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Shifting your gig means a potential change to your auto use and job title, which are both factors your provider uses to calculate monthly premiums. But there’s no black-and-white formula for tweaking job titles to get the best rates, and it’s just one of many factors that go into calculating your premium.
Changing companies within the same industry and career should have no effect your rates, and income level isn’t a factor in car insurance rates. But there are two main factors that could affect car insurance when you switch jobs: commute time and job title.
The distance you drive daily has a huge effect on your cost of coverage. For instance, if you work from home every day and mainly use your car for errands and social outings, your rate will likely be lower than if you switch to a job that’s half an hour away.
By law, insurance providers can’t consider your income when calculating rates. But they can use your title to determine the amount of risk you may incur. For instance, scientists, pilots and teachers tend to have lower rates because their jobs require greater attention to detail. But athletes, doctors and photographers, who tend to work in more chaotic environments, could get higher rates due to the likelihood of distracted driving.
Insurance companies may also factor your job level into calculating rates. So if you’re promoted from a bank teller to an executive in the corporate office, you may pay less overall because your perceived level of risk goes down.
It may not be fair, but one study conducted by the New York Public Interest Research Group found that on average, people in entry-level jobs with no college diploma were being charged 18% more annually than higher-level professionals who hold a diploma.
Have you changed industries or companies? Look for occupational discounts you might qualify for with your new job. For example, you might save 5% to 10% from some insurers for working in the education field. And some car insurers offer member or association discounts to employees of certain companies.
Get in touch with your provider to update your account. Be sure to discuss your change in title, if any, as well as how your estimated annual mileage could be affected. Methods include:
You could also take this as an opportunity to shop for a few quotes to compare what else is out there.
Chances are you’ve got a lot on your mind in the midst of this career change. But taking the time to let your provider know could save you money on monthly premiums. Remember to fill them in on:
Switching jobs can be both nerve-wracking and exciting. Insurance companies use complex algorithms to determine coverage, and may even consider what times of day you’re likely to be driving in addition to the amount of time you spend on the road.
The best way to find good rates is by shopping the market, no matter your job. To make sure you’re getting the best deal in light of your new gig, be sure to shop the market to compare rates.
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