When insurance companies receive requests for quotes, they will need a lot of information before they can calculate premiums for auto insurance coverage. As they gather the right information, they may ask you about your education level and job. If you are wondering why they want to know these things, you should realize that it is because many insurance companies factor these things into the costs of a person's car insurance coverage. Here are several things to understand about the effects that your job and education level may have on your insurance rates.
How education level affects rates
According to the information insurance companies use, people with lower educational levels are considered higher-risk drivers than people with higher educational levels. This means that a person with a high-school diploma has a higher risk of filing a claim than a person who received a college degree. What this means is that the amount of education you have may play a role in the rates you pay. If you want the best rate, in this category, you would need a college degree.
How job affects rates
When it comes to your job, the work you do can also play a role in the amount of money you pay for auto insurance. There are certain types of jobs that are considered lower-risk jobs than others. If you have a job that is in the low-risk category, you might pay lower rates for your insurance than if you had a job that is in a high-risk category.
If you work as a teacher, pilot, or nurse, you will be placed in a lower-risk category in terms of job. If you work as a doctor, lawyer, or athlete, you may pay higher rates, as you will be placed in a higher-risk category.
Other things to know
It does not make a lot of sense to switch jobs just to qualify for a lower insurance rate, but there might be certain things you can do that would help you save money. For example, you might be able to save some money by taking a defensive driving course or by reducing the mileage you drive each year.
It is always a good idea to understand how insurance companies calculate risks and insurance levels, simply to have a good understanding of how your rates are determined. To get a quote or learn more about coverage, contact an auto insurance company.