Compare Car insurance for Unemployed drivers

Are you genuinely unemployed?

'Unemployed' as an employment status should only be used for those 'between jobs' or 'actively looking for work'. So, for example, you shouldn't choose this option if you are retired, a home maker, self-employed, a mature student, or a stay-at-home parent.

Data suggests that unemployed drivers will pay around 25-30% more for their car insurance than a person in full-time employment. This does seem harsh when money is likely to be tighter than ever but it is all down to the level of risk. This is why you should only select 'Unemployed' when it is a true reflection of your situation.

Why Does Being Unemployed Hike Up Car Insurance Costs?

If you're out of work, insurers often see you as a higher risk. Here's why:

1. More driving to interviews in unfamiliar areas
2. Possible struggles to maintain your car if money is tight
3. Greater likelihood of missing payments
4. Increased chance of making a claim

Research by the Institute of Employment Studies found that unemployed individuals are 50% more likely to make a car insurance claim compared to those in stable employment.

Unemployed vs Employed: The Price Difference

Check out this quick comparison to see how job status can impact prices:

*NCD: No Claims Discount

You can see, no matter your age or driving history, unemployment means higher prices - usually 25-30% more. A study by the University of Bristol revealed that, on average, unemployed drivers pay 27% more for their car insurance compared to those in full-time work.

Get Quotes

Top Tips for Cheaper Car Insurance When You're Unemployed

1. Compare quotes from multiple providers on a insurance comparison website such as Free Price Compare to find cheaper insurance.
2. Consider a black box (telematics) policy to prove you're a safe driver
3. Pay annually instead of monthly if you can afford to
4. Increase your voluntary excess
5. Reduce your mileage if possible
6. Build up a no claims discount
7. Take an advanced driving course
8. Choose a car in a lower insurance group

How Does Being Unemployed Affect Your Car Insurance Costs?

Being unemployed can impact your car insurance costs. Insurers often view unemployed people as higher risk, which can lead to higher premiums. This is because:

• Insurers assume unemployed drivers might use their cars more frequently, increasing the chance of accidents.
• There's a perception that unemployed individuals might be less able to maintain their vehicles properly.

However, your employment status is only one factor insurers consider. Your age, driving history, and the type of car you drive also play significant roles.

How Can High-Risk Occupations Affect Car Insurance?

Some occupations are considered high-risk by insurers, which can lead to higher premiums. These often include:

• Delivery drivers
• Journalists
• Estate agents
• Professional athletes

Interestingly, police officers often enjoy lower premiums due to their perceived responsibility and driving skills.

How Can You Save on Car Insurance If You're Not Using Your Car for Work?

If you're not using your car for commuting or business use, make sure your policy reflects this. Pleasure-only policies can be cheaper. Also, consider:

• Reducing your annual mileage estimate
• Parking in a secure location overnight
• Avoiding unnecessary modifications to your car