Tuesday 20th April 2004

Just the Job

Insurance premiums vary wildly according to your occupation

---

The price of car insurance - for those of us that bother to insure our cars - is influenced by many factors, not least of which is your occupation.

Insurers place great importance on occupations when they assess risks: the list they work from is an industry standard, and what you do can have a big impact on what you pay. Telling them you’re a TV presenter when you’re actually a Travel Agent could cost you twice as much, and when they find out you’ve lied they’ll probably invalidate your cover anyway.

Insurance intermediary, the Allen and Allen Group has been researching the Association of British Insurers (ABI) occupations list and found some strange anomalies with vicars, traffic wardens and exotic dancers rated as risky as TV Presenters.

Allen and Allen set out to discover what a 21-year old male driving a Ford Focus would have to pay for comprehensive cover. The difference in rates was huge depending on the job he did. Down the bottom of the scale, with a premium of £911.32 were a respectable bunch including Dentists, Nurses and Vicars. At the top, paying £1888.30 was Footballers. Just behind, paying £1839.66 was Exotic Dancers and TV Presenters.

"The difference of nearly 100% based on occupation alone is staggering, and whilst insurers might consider a 21-year old Nuclear Scientist or Judge is a low risk, society might disagree ," comments Giles Ashley, Allen and Allen’s Project Manager.

"It is also interesting to see some of the other occupations the ABI thinks pose similar risks when behind the wheel of a car and the way it penalises them with premiums ," he added.

Here is a sample - the rates for the occupations listed are based on previous claims experience and potential payouts, which probably explains how in this example Gynaecologists, Nuclear Scientists, Dentists and Judges come out as low risks and Footballers come top.

Low Risk: Accountant; Keep Fit Instructor; Office Manager; Barman; Dinner Lady; Fireman; House Husband; Lavatory Attendant; Lorry Driver; Policeman; Royal Marine; Unemployed; Yacht Master; Zoo Keeper.

Medium Risk: Oil Rig Worker; Actor; Horse Breeder; Kissagram; Foreign Ambassador.

High Risk: Exotic Dancer; TV Presenter; Footballer.

"Our Profession Price Check contains an unlikely combination of careers and is only representative of the one risk examined. But it does illustrate the importance of thinking very carefully about how you describe your occupation for insurance purposes, and the importance of tying to be as accurate as possible ," says Giles Ashley.

"You may think, for instance, that a TV presenter would pose a similar risk to a Radio Presenter: the jobs appear similar. Insurers take a different view: the difference in premium is £647 in our example .

"But such a difference should not tempt a motorist to miss-describe their occupation, or to forget to tell their insurer if their job changes. If you lie about your livelihood and have an accident the insurer may well invalidate your cover – and that could prove very expensive ."

[se6b]

How the feck can 'unemployed' and 'barman' be catagorised as low risk?!?! If I put down my occupation I'm automatically assumed to be a potential drink driver as I work in the television industry....behind the scenes on a computer ffs! From now on I'm a 'computer operator' or 'house husband'.

[Mr Whippy]

It's odd, since I've been unemployed, and now I'm a graphic designer. I drove just the same then as I do now. No matter what job I've had I've driven about the same.

Does a job somehow get into your underlying driving abilities and make you more or less risky THAT much?

It's a bit unfair, since I'm sure Richard Whitely isn't a racing devil on the road like Mr Bean (Rowan Atkinson IRL) in his Mini.

Maybe insurers should judge each book by it's cover, and equal them out and go on no claims discount, rather than assuming the worst because of their job!!!

Dave

[ropey]

My girlfriend is an actress (not famous - not yet anyway!) and she was told that her insurance was more because as an actress she is more likely to have a famous person in her car, and therefore the insurance company may have to pay out a lot if something happened to said famous person.

Also, if she is in a show, and she has an accident, and cannot perform for a day/week/month, then the theatre/production company may claim damages on her insurance.

Just bloody excuses for charging them sh*t loads if you ask me!

[anonymous-user]

It would be very interesting to see the whole list in order.

I mean, I can describe my job as computer operator, computer programmer, IT consultant, web developer...

I'm never particularly consistent about how I describe it, I just aim it at what I think the expected audience might understand.

But, the question is, will giving one perfectly valid title work out advantageous over another?

[bigjimmy]

Well I'm a Double agent for MI6. Its a good job the cover comes with the car they provide (as well as a roof mounted mini gun).

>> Edited by bigjimmy on Tuesday 20th April 13:37

>> Edited by bigjimmy on Tuesday 20th April 14:05

[Alpineandy]

bigjimmy said:

Well I'm a Double agent for MI6. Its a good job, the cover come with the car they provide (as well as a roof mounted mini gun).

A double agent for MI6 and..... Prudential?
Couldn't you get the pru to do yr insurance and that'd save the tax payer.

[burriana500]

See, I would hazard a guess that as I work for an advertising agency I am being stuffed on my premium, as we all go out for 3 hour lunches, quaff copious amounts of alcohol, then take the clients out on benders every night of the week.... or not, as the case may be.

Now, as my official title is Head of Client Services, could I put myself down as an Office Manager, hence falling into a low risk category?

I think I might give it a go

[smele]

Better not tell my insurance company about my dancing down at the nightclubs.

Oh, I misread that; I thought it said idiotic dancing.

[chris_w]

Interesting that those least able to pay (the unemployed) are classed as low risk. Case of charging only what you think you can get away with methinks.

Not denying that occupation can have an effect, but where are the accident stats to back all this up?