If the premium of a House wife or House husband is £1,053.80 then a Foster Carer would pay £1,289.50, with a difference of £235.70. Looking at this shows how deep the involvement of actuarial ‘science’ is within the motor insurance. There seems to be a distinct lack of common sense in the rolling out of these mathematically statistics in the real world and the actuarial analysts seen as seen to be showing how far statistics can predict the outcome. As most foster carers I know are unlikely to list their job as an actual foster carer, more than likely any other job they may do, or housewife/house husband. The one thing an underwriter can’t do is tell the difference between one job to another.
The big problem with this science is how do you define your actual job title? Every job role has a wide variety of what it is actually called as very few people have a definitive single job and a specific title in the modern workplace. Looking at the figures it did make me wonder if Underwriters actually call themselves Actuaries to save £10.80.
You can understand a wider range of variation in premiums for a vehicle with different job roles if it was to be used for work, but for many they would be used as a general personal vehicle. So surely the actual job role should make a minor difference. Here are some sample prices and I have used £1,000 as a base rate as it is easiest to use and shows the spread of how insurance can vary.
|Job Role||Quote||% Change||Job Role||Quote||% Change|
Above shows a variety of prices from opposite ends to show the spread of premiums with different job role. It is understandable that a police officer probably has received additional driver training to allow their discount, but I would hate to imagine what a Musician or Radio Controller does with their cars to demand such a higher rate.
The reality is that I am cherry picking extremes and the main theme of this post is quite simply to show the variety within similar roles. The house wife and the foster carer is a prime example of this. In my own job I could well be described as:
I fulfil all of those roles and if I had a personal vehicle insurance policy then I would be choosing the one that cost me the least. I think there needs to be a bit of a reality check in the motor insurance industry and possibly look at have a lot less job roles to compare with. Many of the roles listed could easily be reduced down, the reliance on how much your job role impacts on the premium is just one part of the process, but can be a significant part of it as shown. There is clearly significant statistics to back up how must extra risk each job has, but when it goes so much in depth many people could select several different titles without even thinking. What happened to common sense? Or does that have to be removed before you become an actuarial analyst or underwriter?
There has been a significant rise in the number of false claims made through the insurers and is quoted to cost each premium an extra £40, but think about what job you actually perform and it may save you £40 or more.
I have compiled all the jobs in a table so you can browse rather than using the search tool on Money Saving Expert and can show you how much variation there is from top to bottom and across industries.
Before you next insure your car check to see what is your job role on Money Saving Expert.
As a curiosity you may also want to look to see how your address impacts your insurance premiums with this postcode checker