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Car Insurance for Unemployed Drivers - Rates & Options

Last Updated on December 17, 2023 by a2z_admin


Will my car insurance rates go up if I am unemployed? This question often troubles a person who isn’t employed. Well, the answer to it depends on several factors. Unemployed car insurance rates might be cheaper or expensive depending on a number of factors.

Firstly, you must know that if you are looking for a job that requires you to go out on a regular basis, your car insurance rates will go high.

Of course, if you are driving more, your insurance rates will increase, as the chances of accidents increase too.

Now, let’s consider the psychological aspect. When you are looking for a job, the chances are high that you will drive on roads that are unknown to you, and hence, it would increase the chances of accidents too.

However, if you have a clean driving record, no or a few driving violations, you might save a considerable amount on car insurance. Insurance companies do reward your good driving behavior.

Hence, the answer to the question asked above? Well, if you have clean driving habits, a good driving experience, and an amazing credit score, you can expect decent discounts on your car insurance rates. Car insurance rates don’t go up every time, just because you are looking for a job, and the chances of accidents are more. Numerous factors come into play here.

Let’s look at some numbers. For a company like Geico, a car insurer with a good credit score pays $2430, with a clean driving record pays $2820, and the person who will be driving 10 miles a day pays $3163. The same numbers for American Family are $2690, $2695, and $3400 respectively.

Best Ways to Save on Car Insurance if You are Unemployed

Read out some of the most reliable ways to save on car insurance while unemployed below

  • Be a Safe Driver – As mentioned, insurance policies do respect safe drivers, and hence, they do provide amazing discounts on car insurance rates. Stay away from violations, accidents, and rash driving. It won’t only save your insurance costs, but also keep your life secure. The more you drive safely, the more the chances that you will get amazing discounts.
  • Safety Features of the Car – In case, your car is equipped with advanced safety features, you can highlight them, and claim the discounts. The math is simple, the more safety features your car possesses, the less are the chances of unfortunate accidents, and hence, the insurance companies won’t be scared to offer you discounts.
  • Highlight Grades – No surprises! Yes, if you are a good student, you can claim amazing discounts, and the chances are high that you will get them. Insurance companies won’t hesitate to respect your grades, and hence, it would mean direct profits for you.
  • Take a Defensive Driving Course -It might sound a bit boring, but taking a defensive driving course is actually useful and recommended. Even though you already know driving, this course would improve your driving skills, and give the insurance companies an assurance that you are a safe driver. Hence, it would play a pivotal role in terms of convincing insurance companies that you deserve a discount on car insurance rates.
  • Full Payment – Car owners who pay the full premium always save more on car insurance rates. Hence, if possible, always try to pay a full premium as you will be saving a considerable amount in the long term.
  • Multi-Policy from the Same Company – Getting multiple policies from the same company is another reliable way to get discounted car insurance quotes when unemployed.

Keeping the above things in your mind when you get car insurance will make it easy to save rates on car insurance for unemployed drivers. Make sure to nail them before you actually close the deal with any company.

Other Ways to Save Car Insurance Rates when Unemployed

Well, along with the above-listed options, there are several other ways to save a few precious bucks on your car insurance rates. Yes, the above factors would definitely help you out, but there’s no wrong in knowing some additional options. After all, saving on car insurance is a challenge, and you definitely need it, specifically, when you are looking for a job. Read out these extra options below.

  • Reducing the Coverage – You can reduce your coverage to save your insurance rates. Yes, it would mean less protection, but if budget is your concern, you need to consider a few risky options. Just make sure to drive safely.
  • Reducing the Number of Cars – This is an obvious way to reduce your car insurance rates, isn’t it? In case, you have a large number of cars, and not all of them are useful, you can reduce the numbers of cars, which would reduce the insurance requirements too.
  • Increasing the Deductibles – You can increase your deductibles, which would reduce your insurance amount to a good extent. However, you need to stay right with the calculations here, as you must ensure that your budget stays unhindered.
  • Reducing the Miles – As mentioned, the fewer the number of miles your car travels, the more you will get discounts on car insurance. You can use public transportation as much as you can to reduce the number of miles your car has traveled.
  • Trade-In of Vehicle – You can go with this option if reducing the number of cars isn’t your option.

You can keep the above tips in your mind to claim an additional discount on your car insurance rates. Yes, these options do include some risk, but with the benefits that they come alongside, they are absolutely worth considering, specifically, if you are looking for a job.

Lastly, make sure to shop around, compare various options, negotiate well, highlight the areas where you can claim a discount, and select an option that fits your bill the best.

Factors Affecting Car Insurance Rates if You Are Unemployed

Now, it’s time to go through some of the most important factors that will affect car insurance quotes for an unemployed person. Read them out below.

  • Your Location – Your location is one of the most important factors that plays a vital role in terms of deciding the car insurance rates for you. If you reside in a location where accidents are common, chances are high that you will be paying high insurance premium.

    Also, the aspects like the weather patterns, crime rates, medical costs, etc. play an important role in terms of deciding the insurance premium rates for you.
  • Your Driving History – Your history of violations and accidents can increase your insurance rates to a considerable extent. If you don’t have clean driving habits, and if your car has been a part of frequent accidents and violations, insurance companies would hesitate a bit in terms of giving you discounts with car insurance rates.

    Hence, it’s a must for you to ensure that you maintain a clean driving history. It won’t only reduce your insurance rates, but also ensure your safety as a car driver.
  • Your Personal Information – Your age, marital status, and other personal information are considered when calculating the insurance premium rates for you.
  • Vehicle Model – The make and model of your vehicle, your vehicle’s age, the repair costs, and the availability of the vehicle’s parts also play an important role in terms of deciding the car insurance rates for you.
  • Your Usage – The distance your car has traveled plays a vital role in terms of deciding the insurance rates for you. Less the number of miles your car has traveled, the lesser premium you will pay.

As mentioned, you can use public transportation as much as you can to make your car travel less, and hence, save not only the fuel costs but insurance premium rates too.

These are the most important factors that would play a very important role in terms of deciding the insurance rates for you. No matter if you are unemployed or employed, these factors will come into the picture at some stage.

Three Best Ways to Find the Right Car Insurance

Finding the right car insurance isn’t easy by any means. Yes, there are a number of factors that you need to consider, and you by no means can let go of any factor unnoticed as it might pay you more than you should.

So, how do you find the right car insurance for yourself when you are still looking for a job? We list some of the top strategies that you can keep in your mind to select the right insurance for yourself. Read them out.

  • Be Right with Coverage Requirements – Make sure that you stay right with your coverage requirements. Not everyone does require full coverage with their car insurance. You can either go with a policy without collision coverage. It won’t cover the damages to your vehicle. Yes, it will increase the importance of safe driving for you, but, it is anyway important, isn’t it?

    Hence, make sure to know your coverage requirements well to save on your car insurance rates and select insurance that fits your requirements the best.
  • Research Well – Make sure that you research well. Check out the discount options the company offers, other benefits that insurance companies offer, transparency, and all other aspects. In this online world, doing research is a bit easy, and hence, make sure that you nail this aspect.

    The more you research, the easier it will be for you to select the right car insurance for yourself. Your research can save costs for you to a considerable extent in the long run.
  • Get Multiple Options & Compare – Lastly, getting multiple insurance quotes and comparing them is a must to ensure that you select the right car insurance. The more you compare, the more you explore options, and the easier it would be for you to select the right car insurance for you, and that too in a very cost-effective way.

Yes, selecting the right car insurance is difficult, but keeping the above factors in your mind, and nailing them would make a lot of things easy for you. Hence, when you shop for car insurance, just research well, be a bit patient, and negotiate well.

Here Is A List Of Important FAQS
It depends on a number of factors. Your location, driving habits, car model, etc. play an important role here. You need to contact an insurance company, give your details, and then only, the exact answer to this question can be extracted.
Yes, to some extent, it does. However, along with other factors too come into the picture here. A combination of various important aspects can either increase your insurance rates or decrease them.
Yes. They do check your employment. Even the type of employment you have is also considered here.

About the Author

Alex Huber is a content writer for Atoz Insurances and he is a very experienced and well-rounded freelance content writer who specializes in the insurance and finance niches. His writing is engaging and informative, and he has a strong understanding of the industries he writes about.

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