The number of people that have become unemployed has significantly increased in the past few years due to the economic crisis. Most people know someone that was affected by the economic downturn. Millions of jobs have been cut and certain businesses have completely fallen off the map as a result of the economy. How does this affect the car insurance industry? Well, this means that there are more individuals looking to get car insurance for unemployed people. When you are unemployed, it can have a direct affect on your auto insurance premiums and losing a job could mean that you have to deal with price increases on your insurance.
Why You Shouldn’t Panic if Unemployed
If you are unemployed, there is absolutely no reason to panic if you think that your job loss will immediately affect your car insurance cost or policy. There may be cases when insurers decide to raise your insurance cost because they think that you will be driving more due to the fact that you are unemployed. However, there are other companies that may decide not to change you rate at all – or may even lower it if they think that you will be driving less than average since you lost your job. If you already have an insurance policy, you are obviously in a better position than someone who doesn’t have one and is unemployed, but the fact that you are unemployed doesn’t mean that you will be limited in your opportunity to get insurance.
Many people assume that just because they are unemployed that they are not going to be able to purchase car insurance and this is not true. Obviously as long as you have enough money to afford a policy, you are going to be able to buy coverage. And if you are unemployed and drive less often than you normally did when you were employed (e.g. if you had a long trip to work and now you don’t make that trip) you may actually be able to save some money. Don’t panic if you don’t yet have insurance and are unemployed, you will be able to get some.
How Does Car Insurance For Unemployed People Work?
Well, for most people, there is no apparent increase in risk to their car insurance company when they lose their job. If you lost your job and are driving around less, you probably won’t have to worry about your insurance policy. However, there are companies that understand the possibility that certain unemployed people will actually end up driving more often. Since the amount of money that you pay for premiums are determined based on your overall risk to the insurance company, they may decide that you pose more of a risk since you will be spending more time driving to look for jobs and to go to interviews.
The nice thing about being unemployed with an existing car insurance policy is that you won’t have to tell your insurers that you are unemployed until it comes time to renew your policy. If you don’t yet have a policy, they will likely ask you for employment information on the forms that you fill out for a policy. Don’t stress out about the fact that you are unemployed because when you find a job, you can notify them and they will make the changes on your customer profile. If you are getting a better deal while unemployed than you normally would while employed, then you probably won’t be too worried about your car insurance prices.
Keeping Auto Insurance for Unemployed Affordable
If you don’t yet have a car insurance policy and are unemployed, you will definitely need to get insurance as soon as possible if you plan on driving legally. There aren’t really any companies (that I know of) that specialize in providing cheap car insurance for unemployed people. You have got to search around on the internet and get some quotes from trustworthy insurers so that you can get a good, affordable price on your insurance policy. Look to buy insurance through a provider that will give you quality coverage for an affordable price.
Don’t think that you need to go out and buy the most inexpensive car insurance policy, because getting a policy that is inexpensive may not necessarily provide all of the coverage that you need. However, if you want to get the cheapest possible coverage because you can only afford the bare minimum, then all you’ll want to get is something like a third party auto insurance policy. Many people that are unemployed need to take a look at their own driving habits, the type of vehicle they use, and decide whether it would be worth it to spend money for a standard policy or whether it would be better to get the bare minimum. If you have questions regarding how unemployment affects your car insurance policy, then call your insurer and ask – each insurer will deal with each case of unemployment differently depending on the individual circumstances.