Average Car Insurance Rates for the Unemployed

Unemployment can increase your car insurance rates by affecting your (1) credit score, (2) regular mileage, and (3) the discounts you are eligible for.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: May 12, 2020

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Here's what you need to know...

  • Obtaining lower insurance rates is one of the ways that you can help yourself when unemployed
  • Do not ever drive a car without adequate car insurance or you could face serious consequences
  • Comparing quotes is one of the best ways to shop for new car insurance anytime

When between jobs, saving money on all financial obligations is a good idea.

Many people find themselves in this situation through no fault of their own in an economic recession.

Start the comparison of car insurance rates for FREE by typing in your ZIP code now!

Your Car Insurance Company and Unemployment

Many people ask if they should let their car insurance company know about any period of unemployment. In most cases, the answer to this question is yes.

During unemployment, many people drive less. Gasoline is expensive, and additional car maintenance is an unwanted expense.

If you have a good driving history, and no record of claims or moving violations in the past three years or more, many companies may try to offer you lower  rates.

Keeping a mileage record in your car is a good way to learn if you’re driving fewer miles during a period of unemployment.

Some people may actually drive more miles than usual because they’re interviewing with new companies and trying to get a new job.

Taking public transportation during a period of unemployment can help save money you’ll save on gasoline, car repairs, and miles driven.

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Make Your Car Insurance Payments Affordable

The insurance industry measures risk in a variety of ways.

According to data collected over many years, financial stress such as unemployment increases the risk assumed by a car insurance provider.

Increased risk is one of the reasons a new car insurance company may not want to offer you coverage.

They may have concerns about your ability to pay premiums or, in the event of a car accident, to pay your deductible.

If you’re confident that paying the cost of your car insurance isn’t an issue, consider offering to pay the annual premium in full.

Your good driving history and credit report will also help to allay the concerns of a new car insurance provider.

How to Decrease Your Car Insurance Rates

Lowering your bills during a period of unemployment is a good financial strategy.

Other ways to decrease your car insurance costs include:

  • Reducing the number of cars you and your family drive
  • Reducing your comprehensive car insurance policy limits
  • Trading in your current car for a less expensive to insure vehicle
  • Consolidating your car insurance with a homeowner or umbrella liability policy
  • Using available public transportation to reduce costs of gas, maintenance, and miles

Lowering Your Rates

There are many ways to decrease your monthly car insurance rates during a period of unemployment.

If you aren’t unemployed but you’re concerned about losing a job, take proactive steps to lower your car insurance rates now.

The best way to pay less for car insurance rates is to compare quotes from other car insurers.

Enter your ZIP code in the FREE tool below now to get started in finding new, more affordable car insurance!

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