How Occupation Affects Car Insurance Rates (Education, Discounts, & Rates)
Your Occupation can affect your auto insurance rates. Car insurance companies consider some jobs to be high-risk and some to be low-risk. If you have a low-risk job, you may be eligible for an insurance discount.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
UPDATED: Aug 5, 2024
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UPDATED: Aug 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- You can lower rates with a car insurance occupation discount
- Your work commute distance may entitle you to low mileage discounts
- Some companies offer reductions if you get insurance through an employer group plan, a professional network, or a business association
Many people may be unaware, but your occupation affects car insurance. Insurers who view your occupation as high risk could charge you a higher rate on auto coverage.
You could also qualify for lower coverage rates with a car insurance occupation discount. Drivers who work in specific fields or professions may be eligible for these discounts.
Occupational discounts are just one of many car insurance discounts you may qualify for to reduce your rates, and you can explore this discount in detail to determine if it applies to you.
Keep reading to see how occupation and education levels affect car insurance rates.
How does occupation affect car insurance?
When shopping for insurance, you may need to provide employment information. Insurers often use this information to set your rates because it determines your risk level to insure.
For example, a Uber or Lyft driver is constantly on the road. As a result, the chances of getting into an accident are higher than the average driver. Therefore, car insurance companies may hike car insurance rates due to the increased risk.
Those with lower-risk jobs, such as child care workers and medical assistants, may be eligible for a car insurance occupation discount.
It’s also essential to inform your insurance company if you change jobs — you may be eligible for a better discount or require a change in coverage. In fact, many insurers offer car insurance discounts for low-risk jobs.
The best car insurance by occupation depends on many other factors, such as age, driving record, and ZIP code.
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How High-Risk Occupations vs. Low-Risk Occupations Affect Car Insurance
With insurance, risk and rates always correlate, so you may see lower rates if your profession is low-risk. If your job is high-risk, insurance rates may be higher.
So which professions are high-risk and which are low-risk? Auto insurance companies use a large amount of data, statistics, and surveys to compile a list of the riskiest professions. However, this list varies by company.
This table shows the auto insurance industry’s top 15 high-risk and low-risk occupations.
High-Risk Occupations Six-Month Rates Low-Risk Occupation Six-Month Rates
Chef (No High School) $1,038.90 Homemaker $407.50
Chef (High School) $1,038.90 Professor
With College Degree$430.10
Currently Unemployed $992 Military Officer
(Air Force O-1)$836.80
Actor $992 Retired Miltary
(Air Force O-6)$836.80
Waiter/Bartender/Host $992 Psychiatrist $871.50
Athlete $992 Military E-5
$875.10
Insurers determine risk by the likelihood individuals in a particular occupation will file a claim. For example, bartenders, waitresses, and DJs usually work into the night, in environments with alcohol, and where parties occur — so insurers may consider them high risk and charge higher rates. On the other hand, occupation like homemakers are perceived as low-risk by insurance companies, leading to lower rates. It’s recommended to compare homemaker car insurance rates to take advantage of this low-risk profile and secure the best coverage.
Depending on your occupation, you may qualify for savings on your rates. Fields eligible for this discount vary by the insurance company.
How does occupation impact car insurance rates?
Now that you know how car insurance companies look at your occupation, we’ll talk about a few of the most common careers that affect your rates.
Some of the top occupations that you may find discounts for include:
- Teachers
- Law enforcement officials
- Firefighters
- Federal or government workers
- Military professionals
Some people consider going to school a full-time job. Typically, full-time students don’t qualify for a car insurance occupation discount. Still, you may be eligible for a good student discount or other similar discounts through select companies.
Read More:
- Can I get car insurance without having a job?
- Compare Church Worker Car Insurance Rates
- Compare Customer Service Worker Car Insurance Rates
- Compare Federal Employee Car Insurance Rates
- Compare Professional Diplomat Car Insurance Rates
- Compare Self-Employed Worker Car Insurance Rates
- Compare Home-Care Worker Car Insurance Rates
- Compare Pharmacist Car Insurance Rates
- Compare Manager & Director Car Insurance Rates
- Compare Drivers Without a College Degree Car Insurance Rates
- Compare Drivers With a College Degree Car Insurance Rates
- Low-Risk Jobs Car Insurance Discounts
- Compare Professional Engineer Car Insurance Rates
- Compare Professional Teacher Car Insurance Rates
- Compare Real Estate Agent Car Insurance Rates
In addition, when you retire from the workforce, you may qualify for a retiree or senior discount through some car insurance companies.
Self-Employed Car Insurance Rates
Our research shows that there is no distinction between self-employed car insurance rates and rates for employment through a private employer.
If you’re self-employed and use your vehicle for business purposes, don’t assume your personal auto insurance will cover an accident while conducting business. Contact your insurance company representative to ensure you have the right coverage.
It may be best to look into a separate business owners policy or in-home business policy to adequately protect yourself from all potential liabilities.
If you plan to employ other people who will also drive your vehicle(s), check their driving records early and often.
Education Professional Car Insurance Rates
How does work in the education field impact your auto insurance rates? This table shows average rates for different professions in the education field.
Occupation Monthly Rates Six-Month Rates Annual Rates
Teacher/Dean/Individual With Education Degree $151 $906 $1,812
Instructor/Coach/Teacher's Assistant $151 $906 $1,812
Librarian $151 $906 $1,812
Computer/Math/Research $151 $906 $1,812
Administrator $151 $906 $1,812
Admin. Asst./Secretary $151 $906 $1,812
Car insurance discounts for teachers can help lower these rates.
Teachers, deans, and individuals with an education degree are at the higher end of auto insurance rates among the low-risk professions.
Teachers tend to have after-school events and evening events to attend, putting them on the road in the evening several times a year. In addition, teachers may spend more time on the road for summer vacation and school holidays.
More time on the road means more risk for accidents, damage, or vehicle theft.
Though all teachers have different schedules and some work through the summer, insurers consider each teacher’s average activity when setting rates.
Law Enforcement and Emergency Personnel Auto Insurance Rates
What if you’re a first responder? Are you entitled to lower rates from car insurance companies?
This table shows average car insurance rates for first responders.
Occupation Monthly Rates Six-Month Rates Annual Rates
EMT $157.98 $947.90 $1,895.80
Firefighter $157.98 $947.90 $1,895.80
Highway Patrol $157.98 $947.90 $1,895.80
Police Officer $157.98 $947.90 $1,895.80
First responders put their lives on the line each time they respond to an emergency call. They may have to use a personal vehicle to arrive at the emergency site at times.
Therefore, first responders need to get proper coverage for private and work vehicles to protect them after an accident.
Police officers, firefighters, and emergency service workers drive a lot and undergo advanced driving training upon hiring. Therefore, the law classifies them as professional drivers.
Firefighters also have a state-specific license permitting them to drive fire trucks.
However, being a professional driver doesn’t always translate to cheap car insurance rates.
First responders face many risks and challenges unique to their professions that auto insurance companies also consider when pricing quotes.
Their jobs may require them to attend to any situation urgently regardless of their location. Therefore, the workers have exposure to more risks than any other occupation, eventually leading to higher rates.
Most first responders also work long hours and night shifts — an exhausted driver is more prone to causing an accident than drivers operating on normal rest. Additionally, nighttime drivers are renowned for causing more accidents than daytime ones.
Military Auto Insurance Rates
If you’ve served in the U.S. military, you may be eligible to save on your car insurance.
This table shows average car insurance rates for different military professions.
Rank Monthly Rates Possible Savings
Military Officer
(Air Force O-1)$139 $21
Military E-5
(Air Force)$146 $22
Military E-5
(Army)$146 $22
Military E-5
(Coast Guard)$146 $22
Military E-5
(Marines)$146 $22
Military E-5
(Navy)$146 $22
Military E-1
(Air Force)$153 $23
Military E-2
(Air Force)$153 $23
Military E-3
(Air Force)$153 $23
Military E-4
(Air Force)$153 $23
Many auto insurers offer car insurance discounts for military members and their families.
For example, Geico offers a discount of up to 15% to military members and specific military organizations, such as The Association of the United States Army, The Navy Federal Credit Union, and The National Military Family Association.
On the other hand, USAA only offers coverage to military members and their families. You must be an active, honorable discharged, or retired member of the U.S. armed forces to get a USAA policy.
Many insurance companies also offer special rates and discounts for veterans and those garaging their vehicles while deployed.
Those who served in the military are less of a risk to insure than civilians, so they often qualify for discounts. Since military personnel receive intensive training to operate different types of machinery, they’re low-risk drivers, qualifying them for a lifelong discount.
Blue-Collar and White-Collar Car Insurance Rates
Do you love working outdoors or performing manual labor? Or do you prefer dressing up and going to the office?
Whether we work a blue-collar or white-collar job, we all want to save as much money as possible on car insurance rates.
This table shows average rates for blue-collar and white-collar occupations.
Blue-Collar Workers Monthly
RatesWhite-Collar Workers Monthly
Rates
Construction/Skilled Worker $151 Architect $151
Farm Manager, Owner $157.98 Bank/Clerical/Office Staff $151
Mechanic $157.98 Admin. Asst./Secretary $151
Tradesman $157.98 Engineer $151
Manufacturer $157.98 Administrator $151
Technician $157.98 Manager/Director $151
Machinist/Toolmaker $157.98 CPA/Comptroller $151
Barber/Beautician $161.72 Attorney/Lawyer/Judge $151
Mortician/Undertaker $165.33 Executive $151
Breeder $165.33 Statistician $151
Groomer $165.33 Professional Designer $157.98
Trainer $165.33 Marketing/Advertising $157.98
Clerk/Cashier $165.33 Customer Service $157.98
Machine Operator $165.33 Clergy $157.98
Cleaning/Janitorial $165.33 Sales/Real Estate $157.98
Repair/Maintenance $165.33 Supervisor/Asst. Manager $157.98
Hands-on individuals who aren’t afraid to break out the tools and repair their vehicle — like blue-collar workers — may be less likely to file a claim for car repairs.
Certified public accountants, comptrollers, and accountants are considered professionals. There are many differences between the specific roles in their occupations, but insurers often group these three careers when considering car insurance rates. (For more information, read our “Compare Accountant & Comptroller Car Insurance Rates“).
These white-collar professionals present a similar risk to insurance companies as the blue-color construction workers above, so their quotes are the same. However, keeping the number of claims down as a group helps lower their statistical insurance risk.
Medical Professional Auto Insurance Rates
Car insurance rates for a medical doctor or dentist can vary due to a lot of factors. Medical professionals may be eligible for car insurance discounts because the education required to become a medical professional can indicate your level of responsibility.
This table shows average Geico car insurance rates for medical professionals.
Occupation Geico Six-Month
Rates
Surgeon $916.80
Orthodontist $916.80
Nurse $947.90
Occupational Therapist $947.90
While doctors statistically get into more accidents than teachers, the difference in their car insurance rates is relatively low compared to the difference in salary between the two professions.
Doctors are less likely than teachers to file a claim with their insurance companies for a minor fender bender, choosing to pay out-of-pocket expenses rather than incur a potential hike in rates.
When the insurance company saves money on claims, they pass those savings on to the medical professionals.
Legal Professional Car Insurance Rates
Jobs in the legal profession tend to be high-stress and require great attention to detail, long hours, and unpredictable results, meaning the stress can be ongoing. Attorneys often take the stress of their work home and on the road.
Here is a look at potential discounted rates for legal professionals, based on an average 4% discount for the entire group:
Occupation Geico Six-Month
RatesPotential Discounted
Rates
Judge $906 $869.76
Attorney $906 $869.76
Paralegal $906 $869.76
Car insurance rates for attorneys, lawyers, and judges are usually higher than average when it comes to occupation.
Trials and client meetings can occur at any time, day or night. When working on a case, an attorney may also work overtime, meaning they’ll drive at different hours.
Entertainer and Professional Athlete Car Insurance Rates
Entertainers and professional athletes have a common need to travel great distances during their duties.
This travel requirement puts them on the road a lot. So they may be more vulnerable to an accident than the average person, resulting in higher rates.
This table shows average rates from Geico for entertainers.
Occupation Geico Monthly
RatesGeico Six-Month
RatesGeico Annual
Rates
Actor $165.33 $992 $1,984
Athlete $165.33 $992 $1,984
Professional athletes are typically young and drive automobiles with high value and performance, possibly leading to excessive claims and higher rates.
They also tend to select higher liability limits since their fame and wealth often make them targets for litigation in the event of an accident.
Retired Car Insurance Rates
What if you’re retired from the workforce? What rates can you expect to pay for car insurance for retirees?
Several companies offer discounts, such as Senior Driver and Recent Retirees car insurance discounts. Additionally, companies like The Hartford and AARP offer discounts to seniors and retirees who take a defensive driving course, offered at no cost by some companies.
You may also qualify for low-mileage discounts. For example, since you’re no longer driving back and forth to a place of employment, you’re less likely to be involved in an accident and put fewer miles on your vehicle.
Retirees should also maintain a clean driving record to keep low rates. If you are a senior in retirement, you likely have a safer driving history than your younger counterparts. Drivers 50 and younger commit over 75% of car accidents in the United States.
During our research, we obtained quotes from Geico for retirees in the states of Maine and Louisiana since those two states were the least and most expensive states, respectively, to provide quotes.
State 65-Year-Old Retired Male 65-Year-Old Retired Female 65-Year-Old Employed Male 65-Year-Old Employed Female
Maine $233.80 $233.80
$269.60 $269.60
Louisiana $1,066.77 $1,255.65 $1,128.45 $1,328.10
When obtaining the quotes, no discounts are applied, though some quotes already factor in certain discounts.
Another consideration for retirees is owning multiple properties in multiple locations.
If you are a snowbird, own a rental property, or spend a significant amount of time traveling in a mobile home or RV, check on rates for multi-car policies and state-specific laws about residency that will impact your rates.
Unemployed Auto Insurance Rates
Does being unemployed affect car insurance rates? When in between jobs, the last thing you need to worry about is higher car insurance rates.
Fortunately, your lack of employment cannot disqualify you from buying car insurance, nor does it necessarily harm your rates.
There are several instances where unemployed car insurance can have lower rates.
Read more: Compare Unemployed Driver Car Insurance Rates
While unemployed, you’re not making your daily commute to and from work, meaning you’re not traveling during the morning and afternoon rush hours. Some auto insurers view this reduction in travel as a decrease in risk.
Contact your insurance company representative and inform them of the change in your employment status.
If you’re unemployed and don’t spend much time on the roads, you may get a discount. Car insurance companies may call this a “pleasure usage rating.” A pleasure usage rating applies when your annual mileage is significantly below an average driver’s.
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Geico Auto Insurance and Discounts Overview
Geico offers a variety of auto insurance options and discounts tailored to different professions and circumstances. Here’s a comprehensive look at what Geico provides:
Geico Auto Insurance Quote
Getting a Geico auto insurance quote is straightforward and can be done online or through their app. You’ll need basic information about your vehicle and driving history.
Geico Discounts for Teachers
Teachers can benefit from Geico’s special discounts, which help lower insurance premiums based on their profession.
- Geico Teacher Discount: Teachers can qualify for reduced rates on their car insurance policies.
- Geico Educator Discount: This discount extends to educators in various roles, including professors and school administrators.
Geico Discounts for First Responders and Healthcare Workers
Geico acknowledges the contributions of first responders and healthcare workers with exclusive discounts:
- Geico First Responder Discount: Police officers, firefighters, and EMTs may qualify for reduced insurance rates.
- Geico Healthcare Worker Discount: Medical professionals such as doctors, nurses, and hospital staff can also benefit from special savings.
Geico Discounts for High-Risk Drivers
Geico provides options for drivers classified as high-risk, helping them find affordable insurance coverage despite their higher-risk status.
- Geico High-Risk Insurance: Geico offers tailored solutions for individuals with a history of accidents or traffic violations.
Geico Job Opportunities and Work from Home Positions
Geico offers diverse employment opportunities, including remote work options:
- Geico Work from Home Jobs: Explore remote job openings available at Geico across various departments.
- Geico Insurance Careers: Geico offers career paths in insurance, including roles in claims, underwriting, and customer service.
Geico Discounts for Law Enforcement and Legal Professionals
Law enforcement officers and legal professionals can benefit from specialized discounts:
- Geico Law Enforcement Discount: Police officers and law enforcement personnel can enjoy reduced insurance rates.
- Geico Legal Careers: Geico provides opportunities for legal professionals interested in insurance law and claims.
Geico Personal Trainer Insurance Coverage
Geico offers insurance coverage tailored to personal trainers and fitness professionals:
- Geico Personal Trainer Insurance: Coverage options designed to protect personal trainers and fitness instructors.
Geico Safety Patrol Jobs and Opportunities
Explore opportunities with Geico in safety and patrol roles:
- Geico Safety Patrol Jobs: Positions related to safety and security, offering rewarding careers with Geico.
Geico Insurance Quotes and Lowering Insurance Rates
Geico provides tools and resources to help customers lower their insurance rates:
- Geico car insurance quote: Obtain a personalized quote to explore competitive rates.
- How to lower your Geico insurance rates: Learn about strategies and discounts available to reduce insurance costs.
By understanding these offerings, you can make informed decisions about your auto insurance needs with Geico, tailored to your profession and circumstances.
Does education level affect car insurance?
Did you know that a college degree can lower your car insurance rates? Take a look at these rates from Geico for comparison.
Education
LevelGeico
Monthly RatesEducation
LevelGeico
Monthly Rates
Associate's $165.33 No High School (Military E-5) $145.85
Bachelor's $165.33 High School (Military E-5) $145.85
Master's $165.33 Associate's (Military E-5) $145.85
Ph.D $165.33 Bachelor's (Military E-5) $145.85
No High School $173.15 Master's (Military E-5) $145.85
High School $173.15 PhD (Military E-5) $145.85
State Farm is one of the few larger insurers that doesn’t consider education when determining risk. Many auto insurance companies offer a discount to customers who attend college and earn a degree.
Case Studies: Impact of Occupation on Car Insurance Rates
Case Study 1: Educators’ Discount
John is a high school teacher who recently renewed his car insurance policy. His insurance provider offers a special discount for educators, recognizing their typically responsible behavior and lower risk profile. Due to this discount, John’s car insurance rates are more affordable compared to individuals in other professions.
Case Study 2: Professional Driver Surcharge
Sarah works as a delivery driver and uses her personal vehicle for work-related purposes. Her insurance provider considers her occupation as a higher risk due to the increased time spent on the road and exposure to potential accidents. As a result, Sarah’s car insurance rates may be higher to reflect the nature of her profession. (For more information, read our “Delivery Driver Car Insurance: Compare Rates, Discounts, & Requirements“).
Case Study 3: Business Executive Discount
Mike is a senior executive at a corporate firm and holds a high-level position. His insurance provider offers a discount for individuals in executive roles, as they are perceived to be responsible and less likely to engage in risky driving behaviors. Mike benefits from this discount, resulting in lower car insurance rates.
Case Study 4: Occupation-Specific Risk Assessment
Samantha works as a nurse in a busy hospital emergency room. Her insurance provider assesses the risks associated with her occupation, taking into consideration the potential for increased stress levels and fatigue that can affect driving behavior. As a result, Samantha’s car insurance rates may be slightly higher compared to individuals in other professions.
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The Bottom Line: How Occupation Affects Car Insurance
Each car insurance company assesses occupational risk differently. High-risk jobs could mean higher rates, and low-risk jobs could entitle you to a discount.
Ask your colleagues or co-workers for recommendations or conduct thorough research online for providers offering an applicable discount.
By taking this initial step, you may be able to more quickly obtain affordable quotes for a new policy that considers an occupational discount.
Since each car insurance company weighs risk differently, compare multiple companies to find the best rates and discounts.
Frequently Asked Questions
How does my occupation affect my car insurance rates?
Your occupation can impact your car insurance rates because insurance companies consider various factors, including risk levels associated with different occupations. Certain occupations may be associated with lower risk, resulting in lower insurance rates, while others may be deemed higher risk, leading to higher premiums.
Which occupations are considered lower risk by insurance companies?
While specific classifications may vary among insurance providers, occupations typically considered lower risk include teachers, engineers, scientists, accountants, and healthcare professionals. These occupations often involve lower mileage and are associated with responsible behavior.
Are there any discounts available based on occupation?
Yes, some insurance companies offer occupation-based discounts. These discounts vary by provider but are often available for professionals such as teachers, police officers, firefighters, and members of the military. It’s advisable to check with your insurance company or agent to see if you qualify for any occupation-related discounts.
Can education level affect car insurance rates?
Yes, education level can impact car insurance rates in some cases. Many insurance companies consider education as a factor when determining rates because statistical data suggests a correlation between higher education levels and responsible driving habits. Having a higher level of education, such as a college degree, may result in lower insurance premiums.
Is my occupation the only factor that affects my car insurance rates?
No, your occupation is just one of the many factors that insurance companies consider when determining your car insurance rates. Other factors include your driving record, age, gender, location, type of vehicle, annual mileage, and claims history, among others. All of these factors are evaluated together to assess your overall risk level.
Is car insurance cheaper for pleasure or work use?
Car insurance premiums can vary based on whether your vehicle is primarily used for pleasure or work. Generally, pleasure use, which typically involves less frequent driving for personal enjoyment, may result in lower insurance premiums compared to vehicles used for daily commuting or business purposes.
Is car insurance cheaper for students or employed individuals?
Car insurance rates can be influenced by whether you are a student or employed. Students, especially younger drivers, often face higher premiums due to perceived higher risk. Employed individuals, particularly if they have a stable job and driving history, may qualify for lower rates depending on their occupation.
Does being a student affect car insurance rates?
Yes, being a student can affect car insurance rates. Students, especially younger drivers with less experience, are often considered higher risk by insurance companies. However, many insurers offer discounts for good grades, which can help offset higher premiums.
Does being unemployed affect your car insurance?
Being unemployed may impact your car insurance premiums. Insurance companies often consider factors like employment status when calculating rates, as individuals with stable employment are perceived as having lower risk. However, there are insurers who cater specifically to individuals with varying employment statuses.
Does your job affect your car insurance premiums?
Yes, your job can affect your car insurance premiums. Certain occupations are associated with lower risk, leading to potentially lower premiums. For example, professions that require less driving or are statistically associated with safer driving behaviors may qualify for
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.