Unemployment: Does that affect my car insurance premium?

Unemployment is a fact of life but it can also impact your car insurance premiums.

If you become unemployed, you must notify your car insurance company straight away to inform them, as not doing so can invalidate your policy.  

Your premium will be adjusted accordingly but as long as you are medically fit to drive, there is no reason why claiming benefit while unemployed (Job Seeker’s Allowance) or unable to work (Employment Support Allowance) should push your premiums up.

In fact, as most policies are calculated based on the mileage and use of the car, not having a daily commute to the office could actually lower your payments.

Car insurance companies take into account all of your personal details when calculating your premium – your gender, age and previous driving convictions are all equally as important as your profession.

The key is to ensure that your car insurance company has the most up-to-date information available to calculate your premium accurately.