Why are unemployed drivers seen as high risk?
Insurance providers may consider that unemployed drivers are:
- Less likely to maintain their car With less disposable income available, unemployed drivers may try to save money on their car’s upkeep
- More likely to claim According to insurance statistics, claims are higher among long-term unemployed people
- A higher credit risk Unemployment may make it less possible to settle debts
- Likely to be driving more often Unemployed drivers might be travelling more and driving to unfamiliar places while seeking work
- Distracted by their circumstances With job-search worries on their minds, drivers may be more likely to get into an accident
For these reasons, a change in employment circumstances often means insurance providers charge a higher premium.