Your age
If you’re a young driver you’ll usually face much higher car insurance premiums than older, more experienced drivers as insurers recognise you’re at greater risk of having an accident
How much does car insurance for unemployed drivers cost?
The average price of comprehensive car insurance for an unemployed driver in the UK is £706.85
Why do unemployed people usually pay more for car insurance?
Insurance companies use all sorts of information to calculate how much your premiums will be – and job title is a really important data point. Insurers’ data suggests that unemployed people are more likely to have an accident.
This may feel unfair, especially if you are actively looking for a new job, but there are things you can do to lower your premium. For example, instead of setting your job title to ‘unemployed’ consider whether another job title describes your circumstances.These could be:
Student or postgraduate student
Houseperson (housewife or househusband)
Retired
Use the MoneySuperMarket job picker tool to help you find alternative job titles. But remember, while tweaking your job title is a legitimate way to cut the cost of your car insurance, it's important the title you choose accurately reflects your circumstances.
What affects the price of car insurance?
Aside from your occupation, there are a number of personal factors which insurers use to calculate insurance premiums. These include:
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Your driving history
If you’re built up a number of years without any incidents you’ll benefit from a no-claims bonus and you’re likely to face lower premiums than a driver who has penalty points on their driving licence or a history of accidents as they will have a higher risk profile
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Where you live
Insurers will use your postcode to determine if you live in an area where there are higher crime rates. This increases the chance of your car being stolen or vandalised and will therefore push up your premium
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Your mileage
Insurers use your average annual mileage to help determine how likely you are to have an accident. Generally, the more miles you travel, the greater the risk. Find out more about how mileage impacts car insurance
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Your car
The make, model and value of your car impact the price of your car insurance as generally the more valuable your car is, the more you’ll pay for insurance
How to lower your car insurance when you’re out of work
Insurers base the price they offer you on many different factors, of which employment status is only one. This means that even if you’re unemployed, there are plenty of ways you can pay less for car insurance:
Choose the right car
Insurers split cars into 50 different pricing groups based on factors like engine size and repair costs. The cheapest cars to insure will generally be found in lower insurance groups from 1 to 10 so picking one of these cars should reduce your premium.
Alter your class of use
Car insurance companies categorise drivers into different brackets, based on how they use their vehicle. This is known as classes of use. Typically, they cover you for social, domestic, pleasure, and commuting to a single place of work. By changing this to social, domestic, and pleasure only you could lower your premium.
Opt for pay-as-you-go insurance
Pay-as-you-go insurance charges you based on how much you drive so if you’re doing low mileage (usually under 6,000 miles a year) because you’re not commuting to a workplace this could be a cheaper option than standard car insurance.
Consider telematics insurance
Having a black box or telematics device in your vehicle that shows your insurer how safely you drive and what time of day you drive could help reduce premiums.
Lower your mileage
Overestimating your mileage could lead to higher premiums (as insurers think you’re at higher risk of an accident) so if your annual mileage has reduced because you’re no longer commuting, make sure you tell your insurer. Use our annual mileage calculator to do the hard work for you.
Simplify your cover
Add-ons like breakdown cover cost extra to add to your policy. Cutting out the extras you don't need can reduce your car insurance price. For example, some cars have a special fuel cap system which prevents misfuelling so depending on your car’s make and model it might not be worth adding misfuelling cover.
Improve your car’s security
Having security features like factory-installed alarms and immobilisers on your car and storing your car in a locked garage reduces the risk of theft, and can also bring your insurance costs down.
Compare quotes
Shopping around can bring significant savings regardless of your employment status. MoneySuperMarket can do the hard work for you. With our price comparison tool you can compare quotes from 184 (accurate as of 15 August 2025) of the most trusted car insurance providers in the UK.
Why compare unemployed drivers car insurance with moneysupermarket
Find cheap car insurance quotes for unemployed drivers with MoneySuperMarket
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It doesn’t take long
Pop in a few details about yourself, your car and driving history, and any named drivers
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We’ll search for savings
We’ll show you which car insurancequotes are the cheapest and offerthe best cover
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Car monitor
We’ll automatically email you MOT, taxand insurance reminders - so you’llnever miss your renewal dates
Our expert says…
Car insurance can be a lot more expensive if you don't have a job. Insurers tend to view the unemployed as a bigger risk as claims data shows they have a higher number of accidents which pushes up premium prices.Thankfully there are things you can do to help keep the cost down, such as reducing your mileage by walking or cycling instead, improving your car’s security or adjusting your insurance cover levels.
Sara Newell Motor & Home Insurance Expert
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MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Why is car insurance for the unemployed more expensive?
Insurers tend to charge unemployed people more for car insurance because they believe unemployed drivers are more likely to make a claim. There are several reasons for this:
Unemployed people are likely to drive more if they use their cars to look for work, which increases the risk of an accident occurring
If you’re unemployed, you’re also more likely to be driving on roads you’re not familiar with, which also increases the risk of accident
Insurers believe that unemployed drivers may be more distracted because of their circumstances, and may drive less carefully
Unemployed individuals may also be viewed by insurers as less likely to maintain their vehicles, as they have less spare cash
Unemployed people tend to pose a higher credit risk
Do I need car insurance?
Car insurance is a legal requirement for drivers in the UK, thanks to the continuous insurance enforcement rules brought in as part of the road safety act of 2006. This means that unless your car is registered as off the road with a SORN, or in the process of being bought or sold, you could be faced with a fine for not insuring your vehicle.
Is it cheaper to pay monthly or annually for car insurance?
Your car insurance policy will be cheaper if you pay an annual lump sum rather than in monthly instalments. Paying monthly can be useful as you’ll be able to spread the cost out, but you will end up paying a little extra overall as you’ll pay interest each month.
What does a car insurance excess mean?
Excess payments refer to the cost of making a claim – it’s essentially how much you’ll need to put towards the total claim cost before your insurer pays the rest. Volunteering a higher excess fee on top of the compulsory amount indicates to insurers you won’t bother making small and frivolous claims.
What is a no-claims bonus?
A no-claims bonus is what you earn when you go some time without claiming on your policy. The longer you’ve gone without claiming, the more your insurers will knock off your premiums as they’ll see you as less likely to make further claims in the future.
You might consider not claiming for an accident if the damage done to your car is minor and it would be more sensible to pay for the repairs yourself – let’s say the excess you’d need to pay was more than the overall repair costs. This way you’ll preserve your no-claims bonus as well as being better off financially.
Do I have to tell my insurer about an accident if I don’t intend to claim?
If you’re involved in an accident and you decide not to make a claim, you should still inform your insurer. They’ll keep their records up to date, so they know what condition your vehicle is in and whether this will affect your likeliness of claiming in the future.
If you don’t keep your insurer updated, it’s possible this will void your insurance policy so you won’t be able to claim when you really need to.
Can I get temporary car insurance if I'm unemployed?
Yes, you can get temporary car insurance if you’re unemployed but you may have to pay more as insurers’ data suggests you are more likely to have an accident. Insurers also have restrictions such as the number of points on your licence and how long you have held a licence for.
Do car insurance companies check employment in the UK?
Insurers don’t typically check your employment status when you take out a policy but you are required to tell them your job title and to answer this honestly otherwise you could later find your claim is rejected.
Do I need to tell my insurer if I've lost my job?
Yes, you should contact your insurer if you lose your job so they can amend your job title, otherwise you risk your insurance being invalid.
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Is car insurance eligible for SuperSaveClub and rewards?
Yes, you can earn SuperSaveClub rewards when you buy car insurance through MoneySuperMarket.
This includes:
Up to £15, which you can withdraw as a pre-paid Mastercard or a gift card for brands like Sainsbury's and Amazon.co.uk
Free Days Out pass (worth £180), which gives free entry to a range of UK attractions
Cashback of up to 10% when you spend at brands including eBay, Just Eat and Argos
To earn SuperSaveClub rewards on purchases you must:
Sign up to SuperSaveClub (it's free)
Be signed in to your account when you make the purchase
More information can be found on our SuperSaveClub homepage.
Is car insurance eligible for Price Promise?
Yes, car insurance is included in our Super Save Price Promise.
If you buy through us then find the same deal for less we will:
refund the difference
give you a gift card worth up to £20
Terms and conditions apply. More information can be found on our Price Promise page.
Reviewed on 9 Dec 2025 by
Data based on the minimum price of life insurance sold through MoneySuperMarket for life insurance and critical illness cover for October 2025-December 2025. Prices vary based on your personal details & circumstances.
Data based on the average price of life insurance sold through MoneySuperMarket for life insurance and critical illness cover for October 2025-December 2025.
Data based on the median price of life insurance sold through MoneySuperMarket for life insurance only for October 2025-December 2025.