We have mentioned in an earlier post that significant life changes could affect your car insurance. We have also discussed one of the most significant life changes – a change in your marital status. In the Blog post titled “Changes in your marital status can affect your car insurance”, we have revealed how getting married or getting divorced could increase or decrease the amount you pay towards having your car insured.
Your Job/ Occupation and Car Insurance
The relationship between your job / occupation and car insurance is perhaps less obvious to most. It is however a factor to be considered by car insurers as it does provide an indication as to the amount of time you will be spending on the roads.
We have also shared some interesting insights on this topic in an earlier post titled “Which occupation has the worst drivers?” The answer to this question revealed some interesting findings from a UK insurer when analyzing accident claims and the occupations from the claimants. A similar study in the US revealed somewhat different results and even found that lawyers tend to be frequent claimants!
How does a change in occupation/ employment affect your car insurance?
We could answer this question only be getting back to the basics of car insurance. One of the material facts to be disclosed to the car insurer is the purpose for which the vehicle will be used. There is an important difference between whether the vehicle is to be used for personal and business use.
Once it has been made clear that the vehicle is to be used for business use, it becomes important in the risk assessment to categorize the use of the vehicle in a specific industry and the amount of exposure to risks on the road.
A medical sales representative would be on the road far more than the doctor or surgeon spending most of his time in the hospital theatre, only driving home after work. It is only logical that the increased risks of exposure on the road should be reflected in higher insurance premium. In the same manner that it is much more expensive to purchase life cover for a truck driver –it should be more expensive to find car insurance cover for someone that is on the roads most of the time.
Advice to vehicle owners changing jobs/ employment
In this tough economical climate, it is a blessing to have a job – and a risk to resign before having a new job lined up. The affect that a change in occupation might have on your car insurance premium might be the last thing on your mind. It is however important – not necessarily from an insurance premium point of view – but rather when considering the disclosures required from the vehicle owner / policyholder.
It is very important to communicate life changes such as the change in job / occupation with the car insurance company so that the insurer can update your details and confirm whether there is a change in premium.
It might well be that there is no change to our car insurance premium – but you will have the peace of mind that you are not in breach of contract and have made all the necessary disclosures!
Should you be in a “higher risk occupation”, but your daily activities do not necessitate much driving, this also needs to be communicated to ensure you are not paying too much for your car insurance premium.
You could also consider Pay as You Drive car insurance to reflect a fair premium for the reduced mileage that you travel!
We would like to urge all vehicle owners to check whether their car insurance profiles are updated. Do not risk having your car insurance claim challenged on the basis of inadequate disclosure!