Research by a major price comparison website has shown that redundancy can prove particularly expensive for motorists suggesting that losing a job can also lead to a dramatic rise in the cost of your car insurance.
Occupations and the usage of the car have always been major underwriting factors considered by insurance underwriters but according to uSwitch.com premiums can increase by around 20% on average for jobless people.
It isn’t all bad news however as the older, more experienced drivers who have earned no claims bonus will probably find their premium to remain the same or possbily reducing.
If you are young however, say 20 years old, with only 1 years no claims bonus, uSwitch reported the insurance premium increasing by 45%.
Even a 40 year old male without any NCB could find their premium increasing by up to 22%.
Underwriters assess premiums and risk on the assumption that in the event of an individual become unemployed, then their car usage will increase, either because of the need to drive to interviews or because the insured has more free time.
If you are unfortunate enough to find yourself jobless at any time, please do not forget to inform your insurers.
Fail to do so and you could be risking your insurer refusing any claim on the grounds of non-disclosure of a material fact which could have affected your insurance policy and premium.