Car insurance for the unemployed

Find affordable quotes for unemployed drivers

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If you're unemployed you may have to pay more for your car insurance, but these tips will bring the cost of your cover down

Woman driving a car

Is car insurance for the unemployed more expensive?

If you list your job title on a car insurance application as ‘unemployed’, your premiums will almost certainly be much more expensive.

While this feels unfair, especially if you are actively looking for a new job, there are smart ways to get around this. For instance, if you change your job title from ‘unemployed’ to ‘housewife’ or ‘retired’, you can expect to shave almost a quarter off the average car insurance quote, according to MoneySuperMarket data correct as of December 2019.

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

How can I find cheaper car insurance if I’m unemployed?

The simplest way for unemployed people to save money on their car insurance is to make sure they’re listing your employment status accurately. MoneySuperMarket research shows that changing your status to things like ‘housewife’, ‘mature student’ or ‘retired’ will knock significant money off your premiums.

How changing your job title can save money on your car insurance

According to MoneySuperMarket data correct as of November 2019, unemployed drivers can save significant sums on their car insurance by changing the job title they supply to insurers

How can I lower my car insurance expenses if I’m unemployed?

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 groups based on factors like engine size and the likely cost of repairs, and you will save money by switching to a car in a cheaper group
  • Keep your mileage down: A simple way to lower the cost of car insurance is by driving fewer miles – the less you drive, the lower your premiums
  • Consider telematics insurance: With a ‘black box’ or telematics car insurance policy, you can be rewarded for safe and sensible driving
  • Don’t modify your car: If you make modifications to your vehicle, such as spoilers or tinted windows, this can drive up your premiums
  • Improve your security: If you can invest in an alarm, immobiliser or tracker, or park your car off the street overnight, you’re likely to get a better deal on your car insurance
  • Pay your premium upfront: Most insurers charge interest on monthly payments, so if you can, it might save you money to pay one lump sum
  • Simplify your cover: An easy way to reduce premiums is to strip out unnecessary extras from your policy, such as a courtesy car or legal expense insurance
  • Protect your no-claims bonus: A five-year no-claims discount can save you as much as half the headline price of your car insurance. If you do have a minor accident, it might make sense to pay for the repairs yourself rather than claiming
  • Renew at the right time: The average motorist will save 13.8% if they renew a car insurance policy with at least a week to go before it ends
  • Drive carefully: It may sound obvious, but if you drive with care and obey the rules of the road, you’ll reduce the chance of getting points on your licence, which should help you keep costs down

Compare cheap unemployed car insurance

MoneySuperMarket can help you find cheaper car insurance premiums. With just a few clicks of a mouse you can compare unemployed car insurance quotes on offer from a wide range of providers, and find the right deal for you.

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