Managing Money In A Crisis
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Car insurance for unemployed drivers
You can still get insured at competitive rates without a job.
If you’ve left or lost a job and need insurance, you can still qualify — as long as you’re not denied for another reason, like a history of accidents or bad credit.
Can I get car insurance without a job?
Yes. Your employment doesn’t affect your ability to get car insurance, and a provider can’t deny you coverage or charge you higher rates because you’re unemployed.
How does being unemployed affect car insurance?
While being unemployed doesn’t directly affect your insurance, several related factors might.
- How much you drive. If you’re no longer commuting to work and you find yourself driving less on a day-to-day basis, you could pay less for car insurance. But if you’re regularly on the road going to interviews and your mileage skyrockets, you could pay more.
- Your credit score. If you missed a few payments when adjusting to your new financial situation and your credit score dropped, you could end up paying higher premiums in some stats.
- Occupation-based discounts. Certain occupations, like teaching or being a police officer or military member, come with lower car insurance premiums as a perk. If you lose your job, you could lose access to job-related discounts.
Find affordable quotes for unemployed drivers
How can I get cheaper car insurance?
If you’re looking to slash your premiums, there are several tactics you can try.
- Track your driving. Fitting your car with a black box or telematics app that measures your speed, distance traveled and the time of day or night you’re driving can help lower your premiums. But if you’re an unsafe driver it can raise them, so watch out.
- Drive less. Your rates are often based on your mileage, and driving less can qualify you for lower rates.
- Increase your deductible. Your deductible is the amount you contribute to a claim before the insurance kicks in. Voluntarily accepting a higher deductible can give you a lower premium. Just make sure you can afford to pay it should you need to.
- Pay premiums up front. Paying a lump sum at the beginning of your policy is typically cheaper than paying for your policy monthly.
- Qualify for a no-claims discount. If it’s been several years since you had an accident, you may qualify for a no-claims discount.
Factors that affect car insurance premiums
Car insurance companies use several factors to set your premiums. Some are based on you — where you live, your vehicle, your age and your recent driving record will all affect how much you pay.
But there are external factors too. If there’s been a jump in car-related crimes in your area, your premiums may go up. And if your insurer has had a particularly expensive year due to lots of claims, it might look to offset the cost by raising premiums for everyone. And new laws or changes in tariffs that affect prices for car parts can also affect your rates.
Bottom line
If you’ve recently left or lost your job, it won’t affect your ability to qualify for car insurance. But if you’re struggling financially, you may want to lower your coverage until you get back on your feet and consider paying for your policy up front so you don’t lose it if you miss a payment. And to get the best deal, compare car insurance companies and get quotes before choosing a policy.
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