Is Car Insurance For People Not In Employment More Expensive?

May 5th, 2020
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Like any motorist knows, car insurance is not cheap. However the expense of car insurance can be more expensive for people not in employment.

A report from the BBC recently highlighted that the jobless were typically pressured to pay greater amounts for car insurance than those working full time. In fact, BBC’s study with three brokers established that, although car insurance premiums were typically 30% more for those without work and in some case, as much as 63% greater.

This occurs at a time when unemployment levels in Britain are particularly high – and when a vast amount of those without work are finding it difficult to meet ends.

However, don’t despair if you are in this position as we will assist you in finding cheaper car insurance. In only a few clicks you can compare car insurance policies offers for people who are not in employment from an array of providers; therefore you could find the best deal for you.

We could also assist in finding methods of keeping a cap on the cost of cover- and therefore find cheap car insurance for unemployed motorists.

Why is car insurance for people who are not in employment more expensive?

When it comes to determining car insurance premiums, insurance providers use a variety of factors including if they have had convictions, age of the motorist – and indeed their employment status. The total statistics highlight that unemployment is an added risk for insurance providers, according to the ABI.

There are various explanations for this:

– Car insurers see how regularly a driver will use their car, and those without a job are more likely to use their car more frequently to travel to look for work. Since the more you drive, the more likely you are of being involved in an accident, hence the higher premiums.

– Insurers also take into account the fact unemployed motorists could be more distracted due to their circumstances, so may drive less carefully. They could also be going along roads that are unknown to them, trying to get to job interviews in new addresses. Hence unemployed motorists are vulnerable to collisions and again results in increased costs to their car insurance.

– People who are not in employment could also be seen by insurers as less likely to look after their cars, since they will have lower amounts of spare cash to spend on maintaining their vehicle. In some incidents, they could be seen as a greater credit risk.

– To add, insurers claim market statistics highlight that there is an increased chance of the unemployed making a claim, particularly among the long-term jobless. Not just this, but insurance firms claim the long-term unemployed are further, more likely to consider making false claims.

Whilst a vast number of the reasons are open to debate, there is no denying the fact that insurance providers will calculate unemployed car insurance premiums on their own statistical data. This leads to unemployed car insurance being dearer – with these people discriminated for being out of the job.

How to find cheap car insurance for the People who are not in employment

If you have been unlucky and lost your job, you could be concerned about your ability to pay for car insurance – particularly if you have fallen on difficult times being out of work.

However not everything is lost, since there are many ways to find cheaper car insurance for the unemployed.

Compare car insurance quotes: to keep costs down, start by looking online for car insurance for the unemployed. This can also be done comparison services like freepricecompare.com. In addition keep in mind that car insurance firms provide discounts by buying online – hence make the most of them.

Don’t auto-renew: there are not many rewards for loyalty in the insurance industry, so do not ever automatically renew with your current provider. Using a comparison site can allow you to compare an array of quotes from a wide range of insurers – assisting you in finding the lowest quote for your specific circumstances.

Pay your premium upfront: Although it could be enticing to distribute the expense of your premium across a year, it is better financially to pay your premiums upfront if possible, since most insurers charge interest on monthly payments, meaning the cost will be greater across the 12 months.

Keep your mileage to a minimum: an easy way to reduce the cost of car insurance for those unemployed is driving less. The fewer miles you drive, the smaller your premiums – in addition you would also find savings on general wear and tear costs and petrol for your car. But ensure you are truthful about your mileage when making an application for insurance otherwise you risk your cover being invalid.

Pare down your cover: Another simple way to lower premiums is cutting out extras from your policy that you don’t require, like a courtesy car, or legal costs insurance. By ensuring you only for cover you particularly require, your premiums may becoming cheaper by a lot.

Choose a smaller car: since insurers separate cars into 50 different car insurance groups according to factors like engine size and the probable cost of repairs, you may find savings through opting for a small car in a cheaper insurance category. To search insurance groups, take a look at our car insurance groups page.

Don’t modify your car: avoid the temptation to carry out any modifications to your vehicle, like tinted windows or spoilers, since this could lead to increased premiums. For more details take a look at our modified car insurance page.

Improve the security: More savings can be made via parking in a garage at night or off-road and installing an approved immobiliser or alarm.

Increase the voluntary excess: You could find cheaper insurance by raising your voluntary excess. But if you do take this option, you need to make sure that you pay the excess if a claim must be made. If you cannot, you could find yourself in a place where you wont be able to put your car back on the road.

Consider telematics insurance: In the past few years, an increasing number of motorists have been reducing costs by taking the option of a telematics car insurance policy or black box. This kind of insurance rewards careful and sensible driving with discounted premiums.

Drive carefully: Sounds really obvious, but following the rules of the road and driving with care will lower the risk of attaining points or your licence. This should assist in keeping costs down.

Protect your no-claims bonus: another great way to minimise costs is by accumulating no-claims bonus. This can help take of up to 70% off motor insurance premiums after five years without making a claim. If a minor accident does occur, the crucial thing to consider is if it is worth claiming or not and pay for the repairs yourself.

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