A recent study has revealed that a policyholder’s job may be directly linked to how much they pay for auto insurance. According to Quality Panning Corporation (QPC), which conducted the study, a driver’s educational attainment, as well as current occupation, may be the blame for higher premiums in certain states.

The study looked at the direct correlation between higher premiums and a policyholder’s occupation. The results found that many insurers use scientific research and statistical data to look at the risks associated with certain occupations, which in turn helps them determine premiums.

However, the research found that in many cases higher premiums were not linked to risks – or the actual accidents – caused by members of certain professions. For example, while students ranked number one out of 10 occupations linked to the most accidents – and paid higher premiums on average – doctors ranked number two on the list and averaged significantly lower premiums.

Some analysts believe that this discrepancy is an indicator that there is a shift occurring in how companies are delegating premiums. In other words, instead of looking at accident risks per occupation, the companies may be looking at files claimed per occupation. This would account for the lower premiums for doctors. Since they have additional money to pay for out-of-pocket expenses than a student, the files claimed may be lower, thus resulting in lower premiums.

Experts suggest that a good way to help decrease your own premiums – or at least anticipate rising costs – is to not necessarily switch professions, but instead take time to understand how the industry determines premiums. Of course, getting out there and comparison shopping in favor of affordable premiums can’t afflict either.

Have you noticed a significant difference in auto insurance premiums between you and a friend of a different profession?

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