Car insurance policies are partly judged on the type of job someone has and where they live to assess whether or not they are a low-risk threat of claiming on their cover. Some jobs will cause insurers to deem a motorist as a higher risk due to the amount of time they may be spending on the roads and at what times of the day they could be travelling.
Even small things such as a job promotion or a title change can have a massive bearing on how insurers perceive your risk and how much they charge for cover.
Someone driving long hours on the road at night will be perceived as having a higher claim risk than someone working in an industry that does not require a car to get around.
Matt Oliver, spokesman of GoCompare car insurance said: “Being lumped with a £1,000 fine by the DVLA for failing to change dress or job title is something few drivers would welcome, but the costs could stretch even higher when it comes to your car insurance.
“Forgetting to notify your issuer of changes to your circumstance, including your job or address, could result in you being refused when claiming on your insurance.”
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He added: “A change of job could see your title change, and certain job titles will carry higher or lower risk factors than others – so you would see your premium fluctuate to reflect this.”
Save money changing a job title
Changing job titles can have a positive effect on car insurance premiums for some motorists who may see their total costs tumble.
Even explaining a similar role differently could save hundreds of pounds over a year’s work of premium reductions.
Young people in education could make average savings of £677 savings by telling policyholders they are students rather than unemployed.
Social car insurance only covers a motorist for non-work related driving and is intended for trips to visit family and friends.
If your new job requires you to do regular long journeys to the office, motorists may need to switch to a social and commuting policy instead.
This policy provides cover for driving back and forth place of work as well as regular travelling to public transport hubs.
Business insurance cover is required for those who rely on their vehicle as part of their job selling goods or services.
The right type of cover is vital and road users who do not have the correct class of use could also see their policies axed.
Matt Oliver added: “Class of use tends to have a bearing on the level of risk you are deemed to an insurer, and can, therefore, affect the cost of your premium.
“Usually, for example, business users are considered a higher risk than social and domestic drivers, so you can expect the premium to be slightly higher.”