Car insurance premiums have long varied depending on personal details, but a new insight shared by financial expert Martin Lewis highlights a little-known factor: the precise wording of your job title. While most drivers are aware of how age, postcode, and driving history affect their rates, few realise that choosing between similar job labels could have a measurable financial impact.
Speaking on his ITV programme The Martin Lewis Money Show Live, Lewis discussed how insurers interpret professional titles, noting that even subtle differences in terminology can change the cost of cover. He urged viewers to be accurate but strategic when selecting their job title during online quotes.
Insurers Judge Risk Based on Job Titles, Not Just Jobs
The underlying reason for these price differences lies in how insurers assess statistical risk. Insurance companies do not just look at what job someone does, they analyse vast datasets to determine how people with particular job titles tend to behave on the road, and how likely they are to make a claim.
According to The Independent, Lewis pointed out that the job title “beautician” returned higher quotes than “beauty technician”, despite the two roles being practically identical. The discrepancy, he explained, comes from how insurers’ algorithms classify risk, not from the actual duties of the role.
“You must make sure you change your job title legitimately,” Lewis cautioned, adding that it is legal to adjust your job title only if both descriptions accurately reflect your work. “If you’re an office administrator and you want to say you’re a driving instructor as it’s cheaper, this is simple fraud,” he warned.
The price difference can sometimes reach hundreds of pounds a year. This tactic, while legal when done correctly, is frequently overlooked by consumers who take their job title for granted or rely on the default suggestion in comparison tools. Lewis encouraged viewers to try variations of their title when obtaining quotes, provided that all options truthfully describe their employment.
Legal Boundaries Remain Clear, and Crossing Them Is Fraud
Despite the potential for savings, Lewis repeatedly stressed that job title adjustments must stay within legal and ethical limits. Insurers expect honest declarations, and providing inaccurate or misleading information, even inadvertently, could result in invalidated policies or refused claims.
According to The Independent, Lewis used his platform to emphasise that this advice is not a loophole, but rather a matter of understanding how the industry classifies occupations. The goal is not to trick insurers, but to choose the most accurate and cost-effective term available.
It remains the responsibility of the policyholder to ensure that any declared job title truthfully represents their employment. Failing to do so not only puts the policy at risk but can also lead to legal consequences.
Consumers are encouraged to check comparison sites and experiment with permitted variations of their title before finalising a policy. This advice joins a broader set of tactics Lewis has long advocated for, such as shopping around annually and avoiding automatic renewals, in helping consumers cut down their living costs.
