Car insurance scandal as care workers hit with highest annual premiums

Richard Aucock, Contributor
Tue, 30 Jul 2024

Care workers have the job title that is hit with the biggest car insurance premiums, shock new research has revealed.

Despite having an average annual salary of just £23,400, the average annual car insurance quote for a care worker is a staggering £584 – representing a whopping 2.5% of their annual salary.

This is the largest amount of all career roles, and is compounded by care workers receiving the third lowest average annual salary.

Independent Advisor Car Insurance found that delivery drivers had the job title with the second highest annual insurance quote, at £583. With an average salary of £25,600, car insurance for delivery drivers takes 2.28% of their salary.

Another key healthcare role, nursing professionals, face the third highest annual insurance quote, at £565. However, because their average salary is £38,000, this means nurses ‘only’ lose 1.49% of their total income.

Financial advisors have the fifth highest car insurance premium of £552 – and because they have an average annual salary of £70,000, this accounts for a mere 0.79% of it – far lower than for care workers.

The top 10 jobs with the highest average annual insurance quotes are dominated by popular jobs, with customer service advisors, sales and retail assistants, warehouse operatives, managers and wage clerks all facing hefty premiums that account for up to 2.5% of their take-home pay.

In contrast, graphic designers have the job title with the lowest car insurance premium. They pay an average of £488 a year, almost £100 less than care workers, although with an average salary of £26,600, this still accounts for 1.83% of their pay.

LGV drivers, executive assistants, software engineers and account managers also rank in the top five job titles with the cheapest car insurance.

"Insurance companies always take your occupation into account when calculating your premium," says car insurance expert Connor Campbell, who explained it’s one of the biggest hidden pitfalls in driving up car insurance prices.

"While it is extremely important not to lie about your job, it could be worth testing different variations to your job title and industry sector. Many jobs can be described in multiple ways, which in turn, could lead to different prices across various insurers," he adds.

Car insurance prices have risen by 18% in the past 12 months – and online searches for ‘why is car insurance so expensive’ have gone up 180%.

Ask HJ

Does having more than 9 years no claims bonus lower your insurance or is that the limit?

I have 29 years no claims bonus gained through various insurers and supported by Proof of Bonus documentation. In my experience most insurers, or quotes via online comparison sites, state their maximum allowed bonus is 9+ years. Whether or not any additional discount beyond 9 years entitlement is applied to the policy, the actual accrued years must have some bearing on the premium. The policy application process via unsuitable binary questions, or by unconvincing online chats/emails with Customer Service Representatives, can be contradictory and unhelpful. Is there any official guidance for clarity?

The amount of no claims discount applied by insurers can vary - some may categorise it as ‘9+ years’, while others may do ‘25+ years’. But your driving experience and the number of years you’ve held your licence also plays a factor in how much you pay for your car insurance. So experienced drivers will benefit from better pricing, even if your insurer caps your discount at a lower threshold than others.

Answered by Louise Thomas

More Questions