e., keeping all your insurance policies with the same company, you could earn a multi-policy discount. The more policies you bundle with your company, the more you could save!
Savings on Bundlings
|Savings with Renters||Savings with Home|
Having at-fault accidents, claims, or other violations on your driving record can seriously hurt your insurance premium. As a general rule, most claims will impact your insurance rate for 3 years and could impact your ability to qualify for other discounts and coverage options. Driving safe will ensure your rate remains as low as possible.
Average Increase in Annual Premium in 2016
|Accident/Violation||6 Month Premium Increase|
|Speeding 11 - 15 MPH Over Limit||$141|
|Speeding 16 - 20 MPH Over Limit||$153|
|Speeding 21 - 25 MPH Over Limit||$165|
By this, we are referring to the sad truth that cars depreciate over time. So, if you have an older vehicle, it might not require the same coverage that a newer vehicle would — specifically referring to comprehensive and collision insurance. Here are some easy steps to consider when thinking about your coverage options.
The use of telematics is a growing trend in insurance technology. Basically, telematics are plug-in devices that monitor the way you drive to generate a more accurate premium. Rather than using data that isn’t always reflective of how you drive, telematics can accurately tell your insurance company what kind of client you will be for them, thereby accurately determining your premium. Here are some potential savings.
|Progressive's SnapShot||Average of $130|
|Allstate's Drivewise||Average of 10-25%|
|State Farm's Drive Safe & Save||Up to 15%|
|Nationwide's SmartRide||Up to 40%|
|Liberty Mutual's RightTrack||Average of 5-30%|
Be aware: these programs are not available in every state.
You could do all of the above and still be paying too much for car insurance simply because you’re with the wrong company. Only with The Zebra can you shop hundreds of different discounts at once to see the cheapest rate. Get started today.
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