Time to Update The Occupation Risk Factor for the 21st Century?

One of the blunt instruments used by insurers is long overdue for a 21st century update. Yes, we are talking about the outdated job risk categories when it comes to car insurance.

For example, a journalist or editor is considered high risk as they are assumed to travel at top speed from one local politician photo op to a bin fire outside Tesco. Those days are gone, most regional MSM `journalists’ never leave their parents’ back bedroom. Fact.

Again, a GP nurse who spends most of their working week at one location isn’t commuting to a deadline to the extent a community nurse or podiatry specialist might be, so the risk is greatly reduced. Yet their occupation is classified as `nurse.’ It’s all too vague, too broad a brush.

Same with warehouse worker, not all are doing unsocial hours or parking their car on streets where HGVs are doing 3 point turns nearby, many workers vehicles will be in a secure compound whilst at work. Or they ride to work on a bicycle or scooter, in which case why should the occupation make any difference to the quote?

What IE is saying is that granular information has to be ingested before the quote can be incepted; credit history, job, exact parking locations work/home, service history, licence held, points etc. In the 2024 hybrid work culture surely the 2oth century definition of an occupation does not in itself raise the risk. Can we at least agree on that?

Oh and comparison sites; please delete parachute packer, turkey chaser etc from the jobs dropdown menu? It’s embarrassing. Here’s the word from Quotezone;

Warehouse workers top the list of popular jobs with higher motor insurance costs, coming in at nearly £400 more than the average.

Whilst the average annual premium is currently £984.56, a warehouse worker’s typical car insurance premium for the year is £1,371.67 – nearly 40% more.

Healthcare assistants working in hospitals, care homes, and clinics also face substantial car insurance premiums. Likely due to long shifts, high levels of stress, and frequent travel between different healthcare settings, these professionals can face premiums that are 36% above average.

Perhaps surprisingly, chefs can also be hit with pricey premiums (+30%), which might come down to them often working unsociable hours, having demanding schedules, and experiencing high levels of pressure in the professional kitchen environment. These factors likely show a correlation with increased accidents during risk analysis, which can lead to increased car insurance costs.

Insurance providers base their pricing models on statistical data that shows higher claim rates amongst certain professions, and jobs that typically involve long hours, high stress, or physical labour.

The insurance experts at Quotezone say the wording of specific job titles can often affect the overall premium price, so slight tweaks to the job title could actually help reduce premiums.

Drivers might want to try quoting with variations – they just have to make sure the title is still accurate and describes the job they do, as incorrect information could invalidate insurance. For example, “Healthcare Assistants” could try quoting with “Care Worker” or “Care Assistant” as their job title, as these professions may be seen as less risky depending on the insurer’s classification system.

On the other hand, the insurance experts found teachers, civil servants and even HGV drivers are typically quoted premiums as much as 41% less than the national average.

Teachers and civil servants are often viewed as low-risk drivers due to the nature of their work, as they’re associated with more structured roles and regular working hours, which can translate to fewer accidents and claims.

But it might come as a surprise that HGV drivers, who spend long hours on the road in large vehicles, enjoy lower car insurance premiums. This could come down to the fact they often undergo high levels of training and certification to operate HGVs, as well as the fact they have extensive driving experience.

Many of these drivers also spend their working hours in their company vehicle rather than their personal car, which further reduces their personal driving risk profile.

Retired people typically enjoy the cheapest premiums – as much as 50% less than the average.

A recent Quotezone survey showed a quarter of people (24%) weren’t aware their job title affected premium price, with 61% admitting they’ve never tried adjusting it to find savings – of those who have tried, 61% found savings.  Worryingly nearly a third, 31%, didn’t realise that an inaccurate job title could invalidate their insurance.

Commenting on the research, Greg Wilson, Founder and CEO of Quotezone.co.uk, said: “Our data sheds some light on how car insurance is calculated, and whilst it’s good news for teachers, nurses  and HGV drivers, it also raises questions for those in higher-risk categories. 

 “While statistical data is key to assessing risk, there is scope to explore potential savings,  helping customers understand their policy and their risks.  Quotezone are currently expanding their occupation options to give consumers more choice and hopefully more savings. 

“It is possible to bring your insurance premium down even slightly by trying variations of the wording in your job title. As long as it’s still factually accurate regarding your day-to-day role and responsibilities, it could help cut costs.”

Quotezone.co.uk data sample of 100,000 car insurance policies from Q2 2024.