Lost Your Job? You Need To Tell Your Car Insurer

The last year hasn’t been kind on many people, with many losing their jobs. If you’ve lost yours, for any reason, you need to inform your car insurer…

Employment Status And Car Insurance 

Not everyone’s aware, but a person’s employment status is a significant factor for car insurance companies when generating premiums. In fact, research conducted last year revealed the difference between one job title and another could be as high as £200. The likes of professional drivers, fitness instructors and bar staff were found to pay the most. Conversely, account executives, administrators and mechanics pay the least.

Perhaps more disturbingly, however, is the fact that an unemployed person may actually face higher premiums from their car insurer. Daniel Hutson, of Comparethemarket, said “unfair as it might seem, the answer is often ‘yes’. Without a job, you may be considered a higher risk by insurance providers. This can hike up costs, come renewal time”. As a consequence, MoneySupermarket officially advises people not to tell their car insurance providers that they’re unemployed. Students and people who mistakenly describe themselves as ‘unemployed’ can pay up to £700 more each year, too. Stay-at-home parents can also lose out if they describe themselves as being unemployed.

Provide The Most Accurate Answer 

Kevin Pratt, consumer affairs expert at MoneySuperMarket, has advised drivers to give the most accurate answers about their personal circumstances. He said, “to get the best cover, at the best price, you have to choose the most accurate answer at every stage. That can mean trying alternatives to find the one that best matches your situation, instead of plumping for whatever seems most obvious. It’s worth taking your time”.

However, if you fail to tell your car insurer that you’re unemployed (when you really are) you could invalidate your insurance altogether. Greg Wilson, founder of Quote Zone, explained “if you’re made redundant you might not be keen to shout about it, but with car insurance for unemployed people costing 30 percent more, on average, if you fail to disclose your redundancy to your insurer there’s a risk that could be viewed as an attempt to mislead”. In other words, it’s crucial to be honest with your car insurer. However, if you’re not truly unemployed it’s best to accurately describe your personal circumstances. This is especially important for the likes of stay-at-home parents and homemakers.

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The Autoserve Club can save you time, money and stress. Club Members can receive discounts on servicing and new tyres and will gain access to our professional 24/7 helpline. To learn more, contact our friendly Service Advisers on 0121 521 3500 today.

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