When you were a twenty-something venturing into the "real world" and starting your first "real job," was car insurance at the forefront of your thoughts? Probably not. But if someone had told you you could save up to 40% on your car insurance with a change of jobs, would you have thought twice about that lofty aspiration for the corner office? You just might have.
Say a college freshman who loves math and working with numbers is wondering whether to apply her smarts in the Engineering department or in the Business Economics major. Unable to decide, she heads to the career counselor's officer where she learns that the average premium on car insurance for an Engineer is about $1,050 when the average premium for a Business Owner is $1,450. Bus-Econ suddenly doesn't sound all that great to her - she already has plenty of loans to think about.
So what are the careers that keep the most money in your pocket and which mean you'll be forking out serious cash? Here's how a few professions compare:
Occupations that pay lower premiums:
- Scientists
- Retirees
- Pilots/Navigators
- Public Officials
- Designers
- Actors/Artists
- Librarians/Historians
- Farmers
- Students
Occupations that pay higher premiums:
- Business Owners
- Executives
- Attorneys/Judges
- Nurses
- Medical Doctors
- Police/Fire Chiefs
- Self-Employed Individuals
- Security Guards
- Nannies
The scientists, pilots and artists on average pay up to 40% less on auto insurance than the business owners, lawyers and judges of the world. Waiters, engineers and chefs also save big compared with real estate agents, members of the clergy and government employees. But why?
Insurance companies largely base their policy rates on a driver's risk factors; most of which are immediately obvious and completely fair. Location, commute, and time spent in the car are factors that fall into this category. If your career requires you to drive every day into a crowded metropolitan area (think: lawyer or real estate agent), you're going to pay more than the person whose career requires minimal driving on a rural road (think: farmer) or even just the person who doesn't have to hit the road during rush-hour (think: artist or chef).
But what does it mean when your insurance company starts profiling your personality and driving abilities based on your career choice? Are all scientists more meticulous and logical than executives? And does this make them better drivers? Are all lawyers more stressed-out and preoccupied than actors? Does this translate to their aggression and patience-level on the road?
Insurance companies regularly do research based on these factors and whether certain careers mean better driving records, but is it fair? What do you think?
