Your Job Title Can Affect Your Car Insurance Premiums

It’s one of the things that consumer expert Martin Lewis is always mentioning; your job title matters when it comes to car insurance. It can cost you hundreds more each year if you have a high risk occupation. That said, saving cash by lying about your real job is not a smart move, as it will invalidate any claims – no payout and you might be refused cover in the future.

Here’s the word from the Indy website who have collated some useful data on car insurance premiums as a percentage of the average salary;

With car insurance prices rising by 18%, and searches for “why is car insurance so expensive” rising by 180% over the past 12 months, UK drivers are looking to find a way to cut the cost of  motoring. To help drivers save on their premiums, the experts at Independent Advisor Car Insurance have investigated the variables that at first glance seem harmless but can in fact, significantly increase car insurance bills.

One of the biggest hidden pitfalls that the experts discovered, that can quickly drive up premiums, is listing the drivers’ job role accurately..

Connor Campbell, expert at Independent Advisor Car Insurance, breaks it down: “Insurance companies always take your occupation into account when calculating your premium, and whilst it is extremely important not to lie about your job, it could be worth testing different variations to your job title and industry sector.

“Many jobs can be described in multiple ways, which in turn, could lead to different prices across various insurers. For example, a journalist may be able to use the terms ‘writer’, ‘editor’ or ‘reporter’ which could all give different annual insurance prices.”

Top 10 job titles with the biggest car insurance premiums

Being a care worker is most likely to increase car insurance premiums. Despite receiving the third lowest average annual salary, insurance prices will take 2.5% of carers’ paychecks – the largest amount of all career roles, at an average of £584.09 a year.

With an 84p difference from the highest ranking insurance price, delivery drivers fall closely in second place with an annual average of £583.24, deducting 2.28% of annual income.

Another key healthcare sector role, nursing professionals have the third highest insurance cost with an average of £565.76 annually. Despite both carers and nurses working for the NHS, nursing professionals would only lose 1.49% of their total income, compared to 2.5% for carers.

In fourth, customer service assistants pay just £10 less than nurses with a total average insurance premium of £556.30 a year – or 2.23% of their average annual income due to this price.

With the highest salary of £70k, only 0.79% of financial advisors’ salary will be impacted by their insurance premiums, despite having the fifth highest with an average annual cost of £552.77.

Top 5 job titles that drive a lower car insurance premium

Ranking as the job title lowest car insurance premiums are graphic designers. With a salary of £26,600, this average insurance price will deduct 1.83% of salary, costing £488.29 a year. Graphic designers are charged £95.80 less than carers (£584.09), the most expensive job role for car insurance.

LGV drivers placed second for cheap premiums, with a total average of £492.92 – just 1.32% of their annual salary.

In third place, with a yearly salary of £32,616, executive assistants and officers only use 1.53% of their total income to pay an average of £498.26 in car insurance premiums.

Amid increasing car insurance costs, Connor Campbell, expert at Independent Advisor Car Insurance offers his tips on cutting down insurance costs: “While premiums are painfully high at the moment, there are some simple steps drivers can take to reduce the cost.

“Increasing your voluntary excess can reduce the cost of your cover. However, you must ensure you have the excess amount saved to one side to ensure you can afford to pay it in the event of a claim. If you put this into an easy access savings account it will be earning you money until you need it too.

“Another money-saving tip is to ignore any unnecessary add-on options. When navigating the insurance process, there will be various offers of optional extras or bolt-ons – by opting in, your insurance will become more expensive. Only choose those you absolutely need.

“Avoid using estimates when you fill in your application. For example, to reduce your premiums, don’t overestimate your mileage. It is important to be certain of how many miles you use. More than half of UK motorists drive less than 100 miles a week and less than 15% hit 15,000 miles a year, so be as accurate as possible to avoid overpaying unnecessarily.”