Your Job can be a Factor in Your Auto Insurance Rate

Your car insurance rate can be figured with different variables like driving record, car value,credit, age etc.  Many are not aware that what one does for a living can have a bearing on this as well.  Now not all insurance companies engage in using jobs in figuring auto insurance rates and some states as well as consumer groups do not look kindly upon this practice.

The reasoning that goes into using job as a rate factor comes from a statistical viewpoint.  Its looked at that if you have a highly strenuous job, drive constantly or otherwise others that have your job have a high rate of claims than it should raise your auto insurance premiums.

Some examples of job positions that are looked at as low risk by insurance companies are scientists, librarians and most performers of the arts.  On the other side occupations looked at as higher risk are lawyers, stock brokers and executives.

In New Jersey there was a bill proposed to ban this practice though it never got debated.  Consumer groups have come out against using job to determine rates.  Even so it is at this point legal for insurance companies to use your job as a determinant in your auto insurance.  This doesn’t mean that you can’t shop around to find a companies not using it;  in fact I’ve heard commercials from companies explicitly saying that they don’t engage in this practice.

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