Car insurance for unemployed drivers

Find affordable quotes no matter your employment status

Find affordable quotes no matter your employment status

Save up to £504 on your car insurance*

Save up to £504 on your car insurance*

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Recommended by 94% of users**

Compare car insurance policies for unemployed drivers

Car insurance can be more expensive if you're unemployed. Compare policies to find the right deal

Car insurance can be expensive for anyone but, unfortunately, unemployed drivers tend to pay more than those in employment. It is still possible to find cheap car insurance if you're out of work, but you might just have to look a bit harder. We'll explain how and why.

In This Guide:

Why is car insurance more expensive for unemployed drivers?

Insurers base the quotes they offer to customers on calculations made regarding the likelihood of the customer being involved in an accident or other claim worthy incident.

These calculations will be based on statistics about the driving habits of anyone belonging to the demographic that the customer belongs to, according to things like age and employment situation.

Aspects of the life of an unemployed driver that serve to increase the price of premiums offered include the fact that searching for a job often involved driving around a lot in potentially unfamiliar places.

The combination of increased mileage and potential increased risk of theft (due to unfamiliar and potentially risky locations being visited) translates into higher risk on the part of the insurer and so into higher costs of insurance policies.

There is also the worry that, given the lack of steady income for unemployed drivers, they are statistically less likely to be able to afford to maintain their vehicle as well as someone with a regular income.

Additionally, insurers claim that their figures show that unemployed drivers are statistically more likely to make a claim generally and further, that those in long term unemployment are more likely to consider making a fraudulent claim.

How can I get cheaper car insurance as an unemployed driver?

While as an unemployed driver you will, in general, pay more than others for your car insurance, there are plenty of ways to keep your premiums as low as possible.

Firstly, your choice of car will have an impact on your policy cost. A smaller, less powerful car that is less attractive to thieves and vandals will cost less to insure than a flashy, high performance sports car.

Secondly, when you come to renew your policy, you should always shop around for new deals rather than simply auto-renewing with your current provider. This way you can avoid frustrating rate hikes and constantly take advantage of the best deals on the market.

Improving the security of your vehicle by using anti-theft devices and keeping it off road in a garage will also serve to cut money off the cost of your premium.

One of the best ways to consistently find a cheap car insurance policy is to build up a no claims discount, with many providers offering up to 75% off your premium if you drive for five years without making a claim.

Last reviewed: 1 April 2024

Next review: 1 May 2024