Do auto insurance companies check employment status? [Expert Advice + Rates]

Some car insurance companies check employment status, which can affect your rate. You can get affordable auto insurance for around $92.67/mo. in the U.S. on average if you're a good driver.

Free Auto Insurance Comparison

 Secured with SHA-256 Encryption

Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates...

Full Bio →

Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance...

Full Bio →

Reviewed byDaniel Walker
Licensed Insurance Agenthttps://res.cloudinary.com/quotellc/image/upload/insurance-site-images/aiorg-live/d98a9f52-daniel-walker.png

UPDATED: Jun 18, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to Remember...

  • Insurance companies do not typically ask for employment information, but they may for some specific reasons
  • You may need to provide employment information to qualify for auto insurance discounts regarding your employment or to validate your identity or contact information
  • Some insurance providers may base your premiums partially on your income since this is a factor in your ability to pay your premiums
  • You can find affordable full coverage auto insurance for less than $92.67/mo if you’re a good driver

To be considered for insurance, there is a certain amount of information that most insurance providers need to process your application.

They need to establish who you are, where you are located, and they must have access to your driving record to make a valid decision on your premium amount. Many factors go into this ruling so the more information they have, the better.

Do auto insurance companies check employment? Does your occupation matter on car insurance? You can get coverage without verification of employment status for car insurance, but you may need other information to verify your identity. And while some auto insurers may penalize you for your job, others do not.

Does employment status affect car insurance? If you’re unemployed when you apply, you may be looking at higher premiums until you get a job.

This is why car insurance companies ask about your job. Some occupations are considered higher-risk which means rates are more expensive.

Enter your zip code above to get FREE car insurance quotes. Begin comparing several top insurers in one click, as your job will determine the rates differently for these insurers.

Is your auto insurance rate based on your income?

What do auto insurance companies check? Here are the basic types of information that insurers usually ask for when you apply:

  • Name, age, address, and date of birth
  • State of residence, make, model, and type of car being insured
  • Social security number and other identifiable information
  • VIN number of car (can usually be done by the insurer online)

Will my car insurance go up if I am unemployed? While they do not normally ask for employment status for car insurance, in some cases, it is required. If you do not want to provide information regarding your employment, or if you are currently looking for auto insurance for unemployed drivers, simply tell the insurance agent this when you apply.

In some cases, your premiums are based in a small part of your income. Insurance providers, like any other company, have to consider the income-to-debt ratio and your overall ability to pay.

They need to keep premiums paid each month to keep their reserve stable for all customers.

While most companies deny that they base premiums on income, a study by the Consumer Federation of America found that Geico charged drivers with a high school education more than those with a college degree.

Based on this information, it’s easy to see how employment could be figured in as a factor.

Your job does affect car insurance, as you can see in this car insurance occupation list. The examples below show that your occupation will certainly change your rates.

Geico Average Monthly Auto Insurance Rates Based on Occupation
OccupationsGeico Average Monthly Rates
Homemaker$67.92
Professor
w/ College Degree
$71.68
Military Officer$139.47
Psychiatrist$145.25
Military$145.85
Administrator$151.00
Surgeon$152.80
Student$157.98
Machinist/Toolmaker$159.87
Barber/Beautician$161.72
Currently Unemployeed$165.33
Chef$173.15
Get Your Rates Quote Now

What’s the best occupation for car insurance? It really comes down to how much risk you are to the insurer’s interest, and the best job for insurance appears to be homemakers, who provide the least risk.

Some occupations are considered more high-risk than others. And what about contractors? Does being self-employed affect car insurance? It can if a car is needed for their job, but typically insurers base rate on other things.

Do car insurance companies run background checks? Your coverage is based far more on other factors rather than your career. This video from Allstate touches on some factors that go into determining your premiums.

Your credit score, driving record, and even location are more important to determining how much you pay.

Free Auto Insurance Comparison

Enter your zip code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

What auto insurance discounts are available for my job?

One example of when an insurance company might ask for employment information is to qualify you for an employee or professional discount.

Companies like Geico, Liberty Mutual, and others allow for auto insurance discounts if you work in certain professions such as civil defense, county government, or even education in the public schools.

If you apply for this discount — or any of the more unusual discounts— you will need to supply adequate information to prove that you qualify for this discount.

The types of data they may need include:

  • Your title or status in the company or organization
  • How long you’ve been with the company
  • Your estimated salary or wages (on average)
  • Address of your employment
  • Supervisor’s name

There may be additional information that is required.

The Amount of Information Auto Insurers Ask Changes by the Company

Not all companies will ask for all of this information. However, this depends on the amount of the discount you are applying for and the types of careers the company honors.

Geico started as a government employee company in Washington D.C. and only allowed you to be covered if you worked in a government job.

Since their beginning, however, they have opted to include a wide variety of other careers, including self-employment and entrepreneurship. Other companies have also offered this and continue to do so. Inquire about this with our online agent when you get your quote.

Another reason an insurance provider might ask for your employment records is if they feel you are not telling the truth or to validate your identity.

Due to the recent concerns over illegal immigration and terrorism in the U.S., all companies have had to exercise due diligence regarding transactions with unidentified persons of any nationality, including the U.S.

If the company needs more information on you or needs to validate your contact information, they may ask for your employment information as well.

Free Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

Be Honest with Auto Insurance Companies

No matter what the situation, you must always be honest with insurance companies. For example, lying about your address on our car insurance application, during a claims filing process, or any other context constitutes insurance fraud.

Insurance fraud is a serious offense and can carry both civil and criminal penalties.

A study by the Insurance Research Council (IRC) notes that between 15 and 17 percent of all bodily injury auto insurance claims were fraudulent in 2012. That’s between $5.6 and $7.7 billion that were fraudulently paid out.

Being honest with insurance providers is the ethical thing to do, besides being required by law. Aside from that, it is also to the benefit of all customers of the insurance company that everyone is honest.

If even one person lies on a claim form or application, it can affect the overall insurance premiums of everyone on the policy, in theory. You may not see these results for a long time until the insurance company sends a notice to all of its customers that rates have been raised.

These external factors can influence your premiums, so it is to everyone’s advantage that you remain honest with your insurer.

The best way to make sure that you get the best insurance plan for your needs is to shop around and compare. Talk to the online agent and ask for a free quote.

Then get your information together before you apply. It will make the application process much easier if you have everything ready ahead of time.

Free Auto Insurance Comparison

Enter your zip code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Look at the Fine Print On Auto Insurance Policies

By asking the right questions and comparing the different policies, you will have a better understanding of which company and coverages will best meet your needs. Start by browsing the site and ask your online representative to help.

Providing your employment information may speed the process along a bit faster when applying for auto insurance. While it is not always required, it helps the insurance companies identify you more quickly and aids them in the application process.

It can also help you qualify for discounts that you might not otherwise have access to.

Remember, whether it is during the application process or a claims process, it is best to be honest and straightforward with the insurance company to get the best deals possible from the company that you choose.

Begin your comparison search today by entering your zip code below and get multiple free quotes for the best coverage for your job today.

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption