3 Ways A Job Change Can Affect Your Auto Insurance Rates

Posted on: 30 October 2014

When you change jobs, you may not think about how it could affect your auto insurance rates. Depending on the changes involved, you may end up paying more or less than you were previously. In general, these are ways in which your new job could change how much you pay for car insurance:

1. Affinity discounts

Some car insurance companies offer what are known as "affinity" discounts. They vary from insurer to insurer, depending on the business relationship they have with particular organizations.

Some may offer a discount if you belong to a particular organization, such as your state's bar association or dental hygienist association.

Others offer a price beak if you're a graduate of a particular college, so if you've furthered your education before your job change, check to see if you're eligible for any discounts.

2. Professional or alumni organizations

Your profession can affect more than just your paycheck. Auto insurance companies may use your profession to help determine your risk of causing an accident, which affects your rates.

Some of the occupations that can be subject to higher rates include lawyers, doctors, salespeople, business owners, and real estate agents. Generally, these professions can involve high levels of stress, long work hours, and travel to meetings and appointments.

On the other hand, teachers, nurses, and scientists often don't have these risk factors. Additionally, people in these professions tend to be precise and detail-oriented – qualities that may make them safer-than-average drivers.

3. Commuter or business mileage

If you have a long commute to work, this could adversely affect your car insurance rates. The more miles you drive, the more likely you are to be in an accident. And if you're commuting to a large metropolitan area with a lot of traffic jams, this can also increase your risk.

Conversely, if your commute is greatly reduced, it could lower your rates. If you decide to telecommute, use public transportation, or carpool regularly, this could lower your rates.

If you use your car regularly for work, your new employer may require that you have a particular level of liability coverage. This helps protect the company if it's sued because you cause an accident while you're driving as a part of your job. If you've had lower liability coverage, you'll need to increase your limits.

Changing your job can affect your life in many ways, including the rates you pay for auto insurance. Check with your insurance company to see what changes you may face based on your particular circumstances.

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