Insurance carriers calculate premium rates based on the level of risk associated with each client. As debatable as this has been in the past days, it is still standard practice in many if not all insurance companies. This is the reason why insurance companies will want to check your driving history, location of where you live, your gender, driving habits, education levels and yes, your occupation. Your occupation is not used in isolation to calculate the premium rates you will be given but it is a key factor that insurers look at. It has been argued that such factors should be scraped but insurance companies have been adamant insisting on the importance of considering occupational hazards that may affect the driving ability of an individual.
The reason insurance companies’ do this is so that they may ascertain whether your job may be cause for an accident. Individuals in jobs that may imply higher stress level, long working hours, sleep deprivation and other health risk will definitely attract higher premium rates. Some of the professional that attract these hefty premiums are doctors, sales people, lawyers and business people. On the safer side are teachers, accountants and scientists as they are assumed to be in stable professions that will rarely cause any health risk. They are deemed to be low risk drivers and hence their insurance premiums will most likely be set on the lower side.
It is however important to note that not all drivers with low risk occupations are actually low risk drivers. This explains why insurance companies will also look at other factors when calculating premium rates. Such factors as driving history and income are a must to be considered when issuing car insurance premium rates. Another important factor that auto insurance companies’ check is level of education. This is based on statistics that indicate that individuals who have 4 years of higher education are not likely to have car accidents. How true that is up for debate but it would be wise for a married couple to apply for one car insurance using the person with the highest level of education as the main policy holder. This will definitely guarantee a low premium rate.
There is an ongoing debate and discussion on whether it is discriminatory for auto insurance companies to calculate premiums using level of education and type of occupation. Some people argue that it feels punitive to individuals in certain professions. However the insurance companies argue that the practice cushions their business as t helps them determine the risks wisely. They also state that education and occupation are not the primary considerations nor are they the only considerations. The most important consideration is your driving history.
It doesn’t matter what your profession is, if your driving history is dotted with accidents and incidents, you will without a doubt be classified under high risk drivers and hence attract high premium rates. So being a teacher who is a reckless driver will not save you from high premium rates.
Other factors that also come in to play during premium rate calculation are your age, your gender and marital status.
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