Have you tried this ‘trick’ to lower your car insurance?

Are your car insurance premiums leaving you out of pocket? This one trick could help lower your car insurance costs significantly.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

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Car insurance can be expensive. But did you know that you might be able to significantly lower your annual premiums simply by tweaking the job title included in your application? Here is what you need to know.

[top_pitch]

How does your job title affect your car insurance?

Your job is one of the key considerations that insurers use to calculate the cost of your premiums. It gives them key information about what you do and how you might drive.

Insurers typically have data on specific job titles and associated driving habits and choices. Some jobs may be associated with a type of driving that has the potential to attract more claims. If for example, your job title appears frequently in historical claims data, you will most likely be charged a higher premium.

Your job title is not the only factor that can influence your insurance premiums, however. Other key factors considered include:

  • Your address
  • The type and make of your car
  • Your driving history and that of anyone else named on your policy
  • Where your car is parked at night (in a garage or on the street)
  • Other named drivers on your policy
  • Your accident history and that of others on your policy

Which job titles are most expensive for car insurance?

According to car leasing company Vanarama, these are the 10 job titles with the most expensive car insurance costs in 2021.

Rank

Job role

Average insurance premium

1

Recruitment consultant

£815.24

2

Designer

£776.51

3

Social worker

£713.80

4

Counsellor

£713.80

5

Physiotherapist

£507.07

6

Midwife

£507.07

7

Nurse

£507.07

8

Hairdresser

£505.90

9

Senior manager

£498.02

10

Store manager

£498.02

 

As you can see, recruitment consultant is currently the most costly job title for insurance according to Vanarama. The data from Vanarama shows that the premiums for this occupation have more than doubled from nearly £350 last year to over £815 today.

Which job titles are cheapest for car insurance?

These are the ten job titles with the cheapest car insurance costs in 2021 according to Vanarama.

Rank

Job role

Average insurance premium

1

Developer

£326.41

2

Programmer

£326.41

3

Software engineer

£326.41

4

Web developer

£326.41

5

Web designer

£326.41

6

Software developer

£326.41

7

Barrister

£355.45

8

Personal assistant

£358.27

9

Secretary

£358.27

10

Driver

£374.31

 

[middle_pitch]

Can you lower your car insurance costs by changing your job title?

Yes.

Usually, when declaring your occupation during the application process, an insurer will ask you to choose from a list of pre-defined job titles. A slight tweak could make a big difference to the quote you receive.

As Andy Alderson, CEO and founder of Vanarama says, “If you’re facing higher insurance premiums, small changes to your driver’s details can help.”

Alderson recommends that you “try inputting alternatives that still match your role but offer cheaper premiums.”

For example, instead of ‘chef’, you could try a title like ‘kitchen worker’ or ‘cook’ and see how it affects your premium. Instead of saying you are unemployed, you could say you are a ‘housewife’, or a ‘full-time parent’, and so on.

Of course, you must be truthful and reasonable when you are making your application. Don’t be tempted to lie and select a role that is not related to your occupation just to save on your premiums. Lying could invalidate your car insurance policy and lead to accusations of insurance fraud.

You can use this tool on the MoneySavingExpert website to find some potential (and legal) job title alternatives that could possibly help you save money on insurance.

What if you have more than one job?

If you have more than one job, you must inform your insurer about both. They will most likely concentrate on your main job, where you spend the majority of your time. If you are creative on that front, you can still make savings on your premiums.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

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