Friday, May 20, 2022

Does Being Unemployed Affect Car Insurance

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Is Car Insurance Legally Required

Vehicle Insurance Quotes | Does It Matter If You Are Unemployed – 2017 Unemployed Vehicle Insurance

Yes, car insurance is legally required in almost every state. Forgoing car insurance when you are unemployed might seem like a reasonable way to save money, but it can have expensive repercussions. You may need to assess your coverage and make changes to your policy if you cannot afford your typical monthly payment, but cancelling your coverage altogether is generally not advisable.

Find Cheap Car Insurance

Car insurance isnt cheap for anyone, but if youre out of work it might seem impossibly expensive. This is because car insurance providers have for years seen unemployment as a sign of increased risk.

We look at why this is and give you tactics for cutting car insurance costs, so your car insurance is one less thing to worry about.

Are You And Your Spouse Going Through A Separation

If you and your spouse are separating or going through a divorce, then you may not have to have your spouse listed on your car insurance. These situations often require you and your spouse to determine who is keeping which vehicle, and this will mean changes to the insurance coverage.

When this type of marital status change happens, speak to your insurance provider as soon as possible to update your policy.

Notifying your insurance provider quickly about these changes is important to avoid conflicts or disputes.

For instance, if the divorce proceedings are not amicable, one spouse may attempt to sever all ties and finances. This severance could include canceling insurance policies immediately, which may leave you without protection.

In the situation that you and your spouse are separated, but have not gone through the divorce process yet, its still important to speak to your provider. They can often provide you additional guidance on what steps you should take to protect yourself and how to resolve any disputes amicably.

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How To Find The Right Car Insurance For You

If you need car insurance, your employment status will not necessarily limit you. However, looking for companies that offer low rates and discounts could help you manage your finances without an income. Here are a few strategies to keep in mind:

  • Shop around: Research car insurance companies in your area. Read reviews for each company, evaluate its financial strength and most importantly, find out what discounts it offers. Your research might help you find a company that meets your needs.
  • If you have a lease or loan, your lender likely requires you to carry full coverage insurance. If you own your vehicle outright, you could choose to buy a liability-only policy. Just know that if you buy a policy without comprehensive and collision, your policy will not have coverage for damages to your vehicle. Additionally, lower liability limits might save you money on your premium, but could result in high out-of-pocket costs if you cause an accident.
  • Get multiple quotes: Once youve identified a few providers and determined how much coverage you need, compare quotes from several different companies. Contact each provider to find out rates and savings options with discounts, then compare to see which company can give you the best deal.

Does My Wife/husband Have To Be On My Car Insurance

How Do Unemployment Insurance Claims Affect Employers?

Spouses are often listed on insurance policies together, but there may be times when you do not have to have your spouse on your policy. If your spouse already has a policy in force, then you may be able to avoid putting them on your policy.

Also, if your spouse cannot be covered by your current provider, they may need to be excluded from your coverage.

Divorce or separation may also be a factor, which means you may not want your spouse listed on your policy at a certain point.

If you are going through one of these situations, its important to speak to your provider honestly. They can let you know what steps you may be required to take regarding adding your spouse, removing your spouse, or separating your coverage if the household is dissolving.

If you are going through a divorce or separation and need auto insurance, start comparison shopping today by entering your ZIP code below!

  • Car insurance does not require that you add your wife to your policy
  • Insurance companies may offer discounts to married couples
  • Adding your wife to your policy does not mean you are guaranteed a discount
  • Different driver types may require different insurance coverage

If youre newly married, youve probably noticed that a lot of things have changed. From your bank account to your tax returns, everything you used to manage on your own suddenly starts to merge together with your spouse.

Now that youve tied the knot, you may be wondering if you have to add your wife to your car insurance policy.

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Own A Car That’s Inexpensive To Insure

Generally speaking, the cheapest cars to insure are older, smaller and equipped with more safety features. For example, a 10-year-old station wagon will typically have lower rates than a brand-new SUV. So if you’re in the market for a new car, consider buying one that meets as many of these characteristics as possible.

Compare Rates And Check For Discounts

If you are looking for a new policy or if you have an existing policy, losing your job could present a good opportunity to shop your coverage with different car insurance companies. Each carrier offers different rates, so the same coverage could cost a different amount. Shopping allows you to compare rates to find a policy that fits your budget. Additionally, you may want to talk to a company representative about potential policy discounts. You may qualify for savings that you werent aware of, which could help you lower your premium.

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Does Education Level Affect Car Insurance

Did you realize that having obtained higher education can secure you lower rates for car insurance?

While State Farm is one of the few larger insurance providers who doesnt use education as one of its determining risk factors, many auto insurance companies give lower rates to customers just for having attended college and for earning a degree than to their counterparts with no collegiate experience.

Take a look at these rates from Geico:

Geico Averages Monthly Car Insurance Rates based on Education Level


Note: The occupation was kept as chef for consistency. We wanted to see how education would affect the rate as the variable. In our research, the policy rates given were for six months. We arrived at the monthly rates by dividing six-month rates and the annual by multiplying for reference.

It is also interesting to see that military service held even more weight than education level when it comes to factoring rates and discounts.

Even if you havent completed a degree, there are still ways for you to lower your rates through education. Here is a snapshot of additional education discounts offered by some major carriers:

Student Driver Car Insurance Discounts Offered by Companies


Jobless Get Walloped When Buying Insurance

Do Modifications Affect Your Premium? [Insurance Special]

    Unemployed people are sometimes charged over five times more for their insurance than those in work, a investigation reveals.

    In the worst cases, a £247 annual car insurance quote for a male financial adviser turned into a £1,343 cost if that same person lost his job.

    The problem exists most dramatically on car insurance, but home insurance customers who are unemployed can also pay more than those in work, albeit by a smaller margin.

    We used various samples to find out just how much more the unemployed pay. On car insurance, in every case bar one, they either paid more or were not offered cover for their motor, as some insurers don’t cover the unemployed.

    The news comes at a time of high unemployment. The number out of work fell by 45,000 during March the latest figures available but was still a whopping 2.6 million, up from 2.46 million a year earlier.

    If you’re a homemaker, housewife or househusband, ensure you state that on insurance policies, rather than saying you are unemployed, as that should cut the price.

    Insurers say those out of work pay more because their statistics show they are more likely to make a claim.

    We found:

    Dan Plant, money analyst, says: “With job losses rife, insurers jacking up prices for people unlucky enough to be made redundant is another shot to the heart of their finances.

    Can you beat the system?

    If you wrongly put “homemaker” on a form and make a claim, it could be declined.

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    Check For Payment Options

    Car insurance companies typically offer numerous payment options that could help you navigate your finances during unemployment. You may find that paying your premium in full earns you a discount and could save you money in the long run. If you dont have the funds to pay in full, you might be able to break your premium up into quarterly or monthly payments. If you sign up for automatic withdrawals, you could lower your premium.

    If you find yourself unable to pay at the designated time, reach out to your company to discuss your grace period. Most companies will give you extra time to pay before cancelling your policy, although a late fee may be charged. Similarly, if you are struggling to pay your cars loan or lease payments, talking to a representative from your financial institution could uncover ways to adjust your payment plan.

    Getting Cheaper Insurance If Your Profession Is Expensive To Insure

    Some professions are quite expensive to insure.

    Anything involving professional sports, for example, will make car insurance quite pricey.

    Choosing a car from a lower insurance group can help make your policy cheaper.

    Adjusting your voluntary excess can also bring down the cost of your car insurance.

    If you’re struggling to find a car policy, a specialist broker may be able to help.

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    What If Im Looking To Purchase A New Car Insurance Policy While Unemployed

    Can I get car insurance without a job? It can be a bit harder to get an insurance policy if you are unemployed, but most companies will insure you. Many insurance companies see those who are unemployed as being more of a risk to insure.

    Unemployment also raises the risk that you may not make monthly payments or cover the cost of your car insurance deductible.

    Your best bet in this situation is to shop around. Get several quotes from different car insurance companies and compare the policies. While no specific companies specialize in insuring the unemployed, you will find that some are more understanding of your situation than others.

    Is Filing For Unemployment Bad For Your Credit

    Can you get car insurance without a job?

    Unemployment agencies are only allowed to share your history in a few rare scenarios, and there are no public records of who collects unemployment. Because unemployment is not included in your credit reports, it has no impact on your credit scores, and lenders cannot see whether you’re on unemployment when they pull your credit.

    Receiving unemployment benefits may actually help you maintain your credit while out of work due to the fact that it provides a reliable monthly income. Having at least some form of income during that time will allow you to purchase the essentials and might be enough to also cover the minimum payments on any debt you have.

    Trying your best to pay at least the minimum payments on your debts will go a long way in making sure your credit doesn’t suffer a big drop while unemployed. Any late or missed payments could have a negative impact on your score.

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    Will My Car Insurance Go Up If I Am Unemployed

    Is car insurance cheaper if you dont work, or will it go up? It depends. Unemployed car insurance can be cheaper or more expensive than average. If your job search takes you on the road more frequently, expect your car insurance rates to increase.

    According to the National Institutes of Health, driving more could increase your chances of involvement in a severe accident. Car insurance companies agree with statistics and may see you as a higher risk if you drive more frequently.

    Unemployed drivers tend to file more claims than those whore employed.

    Thats because unemployed individuals are searching for employment. During the job search, there may be a lot of roadways and conditions that youre not used to navigating.

    However, you can offset the 30 percent increase in car insurance with good credit, a clean driving record, and driving less. According to the Federal Trade Commission, companies offer lower rates to drivers with good credit because they present less risk.

    Below youll find average annual rates based on credit, driving record, and commute mileage.

    Annual Rates Based on Good Credit, Clean Driving Record & 6,000 Commute Mileage


    Good credit and a clean driving record will earn you the cheapest car insurance rates. A longer commute mileage is more expensive, but good credit and a clean driving record can offset high prices.

    How Can I Get A Car Loan If Im Unemployed

    WAYHOME studio / Shutterstock

    Car loans for unemployed people do exist. Whether youve lost your job altogether or youve just been furloughed, you can try to get a car loan when you go to the dealer or attempt to get approved online by filling out an application with a lender before you go in. Getting a car loan without a regular job depends on several factors including whether you have other income sources or assets and your credit score.

    Here are four ways in which you can possibly find car loans for unemployed individuals.

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    Reduce The Number Of Cars You Own

    Unemployment insurance

    Auto insurance rates are partly determined on a per-vehicle basis, so you’ll pay more per month if you own multiple vehicles. If it’s feasible to make do with fewer cars, selling one of them can cut your rate as well. You’ll also limit the other costs associated with owning a car, like fuel and maintenance.

    Reduce your coverage

    You can reduce your monthly rates by decreasing the level of optional coverages you have or by increasing the deductibles on your policy. One common choice for owners of older vehicles is to follow the 10 percent rule.

    Consider removing collision and comprehensive coverage on your car if the annual cost of those coverages exceeds 10% of the payout you would receive if your car is totaled.

    For example, if your car is worth $2,000 and you have a $500 deductible, the most your insurance company will pay if your car is totaled is $1,500. In this scenario, you may want to cancel comprehensive and collision coverage if this part of your insurance exceeds $150 annually.

    However, you shouldn’t lower your coverage past what you can afford to pay out of pocket. For example, if you can only spare $500 to fix your car, it’s a bad idea to raise your deductible to $1000, as you wouldn’t have enough money to pay the repair bill and get back on the road.

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    How Much Auto Insurance Coverage Do I Need

    If you become unemployed, it might be a good time to check the value of your car and see if you can save on auto insurance. If you own your car outright and do not have a loan or a lease, you only need coverage that fulfills your state’s minimum liability limits. You might want to keep optional policies that protect your vehicle, such as comprehensive and collision coverage, depending on how much your vehicle is worth and if you can afford to repair or replace it after an accident.

    Check a reputable source such as the NADA Guide or Kelley Blue Book to estimate the current market value of your vehicle. Because cars depreciate in value over time, an older car is worth much less than a newer model.

    If the difference in cost between full coverage and liability-only is more than the value of your vehicle, consider dropping comprehensive and collision. Otherwise, you might want to keep it so that you can get a new car if you have a crash. Go through this process about every year if you still carry full coverage on a vehicle you have owned for some time.

    Do Auto Insurance Companies Charge More For Unemployed Drivers

    According to The Zebra, you do not have to tell your insurance company if you lose or quit your job. In addition, the insurer cannot charge you more for coverage based on the type of work that you do. However, you might qualify for certain discounts based on your employment. For example, some insurance companies have discounts for teachers, police officers, and other professionals with a statistically lower risk level. If you have this type of discount and leave your job, you may end up paying more for coverage without the discounted rate.

    The website notes that common professional discounts include lower auto insurance premiums for:

    • Certified public accountants
    • Nurses, doctors, and other health care providers

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