Does my job mean I pay more for car insurance?

In 2020 UK based publisher Motoring Research did some digging on how job titles affect car insurance. Their findings revealed that drivers, chefs and hairdressers were usually hit with the highest premiums, while mechanics, administrators and designers were charged the lowest.

We were curious to see whether the same rules apply for car insurance in Australia, so we did some investigating.

Does occupation count?

Every year our Mozo research team gathers car insurance quotes from multiple providers for the Mozo Experts Choice Car Insurance Awards^. For the 2020 awards, the experts assessed 66 different car insurance policies and collected over 10,000 quotes.

During this research the team didn’t notice that occupation was a factor taken into consideration, when calculating car insurance premiums. So while in some countries car insurance providers will ask for your employment status and job title to estimate costs, it doesn’t seem that this is the case in Australia.

That said, when you apply for car insurance the provider is likely to ask how you use your car, whether that be for:

• private use and/or commuting to work
• private and occasional business use
• private and business use.

If you use your wheels solely for business purposes, you will have to take out business or commercial car insurance. 

Driving for work purposes

So to recap: in Australia, most providers won’t ask you for your occupation unless you state that you specifically use your wheels for business purposes. In this instance you will usually be asked whether you use your car as a taxi, as part of a rideshare service or to deliver goods.

If you do make money as a rideshare driver, you may have to seek out cover specifically for ridesharing. Some insurance providers that offer this include:

• ANZ
• Bingle
• Carpeesh
• RACV
• Woolworths

It should also be noted that if you do use your car for work purposes your insurance premium may be slightly more expensive. This is because you are likely to be on the road more, meaning the chance of you being involved in an incident is higher.

Feel as though you’re paying too much to protect your wheels? Read our guide, how to haggle on your car insurance to see if you could get yourself a better deal.

Or if you’re thinking about switching providers altogether, take a look at the policies below to see what else is out there.

^The Mozo Experts Choice Awards are conducted every year across a range of financial product categories. The main aim of these awards is to highlight products available in the Australian marketplace, that Mozo believes offer great value. Check out the methodology report for the 2020 Mozo Experts Choice Awards for Car Insurance, to read more about these particular awards.