Can You Get Car Insurance Without a Job?
Last Updated on August 18, 2020
So you’re unemployed and you need car insurance. Can you get car insurance without a job? Does a car insurance company care about your employment status? Today, we’re explaining everything you need to know about getting car insurance without a job.
Insurance Companies Will Not Penalize You for Being Unemployed
Insurance companies look at a number of different things when calculating your insurance premium.
They’ll look at rating factors like your age, driving experience, credit score, driving record, history of claims, average mileage, vehicle age, and vehicle type.
Insurance companies may ask for your occupation as well. However, your employment status will not influence your insurance rates – and it certainly doesn’t disqualify you from buying car insurance. Your profession might qualify you for a discount with some insurance companies, but insurance companies will never penalize you for being unemployed.
Unemployed Drivers Might Actually Pay Less for Car Insurance
Many people are surprised to learn that unemployed people may actually pay less for car insurance than employed people
The reason is simple: if you’re unemployed, then you’re not commuting to and from work every day. Your vehicle isn’t on the road during rush hour, and you’re considered to be a significantly less-risky driver.
Car insurance companies may call this a “pleasure usage rating”. In general, you qualify for a pleasure usage rating if your annual mileage is significantly below the annual mileage of an average driver. If you’re unemployed and not spending lots of time on the roads, then you may get a discount.
It’s Illegal for Insurance Companies to Deny your Claim Based on Employment Status
There’s a reason insurance companies don’t deny your claim based on your employment status: it’s illegal.
In fact, it’s illegal for an insurance company to use a driver’s employment status to qualify or rate the driver in any way. This practice is considered discriminatory in nature.
If an insurance company tries to deny your claim based on your employment status, then that insurance company may face penalties from state regulating officials.
Some “Less Risky” Occupations Qualify for Certain Discounts
Your employment status will never affect your insurance rates. Your insurance company can’t penalize you whether you’re employed or unemployed.
However, certain occupations might receive a discount on their insurance policy. That’s because certain occupations are associated with lower risk. Your occupation status doesn’t play a factor in the price of your premiums, but your occupation title may play a role.
Occupations associated with lower car insurance costs include teachers, military officers, engineers, dentists, and accountants. However, not all insurance companies offer bonuses to these professions, and the difference isn’t likely to be significant.
Yes, you can get insurance even if you’re unemployed. No insurance company is going to deny your claim because you’re unemployed. In fact, it’s illegal for an insurance company to deny your claim due to your employment status.
They may deny your claim because of reasons related to your unemployment – like a low credit score or a history of crashing company vehicles. However, your employment status will never disqualify you from auto insurance.
Sometimes, unemployed people will pay more for car insurance. Different insurance companies calculate rates in different ways, and some companies give drivers in certain professions a discount. Other insurance companies will ignore your employment status and it won’t have any effect on your rates. And then there are some insurance companies that will give unemployed drivers a discount – after all, you’re not commuting to work every day, and you’re putting fewer miles on your vehicle.
Compare insurance quotes today to find the best rates on car insurance for unemployed drivers.