How Does Your Job Influence Your Monthly Auto Insurance Premiums?

Auto insurance companies use several factors to determine how much your monthly premiums will be, and one of those factors is what you do for a living. When you sign up for auto insurance, the application will require you to pick a job title that most closely matches your career, and they'll use that as part of their formula to determine your premiums. While your job is a less important factor in determining your monthly premiums than your driving record, it still influences how much you pay for car insurance. To learn how your line of work affects your monthly premiums, read on.

Your Job Title Affects Your Likelihood of Filing an Insurance Claim 

Auto insurance companies set your monthly premium based on how likely you are to file an insurance claim. If you're considered more likely to file a claim than other drivers, you'll be required to pay more for coverage.

Some professions are riskier to insure from an insurance company's point of view. A traveling respiratory therapist, for example, may spend a large portion of the workday on the road traveling between several nursing homes. More time on the road means a greater chance of getting into an accident and filing an insurance claim as a result.

Auto insurance companies have access to a vast database of claims that have been filed by drivers. Using this information, they're able to see which professions are most likely to file a claim and require the insurer to pay money to cover it. Insurance companies need to limit the amount of risk that they take on in order to make money, and setting auto insurance premiums based on someone's line of work is part of this process.

Remote Work Can Lower Your Monthly Premiums

Some jobs allow you to save a substantial amount of money on car insurance because you won't be on the road much. If you're working from home, whether it's full-time or if you're only in the office one or two days a week, make sure you tell your insurance agent. You may be able to lower your premium based on the number of miles you drive each week as part of your commute.

If you're not driving to work every weekday, then you're driving much less than a commuter and are much less risky to insure by comparison. You'll be able to pay less in auto insurance premiums as a result.

Ultimately, your job influences your monthly premiums because it affects how much you're on the road during the average workday. This influences how likely you are to get into an accident and file a claim. If you're in a job that requires you to drive during work, it's a good idea to shop around for auto insurance to see if you can find one that weighs your line of work less heavily than others — this can help make your insurance coverage cheaper.

Speak to an agent to learn more about auto insurance.