Does your job title affect car insurance cost?

Written by:
Geoff Tooze
Founder & Car Insurance

Most things can affect the cost of young driver insurance. Even if you don’t drive for your job, it affects how much you pay for your insurance.

Find out how insurance providers use your occupation when calculating the cost of car insurance policies.

Why do car insurance companies ask for your occupation?

Your car insurance policy is more expensive when your job involves a lot of driving, and these occupations include delivery drivers, couriers, taxi drivers, and tradespeople like plumbers and electricians. Alternatively, occupations that typically demand much less driving, such as teachers, sales assistants and astronauts, will likely get cheaper insurance.

Unemployed drivers often travel to unfamiliar places looking for work. The increased mileage and risk of theft increase their premiums.

By law, drivers on disability benefits should not pay more insurance; however, if a car is modified, it can cost more to insure.

Unlike young drivers, retired people will likely pay less for insurance premiums because of their years of driving experience.

Do car insurance companies check employment?

Most insurance providers don’t check your employment details when you apply for car insurance. However, they might want to confirm your employment status in specific circumstances or if you make a claim. If you don’t answer the insurance questions truthfully, your insurance could be invalidated.

Is car insurance cheaper for students or employed?

When applying for car insurance, most who list their primary occupation as “student” are under 25. Insurers typically consider this age group the riskiest to insure and will generally charge higher premiums. Even if you’re a mature student, car insurance may be more expensive than expected. However, your age and driving experience will count in your favour.

Does being self-employed affect your car insurance premium?

Is it better to be employed or self-employed for car insurance?

Self-employed drivers pay higher car insurance premiums, as insurance companies consider you a higher risk than being employed.

If you work for yourself and drive a car, van or another vehicle as part of your job, it will affect the type of motor insurance you need:

  • Van insurance for tradespeople, which can also carry expensive equipment
  • Courier insurance.
  • Taxi driver insurance

Many job titles can be employed or self-employed. Even when you do not need to drive to work, you’ll likely pay more if you are your own boss.

It’s not all bad news. You might be able to claim self-employed car insurance as a tax-deductible expense.

Does having two jobs affect insurance?

In most cases, it depends on the second job. If the second job is risky or adds a commute to your day, then your insurance provider will likely increase your car insurance premium. For example, if you work a second job as a delivery driver, then this will impact your insurance.

Does being an unemployed driver affect car insurance quotes?

Car insurers usually consider unemployed drivers to be riskier than those in employment, and insurance premiums tend to be higher.

Why are unemployed drivers a higher risk?

They are more likely to be a credit risk – meaning they are less likely to pay their debts.

Less likely to service their vehicle – out-of-work drivers with less disposable income might try to save on the car’s running cost.

Concerns of being unemployed can cause financial distraction and other worries with an increased chance of an accident.

Unemployed drivers looking for a job tend to travel extra miles while searching for work

Can I change my job title to make my insurance cheaper?

Never select the wrong job title when completing your car insurance quote. Although you’ll probably reduce the insurance cost, there is no point as you would invalidate the policy.

Likewise, don’t exaggerate your job title as many younger people do. If you’re a stacker in Tesco, don’t select assistant manager – you’ll pay higher insurance for a bit of ego.

You might see several options on the list that fit your job description. Use a comparison website to get quotes for each job title to see which is cheaper.

Do I need to tell my insurer if I change jobs or lose my job?

Yes, if your job status changes, such as change jobs or losing your job, you must update your insurer. Whether your premium goes up, down or remains the same depends on your job.

What other factors impact the cost of car insurance?

Although your job title plays a significant role, it’s one of many factors used to calculate your premium, some of which are:

  • Your age
  • Mileage
  • Make and model of the car
  • Postcode
  • Overnight parking
  • Driving history
  • Adding a named driver
  • Voluntary excess
  • Non-factory modifications to the car

Does being retired affect car insurance?

Do retired people pay more for car insurance?

No. When you retire, you’ll likely get cheaper car insurance. Not only do insurers consider retirees the least risky drivers, but they also tend to drive at safer times and no longer commute to work at peak times when accidents are most likely.

However, this does not apply to young drivers who win the lottery and stop working early – you’ll still have to pay more for your car insurance.

Why does your job title affect your car insurance?
Your job title can substantially affect the amount you pay for car insurance. The insurance provider assess the perceived risk of a road accident with a particular job. For example, Insurers consider how long and under what conditions you drive for your work. Occupations involving frequent driving, long commutes, or driving during high-risk times (like late nights) are considered higher risk. Insurers also analyze historical data and past claims against specific occupations to identify trends in road accidents.
What factors apart from job title impact the cost of car insurance?
Car insurance companies consider many things besides your job title when calculating your car insurance premium. Further personal information, including your driving record, insurers will also look at the car you want to insure and previous car insurance claims.
Which job titles carry a greater risk to car insurers?
Amongst the occupations that attract the highest premiums are self-employed individuals and those who drive frequently in connection with their work moving from client to client. For example, tradespeople such as plumbers, painters, roofers, gardeners, and other job titles attracting a higher premium include hairdressers and beauticians.

Published: 16th of February 2024
Updated: 12th of June 2024