This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Can Your Career Get You A Discount?

Question: I heard that car insurance companies look at your education level and occupation and that it's possible to get a discount if you have a certain type of job. Is this true?  What types of occupations receive discounts?  I'm trying to decide on a major and thought this would be good to know.

Answer: Yes, people in some careers will get a break on their car insurance rates or an outright discount. Is the discount big enough to switch majors for? Probably not.

If state laws allow, a driver's education and occupation may be considered as car insurance companies weigh rating factors that can help determine your annual premiums. 

The occupations that receive a discount on car insurance are those that have statistically shown to be less  risk to auto insurers --  typically this means the insurance company's records indicate that those working in these types of careers have filed fewer claims than those in other lines of work. (See “ 6 jobs that get car insurance discounts”)

The occupations that we typically see offered an auto discount include:
  • Teachers
  • Engineers
  • Firefighters
  • EMTs (Emergency medical technicians)
  • Police officers
  • Doctors
  • Nurses
  • Scientists
  • Military members

If your career won't get you a discount, it's possible that the company you work for, or other affiliations you have, will get you a group discount.  (See “ Discount for beer makers”)

Your occupation may also make a difference in what type of car insurance you need. For example, if you are an artisan who uses your personal vehicle for work purposes, you may need to upgrade to a business-use or commercial auto insurance policy.

Or, if you have a job where you transport goods for money, your personal auto insurance policy's coverages may be voided.  This means if you take a job delivering pizza to help pay for tuition, you would normally need to obtain a commercial policy.

Your level of education can also be taken into account by some insurance providers, possibly shaving your final premium.  A master's or doctoral degree may help bring down your car insurance rates even if your specific job type doesn't.

Insurance policy guidelines and discounts vary greatly from one insurance company to the next, so when shopping for car insurance ask what all discounts are available.  While the career path you end up on may not come with an occupation discount, you may still be eligible for plenty of others.  (See “ A guide to car insurance discounts”)

For instance, right now while in college you may be eligible to receive a good student discount that will reduce your auto insurance premium if you get good grades.  Or your parents may be able to get a discount on their rates if you are away at school. (See “ Discounts for young drivers”)

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs