Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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UPDATED: Sep 24, 2021

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Here's what you need to know...

  • Your job does affect your insurance rates.
  • Different insurance companies use different metrics to determine risk factors.
  • A comparison tool can help you determine if you’re being overcharged for your car insurance.

Several factors impact your insurance rates, and what you do for a living is only one of them. But do car insurance companies check your employment? When companies calculate your accident risk factors, they take into consideration everything from where you work to your credit score.

Do car insurance companies check work history? No. They do check your employment, but they don’t check your work history. It’s current employment status affects what you pay. Providers only care about your current job and job title, and they only use it for the purposes of determining your overall risk for getting into a car accident.

Fortunately, every company is different. They all handle claims differently, use a different formula to calculate the accident risk of policyholders, and more, which means shopping around can help you find an affordable policy. Because there are so many coverage options you’ll want to make sure you’re taking advantage of the competitive rates that are out there.

We’ve provided the information you need about your job and how it correlates to what you pay for your policy. You have more than one option, and if you’re interested in lower annual rates, you can always shop around. Affordable car insurance doesn’t have to be impossible to find — compare car insurance rates now by using our FREE tool above.

Does your job affect what you pay for coverage?

What you do for a living can affect what you pay to insure your vehicle. Unfortunately, the exact jobs that increase rates depend on who you’re asking. However, it’s important to make sure you don’t list the wrong job, no matter where you work, on your car insurance policy forms.

U.S. News reports that teachers and engineers pay less for car insurance than people who own their own businesses and lawyers. Kiplinger states that blue-collar workers receive the worst rates, while executives’ rates are lower. The cheapest employment status for car insurance can depend on where you live and other factors.

Thankfully, your occupation is only one factor that affects your insurance rates. How do you calculate car insurance? Different companies use different metrics to determine risk factors for their policies. If you think you’re being overcharged by your current provider, you can quickly compare the rates of other companies and auto policies by using a comparison tool.

  • Being employed at a certain job or in a certain occupation can increase or decrease your rates.
  • Many factors are used to determine your risk of getting into an accident.
  • A comparison tool can help you view the prices and policies of other companies so you can see if you’re being overcharged.

Employment status affects your rates, but it isn’t the only factor companies consider. Far from it, in fact! Being involved in an accident is another thing that affects rates, but don’t think hiding your crash is a good idea; there are different ways your car insurance company can find out about your car accident. Read on for information on the other factors that affect rates. 

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Will your location, marital status, and other factors affect what you pay?

One of the primary factors that affects your car insurance rates is where you live. Individuals that live in large cities tend to pay more than those who live in rural areas, but your rates can even fluctuate based on your exact location in your city. Business Insider notes that if you live in ZIP code 48240, you’ll pay 106 percent less than if you live in ZIP code 48227. The same is true for various locations in New Orleans. Individuals who live in ZIP code 90045 pay an average of 47 percent less than those in ZIP code 90005, when all other factors are the same.

  • Your marital status can negatively or positively affect what your rates will be.

According to Consumer Affairs, singles, widows, and married people who are separated pay more for car insurance than individuals who are married. It’s estimated that when a woman’s husband dies, she could see as much as a twenty percent increase in the annual cost of her insurance premium.

  • Your driving record, the type of car you drive, and your driving habits will affect the cost of your premium.

Sports cars or high-powered cars will cost more to insure than modest vehicles, but the age of the car, its safety features, and its likelihood of being stolen will also affect your insurance rates. If you’re in the market for a new car, you might want to get quotes via a comparison tool to determine how much your potential new car will cost you each month for coverage.

  • Individuals who drive more are subject to higher insurance premiums.

The reasoning for this is simple. If you drive a lot of miles or have a long commute to work, you’ll spend more time on the road, which increases your chances of getting into a car accident.

  • The number of accidents, incidents, and traffic tickets will affect the cost of your insurance policy.

Will multiple tickets increase car insurance rates? Yes, your liability record is taken very seriously. If you’ve been in one or more car accidents or gotten several tickets for moving violations, you’ll be considered a higher risk than someone who has remained accident and infraction-free over the last several years. Causing bodily injury to other drivers, and even having property damages listed on your record, can hike up what you pay, so it’s better to drive safe and smart.

Easily compare rates in your area by entering your ZIP code in our comparison tool.

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Are there ways you can save money?

Most, if not all, car insurance companies offer discounts as a way to lower your premium, but it’s up to you to ask about any potential discounts that could save you money. The most common discounts include multi-policy discounts for having multiple policies with the same company sometimes referred to as a bundle discount, good student discounts, and discounts for owning a car with certain safety features, like ABS brakes and passenger-side airbags. Some providers even offer a discount if you set up automatic payments. Ask about a student discount if you’re in school or have a child under your policy who is currently attending.

If you’re already receiving all the additional discounts that are applicable, you can raise your deductible if you have full coverage car insurance, or you can lower your coverage amounts.

A list of discounts offered by different companies can be seen in the chart below.

Car Insurance Discounts Available by Company

Discounts21st CenturyAAAAllstateAmerican FamilyAmeripriseAmicaCountry FinancialEsuranceFarmersGeicoLiberty MutualMetLifeNationwideProgressiveSafe AutoSafecoState FarmThe GeneralThe HanoverThe HartfordTravelersUSAA
Adaptive Cruise Controlxxxx
Adaptive Headlightsxxxxxxxx
Anti-lock Brakesxxxxxxxxxxxxxxxxxxxxxx
Anti-Theftxxxxxxxxxxxxxxxxxxxxxx
Claim Freexxxxxxxxxxxxxxxxxxxxxx
Continuous Coveragexxxxxxxxxxxxxxx
Daytime Running Lightsxxxxxxxxxxxxxxxxxx
Defensive Driverxxxxxxxxxxxxxxxxxxxxxx
Distant Studentxxxxxxxxxxxxxxx
Driver's Edxxxxxxxxxxxxxxxxxxxx
Driving Device/Appxxxxxxxxxxxxxx
Early Signingxxxxxxxxxxxxxx
Electronic Stability Controlxxxxxxxxx
Emergency Deploymentx
Engaged Couplex
Family Legacyxxxxxx
Family Planxxxxx
Farm Vehiclexxxx
Fast 5x
Federal Employeexxxx
Forward Collision Warningxxxxxxx
Full Paymentxxxxxxxxxxxxxxxxx
Further Educationxxxxxxxxx
Garaging/Storingxxxxxx
Good Creditxxxx
Good Studentxxxxxxxxxxxxxxxxxxxxxx
Green Vehiclexxxxxxx
Homeownerxxxxxxxxxxxxxxxxxx
Lane Departure Warningxxxx
Life Insurancexx
Low Mileagexxxxxxxxxxxxxxxxxxx
Loyaltyxxxxxxxxxxxx
Marriedxxxxxxxxxxxxxx
Membership/Groupxxxxxxxxxxx
Militaryxxxxxxxxxxx
Military Garagingx
Multiple Driversxx
Multiple Policiesxxxxxxxxxxxxxxxxxxxxx
Multiple Vehiclesxxxxxxxxxxxxxxxxxxxxx
New Addressx
New Customer/New Planxxx
New Graduatex
Newer Vehiclexxxxxxxxxxxxxxxx
Newly Licensedx
Newlywedsx
Non-Smoker/Non-Drinkerx
Occasional Operatorx
Occupationxxxxxxxxxxxx
On Time Paymentsxxxx
Online Shopperxx
Paperless Documentsxxxxxxxx
Paperless/Auto Billingxxxxxxxxxxxxxxxxx
Passive Restraintxxxxxxxxxxxxxxxxxxxxxx
Recent Retireesxx
Renterxxx
Roadside Assistancexx
Safe Driverxxxxxxxxxxxxxxxxxxx
Seat Belt Usex
Senior Driverxxxxxxxxx
Stable Residencexxxx
Students & Alumnixxxxxx
Switching Providerxxxxxxxxxxx
Utility Vehiclexxxx
Vehicle Recoveryxxxxxxxxxxxxxxxxxxxxx
VIN Etchingxxxxxxxxxx
Volunteerx
Young Driverxxxxxx
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As you can see, there’s a variety of different discounts available, depending on your insurance company.

If these still don’t lower your premium to acceptable levels, you can use a comparison tool to quickly compare the rates of other policies with different carriers. There are also a few other ways in which you can save money:

  • Make sure you’re receiving all the discounts for which you qualify.
  • Raise your deductible.
  • Lower the amount of coverage you’re paying for.
  • Shop around for policy service options and compare rates by using a comparison tool.

Your occupation and job title do affect how much you’re going to pay each month, but they’re not the only factors that are being taken into consideration. Your driving habits, driving record, location, and marital status will also be taken into account. Your vehicle might factor in as well. There are many different types of coverage, and depending on the sort of vehicle you drive, you may be overpaying. High-risk drivers are looked at as having a higher chance of speeding or causing an accident; if you drive a fast or new car you may want to keep your driving record squeaky clean.

Take a look at the frequently asked questions section below for answers to additional questions, including, “can my employer ask to see my car insurance?”

Going for minimum coverage may not be the smartest choice, even if it’s the cheapest. Generally it’s the additional coverage that helps in times of an accident. If you feel like you’re being overcharged, you can use a comparison tool to find other policies with different providers. Ready to buy car insurance? Enter your ZIP code in our FREE tool below to start comparing car insurance quotes now.

Frequently Asked Questions: Do car insurance companies check your employment?

Something you still need to know? Keep reading for some commonly asked questions about this topic.

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#1 – Can employers check car insurance?

Can an employer require proof of auto insurance? The answer is yes. Some employers want to make sure you have proper, legal transportation to and from work. 

How do employers verify that your car is insured? They may request some form of proof that you hold an auto policy, which you can get from your insurance company. 

#2 – Does being unemployed affect your car insurance?

So, do you need a job to get car insurance? In most cases, car insurance companies won’t deny you just because you’re unemployed, just like they wouldn’t deny car insurance to a student or employed person. Cheaper car insurance for unemployed people is available based on a number of factors, including your mileage. If you drive less because you’re not working, you can usually get lower rates. Unemployed car insurance can be found!

#3 – What occupation makes car insurance cheaper?

What occupation is cheapest for car insurance? What are the cheapest insurance job titles? What is the cheapest profession for car insurance? These are all variants of the same concern: having the lowest rates that are out there. 

There is no single answer to questions like these, as different companies charge different rates based on different factors. The best way to achieve customer satisfaction is to research what is out there, and find a company that works with you as well as for you.

References:

  1. https://www.kiplinger.com/article/insurance/t004-c000-s002-5-factors-that-raise-insurance-premiums.html
  2. https://www.businessinsider.com/personal-finance/how-zip-code-affects-car-insurance-2012-6
  3. https://www.iii.org/article/what-determines-price-my-auto-insurance-policy