I heard that car insurance companies look at your education level
and occupation and that it's possible to get a discount if you have
a certain type of job. Is this true? What types of
occupations receive discounts? I'm trying to decide on a
major and thought this would be good to know.
Yes, people in some careers will get a break on their car insurance
rates or an outright discount. Is the discount big enough to switch
majors for? Probably not.
If state laws allow, a driver's education and occupation may be
considered as car insurance companies weigh
that can help determine your annual premiums.
The occupations that receive a discount on car insurance are
those that have statistically shown to be less risk to auto
insurers -- typically this means the insurance company's
records indicate that those working in these types of careers have
filed fewer claims than those in other lines of work. (See "
6 jobs that get car insurance discounts
The occupations that we typically see offered an auto discount
- EMTs (Emergency medical technicians)
- Police officers
- Military members
If your career won't get you a discount, it's possible that the
company you work for, or other affiliations you have, will get you
a group discount. (See "
Discount for beer makers
Your occupation may also make a difference in what type of car
insurance you need. For example, if you are an
who uses your personal vehicle for work purposes, you may need to
upgrade to a business-use or commercial auto insurance policy.
Or, if you have a job where you transport goods for money, your
personal auto insurance policy's coverages may be voided.
This means if you take a job delivering pizza to help pay for
tuition, you would normally need to obtain a commercial policy.
Your level of education can also be taken into account by some
insurance providers, possibly shaving your final premium. A
master's or doctoral degree may help bring down your car insurance
rates even if your specific job type doesn't.
Insurance policy guidelines and discounts vary greatly from one
insurance company to the next, so when shopping for car insurance
ask what all discounts are available. While the career path
you end up on may not come with an occupation discount, you may
still be eligible for plenty of others. (See "A guide to car
For instance, right now while in college you may be eligible to
receive a good student discount that will reduce your auto
insurance premium if you get good grades. Or your parents may
be able to get a discount on their rates if you are away at school.
(See "Discounts for young drivers")