It’s an engineer’s job to create real life solutions to real world problems.
Since there are so many different industries and applications that need solutions, there are multiple branches in the field that include:
- even geotechnical
All engineers, no matter the specialty, need to have a robust insurance portfolio.
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If you work in a field like mechanical engineering, you could take part in designing mechanical systems that are used in modern vehicles.
No matter how experienced you are in materials science and structural analysis, that doesn’t make you an expert in risk management when you own a car. Before you buy your next car make sure you get help buying insurance. Here’s a guide on car insurance for engineers:
Does your occupation matter when you’re buying insurance?
If you’re buying home insurance, your occupation won’t be factored into rating the policy unless you have a home-based business. It works a bit differently when you’re buying car insurance.
Car insurance providers can’t base an applicant’s rate on the fact that they’re unemployed and they can’t deny them for working in a specific field, but your job can affect your rates.
Your occupation is a factor that’s going to be used in auto insurance rating. As long as you live in a state where assigning an occupational class is considered a fair practice, you can expect what you do for a living to have some sort of influence on your rates.
Insurers will look at claims data from drivers in your field to see how they stack up compared to drivers in other lines of work.
If you’re sitting here stumped as to why it matters what you do, you have to understand how risk assessment works. You may not be driving your personal car to go on business runs, but that doesn’t mean that your profession can’t impact how you drive on a daily basis.
Some of the reasons that occupation contributes to risk includes:
- The average age of professionals in the field
- The average income of professionals in the field (professionals who earn more often pay for their own claims)
- The level of stress that professionals in the field work under
- Whether or not professionals in the field work on-call
- The most common hours that professionals in the field work and what time they commute
- Type of setting and area that professionals in the field work (ex: suburbs, rural towns, or metropolitan areas)
What risk class will engineers fall into?
You never want to pay a high-risk occupational rate just because some of your fellow colleagues aren’t the safest drivers. It can be frustrating but, since insurance is all about pooling risk, it’s a common practice that most insurers will use.
Luckily for you, engineers as a whole are some of the safer drivers.
Engineers fall into a low-risk occupation class so they will pay lower rates than other professionals. It could be the fact that engineers are problem-solvers and forward-thinkers, or the fact that they work business hours under an average level of stress.
Whatever it is, you’ll benefit from the favorable rating.
Does your level of educational attainment matter?
A lot of variables go into the pricing of auto insurance. It’s not just your occupation that’s used to evaluate risk, but also your level of educational attainment. Drivers who have completed a higher level of education are believed to fall into a lower-risk profile.
As an engineer, you know you can’t just complete two years of studies and call it a day. You must go to school at least four years to earn a Bachelor’s degree from a school accredited by the Accreditation Board for Engineering and Technology.
Once you hold that degree, you can pursue the necessary licensing in your state.
Spending a minimum of four years in school will get you ready to enter the workforce, but it will also qualify you for low insurance rates. Since education is a variable that is believed to influence a person’s risk profile, having your four-year degree can save you money.
If you go on to pursue an advanced degree, you may qualify for more credits.
Choosing the Right Level of Protection
Choosing the right level of protection on your car insurance is always important no matter what you do for a living.
Professionals who are licensed to work in a specific field have even more responsibilities because they have to keep a good professional and financial reputation. Believe it or not, but going bankrupt can affect your eligibility for a professional license.
One of the areas that you should put your focus on initially is choosing the right level of liability protection. This is the coverage that pays for someone else’s medical bills, their lost income, and their pain and suffering claims.
It’s also what pays to repair public property, homes, and vehicles that you damage in your car. Experts recommend carrying:
- $100,000 per person to pay for bodily injury
- $300,000 per accident to pay for multiple bodily injury claims
- $100,000 per accident to pay for property damage to other property
Consider Adding Optional Protection
You should also contemplate adding more protection that’s considered optional. The optional forms of coverage will pay for your own damages and financial losses when you suffer an accident or another type of auto-related loss.
Some of the options that you can choose from include:
- Medical Payments
- Uninsured Motorist Protection
- Rental Car
- Car Replacement/GAP
A study released by USA Today announced that over a lifetime, engineering majors will make an average of $3.5 million in their lifetime.
Even though you’re at the upper end of the spectrum compared to other majors, that doesn’t mean you want to spend a fortune on your auto insurance. If you want to save money, the best thing to do is shop around.
Use our online rate comparison tool and you can find the best deals in minutes.