Car insurance for unemployed drivers
Obtaining car insurance can be expensive for anyone but unfortunately, unemployed drivers often end up paying more than employed drivers do.
Indeed a recent study from the BBC showed that unemployed drivers can expect to pay, on average, 30% more than others for the cover.
There are various reasons for this; we’ll go through them and show you how you can keep costs to a minimum where possible.
In This Guide:
- Why is car insurance more expensive for unemployed drivers?
- How can I get cheaper car insurance as an unemployed driver?
- Compare car insurance for unemployed drivers
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 reduce the price of your 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.
Compare car insurance for unemployed drivers
When it comes to insuring your car as an unemployed driver, if you want your pick of the best quotes on the market, you should always compare car insurance online.
Use Money Expert's car insurance comparison service to get a list of the best policies available for unemployed drivers so that you can get affordable insurance without sacrificing the level of cover you receive.