Unemployed Car Insurance

As we all know, car insurance does not come cheap. But the cost of car insurance for the unemployed can be even more expensive. As we all agree being an unemployed is itself a big problem and a slight increase in insurance premiums for such people can prove to be havoc. Car insurance premiums average almost a third more (30%) for those out of work and in some instances they could be as much as 63% higher.

Why is Car Insurance For Unemployed More Expensive?

Insurance carriers while calculating your premiums consider many factors like your age, profession and also your current job status. Car insurance premiums look at how often you will be taking out your vehicle and view those who are out of work as likely to use their care more frequently to travel in search of work. Insurers also consider the fact unemployed drivers may be more distracted because of their circumstances, so may drive with less care. They may also be driving along roads that they are not familiar with, and trying to find new addresses to attend job interviews. Unemployed individuals may also be viewed by insurers as less likely to maintain their vehicles, as they will have less spare cash to spend keeping their car in good condition. In addition, insurers say industry figures show there is an increased likelihood of those out of work making a claim – especially among the long-term unemployed.

How to Find Cheap Car Insurance For Unemployed

Compare car insurance quotes
If you’re looking to keep costs down, you should begin your search for car insurance for the unemployed by shopping around online
Keep your mileage to a minimum
A simple way to keep a lid on the cost of car insurance for the unemployed is by driving fewer miles. The less you drive, the lower the premium you will face – plus you will also make savings on petrol and general wear-and-tear costs for your car.
Choose a smaller car
Given that insurers categorise cars into 50 different car insurance groups based on factors such engine size and the likely cost of repairs, you can make savings by opting for a smaller car in a cheaper insurance group
Drive carefully
It may sound obvious, but if you drive with care and obey the rules of the road, you will reduce the chance of getting points on your licence. This should help you keep costs down
Pay your premium upfront
While it may be tempting to spread the cost of your car insurance premium over a year, it makes better financial sense to pay for premiums upfront if you can, as most insurers charge interest on monthly payments, meaning it will cost more to spread payments over 12 months.