07 August 2024
What are car insurance occupation categories?
6 minutes
Car insurers will always ask for your job title before they give you a quote. But if you’re asking, “What are car insurance occupation categories?” you’ve probably already noticed that finding an accurate description of your job in an insurer’s list of options is often easier said than done.
Some UK car insurers might use a list of old-fashioned occupation categories that don't have more recent and relevant options. And because there’s no UK-wide list of job categories shared between insurers, you might have different options depending on where you look for a quote.
Two things are certain: your occupation category can affect the cost of your insurance, and it’s essential to choose the category that most closely matches what you do. Here, we explain the reasons why.
Why do insurers want to know your occupation category?
Along with information on your claims history, driving experience, and location, insurers use your occupation to assess your risk profile.
Essentially, they want to know what the chances are of making a pay-out if they insure your vehicle. The more statistically probable you are to make a claim, the more expensive your insurance premium will be.
Insurers base their risk calculations on all the data they’ve gathered on their customers over the years. This includes information on the number and types of claims made by people who work in different fields.
This data tends to show some professions— like hospitality workers, construction workers, and couriers — make more expensive insurance claims than others — like nurses, civil servants, and teachers.
How do insurance companies check your occupation?
You’ll have to tell your insurer what your job is when you first take out your policy. Generally, insurers trust that you’re telling the truth. They won’t contact your employer, for example, to check that you’ve entered your job title correctly.
However, insurers may choose to contact HMRC to validate the information you give them if you’re involved in an accident or have to make a claim.
If you make a claim and your insurer finds your current job doesn’t match the occupation category you chose, your insurance might be invalid. This can mean you’ll have to cover all the costs for repairs or compensation yourself.
What car insurance occupation categories are used in the UK?
When it comes to the car insurance occupation class list, there’s some variety between insurers. If you ask, “How many categories are there in car insurance?” you won’t get an answer that applies across the country.
Some insurers might have more specific categories, or options better catered to emerging industries, than others. Regardless of what your options are, you’ll always have to choose the most accurate occupation category from the list your insurer gives you.
For example, imagine you’re a social media manager choosing a job role from one of the more old-fashioned lists of occupations — the type that still includes “water diviner” or “charcoal burner” (yes, really). Your best option here might be to list your occupation as a marketing manager, or even as a writer.
Depending on the data the insurance company has collected on these job titles, there might be slight differences in the quotes you get. But your main concern should be choosing the category that best represents what you do. If you have more than one job, you should list both of them in your application so the insurer can give you an accurate quote.
Remember, if the insurance company later decides you picked a category that doesn’t reflect your role, they might not pay out when you need to make a claim.
If you’re not sure which category to choose, you might be able to contact the insurer’s customer service team for advice. An experienced broker can also help you.
What’s the best occupation for car insurance?
With car insurance costs still rising, questions like “What job makes car insurance cheaper?” and “Does occupation matter in car insurance?” are on plenty of people’s lips.
Data on the cheapest occupation for car insurance tends to vary between insurers, but it’s no surprise that jobs that require an advanced knowledge of vehicles, like mechanics, tend to have lower premiums.
Jobs that give you additional driver training — like bus or HGV drivers, or police officer positions — may also bring your insurance down. This is because the skills you learn on the job should put you in a better position to avoid an accident in your private vehicle.
People in administrative, account management, or design jobs may also have lower premiums. These roles don’t tend to involve much driving on the job, and many are remote or hybrid positions, so there’s less chance you’ll be involved in an accident.
While there’s no such thing as a “best occupation for car insurance”, your job can play a role in deciding your insurance premiums. It’s important to give an insurer the correct information when you first become a customer. You’ll also have to update your occupation information if you change careers.
The most expensive occupation categories for car insurance
The most expensive car insurance occupation categories are the ones where the insurer’s data shows that drivers tend to:
- Have a higher number of accidents leading to insurance claims
- Put their vehicle through more wear and tear
- Maintain their vehicle less thoroughly, so small issues become more serious
- Travel great distances, whether this involves long commutes or cross-country work trips
- Use their vehicle at peak or more dangerous times, like driving at rush hour or at night, when they’re more statistically likely to be involved in an accident
For example, a hybrid office worker with a short commute will generally pay less for insurance than a musician, who might travel long distances at night to get to and from gigs and could load their vehicle with heavy equipment. And people in executive positions might be more likely to drive a high-performance car, which will naturally come with higher insurance premiums.
Note: If you feel like your occupation is pushing up your insurance premiums and you don’t use your vehicle for work, it can be worth telling your insurer about your situation. For example, if you drive your car to your work as a plumber and then use a company van, you might be able to save money on the insurance for your private vehicle.
How does unemployment affect your car insurance premiums?
Insurers should also give you the option to enter “unemployed” when they ask for your occupation category. While you should still be able to insure your car while you’re unemployed, your costs might be higher.
There are a number of reasons for this. Unemployed people might have to drive more often to attend interviews, which can make them more likely to be involved in an accident. And when someone loses their regular income, they won’t necessarily have the money to invest in maintaining their vehicle, which makes breakdowns and expensive repairs more likely.
Put simply, unemployment is generally considered “riskier” in the eyes of insurers than some other occupation categories, so unemployed customers will probably pay more for their car insurance.
Other factors that affect your car insurance
Your occupation category is not the only thing your insurer considers when they’re working out your premium. While there will always be differences between job categories, there are a lot of other factors at play.
For example:
- Your age and driving experience: Younger, more inexperienced, or newer drivers generally pay more for insurance. On the other hand, older people are more likely to have built up a no-claims bonus and are less likely to be driving long distances or at peak times.
- Your claims history: Your insurance history plays a huge role in deciding your costs, as it shows insurers how safe your driving generally is and how you’re treating your vehicle.
- Motoring convictions: People with motoring convictions or points on their licence usually have to pay higher premiums than people with a clean record.
- Your vehicle: Your car’s make, model, age, and engine size all play a role in deciding what insurance group it’s placed in. Vehicle modifications can also make it more difficult to insure your vehicle.
- Your address: Some areas are more affected by car theft than others, so your address is also important for your risk profile and your car insurance quote.
- Your parking situation: You’ll probably get a better deal if you can park in a secure garage than on the street outside your house, where it’s far more likely your vehicle will be stolen or damaged accidentally.
- The type of insurance and level of coverage you want: For example, comprehensive insurance policies are usually more expensive than basic third-party cover, which is the minimum legal requirement to drive on UK roads.
- The other people named on your insurance policy: If you’ve just passed your test, you might get a better deal if you’re added as a named driver on your parent’s insurance than if you have a policy of your own.
If you want to lower your insurance premiums, it’s often more effective to look at one of these factors than it is to tinker with the way you describe your job. Choosing a vehicle with a smaller engine, for example, will probably have a more dramatic effect on your premiums than listing yourself as a copywriter rather than an advertising professional.
Car insurance occupation categories: Quick summary
Finding a car insurance occupation category that exactly matches your role can be easier said than done, especially if you work at a start-up, in a technical field, or in digital media. It’s important to enter your job title as accurately as you can with the categories your insurer provides, even if you can’t find an exact match.
If you choose a different job category to try to lower your premium, or if you don’t update your job category if you switch professions, your insurer might not accept your claim if you have to make one.
Still have questions? The experts at Howden are here to help you find the best deal for your car insurance, whatever your occupation. Contact us today.
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