{"id":190408,"date":"2019-04-30T16:30:40","date_gmt":"2019-04-30T15:30:40","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=190408"},"modified":"2024-06-22T15:23:06","modified_gmt":"2024-06-22T14:23:06","slug":"car-insurance-for-unemployed-drivers","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/car-insurance\/car-insurance-for-unemployed-drivers","title":{"rendered":"Car insurance for unemployed drivers"},"content":{"rendered":"

Car insurance isn\u2019t cheap for anyone, but if you\u2019re out of work, it might seem impossibly expensive. And it\u2019s not just your imagination (or your declining bank balance) that\u2019s giving this impression. For years, car insurers have seen unemployment as a sign of increased risk and hiked premiums accordingly. We look at why this is and give you tactics for cutting car insurance costs so your car insurance<\/a> is one less thing to worry about.<\/p>

What is unemployed driver car insurance?<\/h3>

When you fill in a car insurance quote form on a price comparison site or directly with an insurer, you\u2019ll be asked questions about your employment status and occupation. This is because some jobs are seen as higher risk than others<\/a>.<\/p>

Unemployed driver car insurance isn\u2019t a special category of car insurance. Rather, it\u2019s a policy that takes into account the fact that you\u2019re out of work at the moment. Unfortunately, the impact of being unemployed on your car insurance premiums is rarely positive.<\/p>

Can I get car insurance without a job?<\/h3>

You certainly can, but it\u2019s likely to be much more expensive.<\/p>

Before we get into why unemployed people are hit with higher fees and how you can get cheaper insurance, it\u2019s worth saying that you shouldn\u2019t list yourself as unemployed if you don\u2019t have to. There may be another option that describes your occupation more accurately.<\/p>

For example, if you\u2019re not working by choice, you might get a lower premium by listing yourself as a student, retiree or stay-at-home parents instead of unemployed.<\/p>

That said, if you usually have a paid job but are currently out of work and seeking a new role, it\u2019s best to be honest and list your occupation as unemployed. Lying, or bending the truth, on an insurance application can invalidate your policy.<\/p>

Is car insurance more expensive if I\u2019m unemployed?<\/h3>

Typically, yes. Depending on your profession<\/a>, it could potentially be hundreds of pounds higher than when you\u2019re working. The reason for this is that unemployed drivers are often seen as higher risk than those in employment. And \u201crisky\u201d customers get charged higher premiums.<\/p>

For this reason, you may be less likely to see major changes if you were previously in a job that insurers see as high-risk, such as a chef or a pharmacist, than if you were in a low-risk job (such as a mechanic or designer).<\/p>

Why are unemployed drivers seen as a higher risk?<\/h3>

Car insurance companies<\/a> take into account dozens of factors when working out your premium. Your occupation is just one of them. Here are some of the reasons that insurers might consider you to be a higher risk if you\u2019re out of work.<\/p>