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A high-risk occupation for car insurance is any job that makes an individual more likely to file a claim than the average driver. Some of the highest-risk occupations for car insurance are doctor, lawyer and chef because of their long, irregular hours and high stress levels. Other jobs, like driving for Uber or Lyft, also are high-risk because they revolve around being in the car all day, which increases the likelihood of an accident. And even though being a waiter or bartender might seem innocuous, the late-night hours in the proximity of drinking and parties puts them high on the list, too.
While a driver’s occupation is just one of many factors that insurance companies consider when assessing risk (in some states), it can have a noticeable effect on premiums. An insurance company’s risk assessment of an occupation involves a mixture of statistics on driving behavior, travel patterns, and locations. They also take into account factors like stress level, potential for distractions and whether the occupation involves the safety of others.
Examples of high-risk occupations for car insurance:
- Rideshare driver
- Waiter / Bartender
- Chef
- Doctor
- Lawyer
- Social worker
- Salesperson
- Business executive
While auto insurance companies’ risk assessments might work against some occupations, they’re more favorable to others. In particular, jobs that revolve around the safety of others or require close attention to detail are more likely to be deemed lower-risk. Scientists, pilots and teachers are just a few examples.
Although factoring drivers’ occupations into car insurance premiums is a relatively common practice among insurance companies, it is currently banned in California, Georgia, Hawaii, Massachusetts and New York. This is the result of growing pushback against the practice in recent years from those who claim it’s discriminatory. Since many high-risk occupations pay little and don’t require a college degree, some argue that charging individuals higher premiums based on their job puts an undue burden on low-income drivers.
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