What Is An Occupation Discount?

Occupation discounts allow drivers working in specific fields to have reduced car insurance rates. Companies like Allstate, Geico, and Nationwide offer occupation discounts.

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UPDATED: May 4, 2022

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Written By: Laura BerryReviewed By: Joel OhmanUPDATED: May 4, 2022Fact Checked

Here's what you need to know...

  • Some drivers may qualify for a special auto insurance discount based on their occupation
  • Other drivers may qualify for financial savings related to where or how they work
  • If you drive your car for business purposes, you may need to purchase a commercial auto policy

As a driver, you may be aware that car insurance is required by law in most states, and your auto lender may even have its own unique coverage requirements that you must comply with.

However, you may not be aware that some insurance companies offer discounts to drivers who work in specific fields or professions.

This is just one of many car insurance discounts that you may qualify for to reduce your premium, and you can explore this discount in detail to determine if it applies to you.

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How Your Occupation Can Affect Your Auto Insurance Rates

Depending on your occupation or profession, you may qualify for immediate savings on your premium. Occupations that qualify for this type of discount vary based on which insurance company you reach out.

Therefore, explore all of the options thoroughly so that you can take full advantage of this benefit if it applies to you.

Some of the top occupations that you may find discounts for include:

Some people consider going to school to be a full-time job. Typically, full-time students will not qualify for an occupation discount, but you may qualify for a good student discount or other similar types of discounts available through select providers.

In addition, when you retire from the workforce, you may qualify for a retiree or senior discount through some providers for additional savings.

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Other Ways Your Work Activities Can Lower Your Auto Insurance Rates

Your occupation is just one of several ways that your work activities can result in a lower auto insurance rate.

For example, if you work from home, you may qualify for an infrequent driver or low mileage discount. If you have a separate work and personal use vehicle, you may qualify for a multiple vehicles discount.

While some auto insurance providers offer a direct discount for those who work in specific fields, there may be discounts available for professionals through trade organizations and associations.

It may be helpful for you to review the membership benefits of each organization that you belong to or that you are thinking about joining to determine if financial savings is available.

Choosing the Ideal Coverage Type and Limits

Between liability, comprehensive, and other types of insurance, you have many options to choose from when setting up a new car insurance policy.

Each coverage type that you add to your policy may be established with a specific limit.

You need to comply with all state requirements for insurance as well as potential lender requirements if you have a car loan.

However, after these minimum requirements are met, you can adjust your coverage types and limits as desired to control the cost of your insurance premium.

While you may want to keep coverage to a minimum to save money, remember that being underinsured can be very expensive.

Any expenses that exceed the limits of your coverage will be your responsibility to pay out of your own funds.

The Potential Need for Commercial Insurance

In some cases, drivers use their vehicle for work purposes, and this may dictate a need to purchase a commercial insurance policy.

The typical office worker who runs errands for her employer a few hours per week may not need commercial insurance.

However, if you use your vehicle solely for business or if you transport passengers or specific types of cargo, commercial insurance may be required.

You should spend time learning more about the coverage requirements and rules in your state before shopping for new insurance rates online.

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When to Shop for New Rates

Many drivers rarely think about their auto insurance, and because of this, it may have been several years since you last compared rates.

Shopping for new rates is one of the best ways for you to identify potential savings available through other providers.

Insurance rates, available discounts, and the factors that affect rates all change from time to time. Ideally, you will request new quotes for coverage every six months, and getting insurance quotes online is a time-saving strategy.

However, there are instances when it makes sense to request quotes sooner than six months from now.

For example, if you have recently started a new job and now qualify for an occupation discount, you may benefit from looking for a reputable car insurance provider that offers a related discount.

In addition, if your commute distance has changed or you have started working from home, getting new coverage quotes sooner from a couple of providers may be advisable.

Who to Request Quotes From

Each provider that you reach out for a quote may have different rates and a unique combination of discounts to help you save money.

Without requesting specific quotes from a few providers, it may be impossible to accurately determine the premium that each one will charge you.

However, because there are several dozen providers that offer car insurance, it is not realistic for most people to request rates from every single provider every six months.

If you are looking for a faster way to request insurance quotes, narrow down your options to the top three or four companies. Ideally, these are companies that are well-rated in the areas of financial strength and customer satisfaction.

Use the internet to research these factors and to quickly request quotes from your top providers. With this strategy, it may only take you a few hours or less to find a competitive rate on your car insurance policy.

Finding Providers Who Offer the Best Rates for Your Profession

If you work in one of the professions listed here or in a closely related field, you may qualify for an occupations discount.

However, before you can take advantage of potential savings available for those who work in your field, you need to find the right provider to get a quote from.

A smart idea is to ask your colleagues or co-workers for recommendations or conduct a thorough search online for providers that offer a relevant discount.

By taking this initial step, you may be able to more quickly obtain affordable quotes for a new policy that take into account an occupations discount.

Find discounts here offered by various car insurance companies, then use our FREE quote comparison tool to find affordable car insurance in your area today!

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.

A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

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