Is Your Job Costing You More on Car Insurance? Some Occupations Can Raise Rates

Car insurance companies use a ton of information to determine how much you'll pay each month. While most of the factors are pretty obvious -- like your accident record, age, and the type of car you drive -- less obvious factors can also impact your car insurance rates.

Did you know your job can impact how much you pay each month? It's true. If your job is associated with higher risks on the road, you could potentially pay more on insurance premiums.

What jobs are considered higher risk and lead to higher premiums?

Each insurance company uses different algorithms to determine how much drivers pay, so not all insurance companies may consider every job on this list as a higher risk. In general, jobs that require you to drive under stress or while tired can lead to higher premiums.

Here are a few examples of higher-risk jobs that could lead to higher car insurance rates.

• Delivery drivers: If you drive for ride-hailing apps, restaurants, or grocery delivery services, you'll likely pay higher rates. You're likely to be on the road more than average and drive in heavier traffic, which can increase the likelihood of an accident.
• In-field sales professionals: If you're in sales and drive to see potential clients, you could pay more, as you're more likely to spend more time driving and may drive long distances.
• Professional entertainers or athletes: Those who work in entertainment or as professional athletes are more likely to have an irregular schedule and could end up driving late at night or early in the morning when fatigue can increase the risk of accidents.
• Construction workers and tradespeople: Construction workers and tradespeople, like plumbers or landscapers, often travel to different job sites, sometimes carrying tools or materials that add weight to the vehicle. The frequent driving and varied locations can increase risk.
• Real estate agents: Like in-field sales professionals, real estate agents often drive long distances to meet clients or show properties, increasing their time on the road and their exposure to potential accidents.
• Medical professionals and first responders: Doctors, nurses, paramedics, and firefighters have critical jobs in our society but also tend to have irregular schedules and long shifts. Fatigue from long hours or rushing to emergencies can lead to a higher likelihood of accidents and higher car insurance rates.

Looking to lower your car insurance rates? Check out how much you could save with the best car insurance companies.

Another job commonly mentioned as having higher rates is military service. Based on my research, military members do not inherently pay higher rates for car insurance. However, factors like age, distance driven, and the type of car do.

A young man in the military with a sports car and a long commute will likely pay higher rates, but not because he's in the service. Also, many car insurance companies offer a military discount.

How to lower your car insurance rates

Drivers who work in one of the high-risk professions we just discussed can take steps to lower their car insurance rates. First, make sure to compare rates and shop around at least every two years. Our list of the cheapest car insurance companies helps break down the top options.

Next, make sure you're getting all the discounts you're eligible for. While they can vary by company, most car insurance providers offer lower rates for electric vehicles, if you drive less, take a defensive driving course, have good grades, add safety features, or serve in the military.

Also, ensure you have the right level of coverage. Drivers who have more coverage than they need could be paying higher premiums with little potential return. If your deductible (the amount you'll pay before insurance kicks in) is less than $2,000, consider raising it. In many cases, it doesn't make sense to file a claim (and increase your premiums!) for a minor accident that costs less than $2,000 to repair.

By shopping around, maximizing discounts, and raising a policy deductible, drivers could save thousands of dollars a year, no matter where they work.