Car Insurance for the Unemployed
When you apply for car insurance, the insurer will often ask you many questions about your car, coverage requirements and yourself. One of the most common questions asked is employment status and job role – and the cost of your coverage can certainly be influenced by your answer. We are here to help you figure out how to lower your car insurance costs and make auto insurance affordable during a period of unemployment.
Why Employment Status?
Car insurance can be more expensive for those who are unemployed. Insurers often assume that those that don’t work full time have more time to drive elsewhere, and might be travelling multiple times a day and long distances as part of their search for work. If you are employed, the type of job role you have can also impact your insurance premium. Roles that involve a lot of driving throughout the day are more likely to lead to a higher premium than roles that require the employee to stay in the office or on-site all day.
Must I Share My Employment Information?
As you are asked your employment status and job role when you take on your insurance policy, it is your responsibility to update your insurer should anything change. Should you fail to do so, your insurance might even be invalid, even if you’ve continued to pay your premium without fail. When you tell your insurer your change in circumstances, they may increase or decrease your payments – at which point you have the option to accept or look elsewhere.
Can I Stop Paying My insurance for a While?
Whatever you do, it’s important to keep paying your insurance, even in a time of difficulty. Driving without insurance is illegal and can lead to heavy fines and other serious problems. Stopping your insurance policy and choosing not to drive can hinder your job search, and mean that future insurance quotes are far more expensive. Instead of pausing your policy, try and lower the cost of your insurance to make ongoing payments more affordable. Here are a few tips on how to go about this.
Top Tips: Keeping Your Premium Low
There are several changes you can make to lower your insurance rate to keep it affordable while you’re out of work. Here are just a few suggestions to consider.
- Compare Quotes
The cost of auto insurance can vary enormously between providers, and this is no different for those who are unemployed. Ensure you get several quotes before committing to one – you might save yourself a lot of money in the long run enabling you to budget more easily for longer.
- Pay Upfront
If you’re able to pay your annual total upfront, you’re likely to save money. Many families find monthly payments less overwhelming and easier to budget for, but paying monthly, compared to paying 6 monthly or annually, is generally a more expensive route to go down.
- Choose Basic Coverage
The coverage you choose can greatly impact your premium. Do you really need roadside assistance? Can you increase your deductible? If you own a low value car, you might also choose to get liability only car insurance.
- Smaller Engine
Choosing a car with a smaller engine could mean your car insurance is cheaper. If your car has a large engine, like a v-8, your insurer might believe you’re more likely to speed or drive irresponsibly. Choosing not to modify your car can also have an impact – modifications can sometimes mean higher insurance rates!
- Increase Safety
Keeping your car in a garage or using off-road parking can decrease your insurance premium. You might also consider installing a security system to reduce the cost of your auto insurance.
- Own Fewer Cars
If times are tough and you can get by with one car, but own several, consider minimizing the number of cars you own so that you aren’t spending as much on insuring them all.
- Combine Insurance
Combining renters and auto insurance can make your premium cheaper. By going with the same provider for both, you can save money.
There’s a lot to consider when it comes to car insurance, and rates can vary widely depending on your vehicle model, manufacturer and value, the extent of coverage you choose and even your gender, marital status, and age. The tips above are designed to help you get the best possible car insurance for you.
For more information about how to get affordable car insurance while you’re unemployed, call the Insure on the Spot team. We would be happy to help you find the right package for you, to help you keep to budget and maintain the freedom your vehicle brings.