Looking for a job can be a full-time job — without the benefits, of course. Let us handle your insurance.
Being unemployed can be terrifying as an adult. You still have to pay your rent/mortgage, eat, and usually you still often drive which means you need car insurance. Paying for insurance is legally required, even when you're unemployed, and yet there aren’t a lot of resources to help if you aren’t getting a regular paycheck. Well, that’s where we come in. Let’s explore cheap car insurance options if you’re unemployed.
In short, no. Insurance companies do use as many things as possible in order to accurately calculate the risk (i.e., premium you’d pay) you present to them. These things are usually your driving habits, location, what your drive, and your age — but not necessarily your occupation. They can use what you do as an indicator your potential as a customer, but we’ll explain that soon.
Certain professions are associated with a lowered risk than others and thus some companies offer discounts for those professions. With that said, insurance companies do not use your occupational status as a rating factor nor do you have an obligation to tell your insurance company mid-term if you quit or lose your job. Insurance companies cannot charge you more based on what you do.
If you want to see what insurance companies do use to calculate premiums, see our guide here.
As we stated, the fact that you don’t have a job won’t impact your insurance premium. However, what you do for a living can impact your premium. Certain professions are associated with a lowered risk than others and thus some companies offer discounts for those professions. These occupations, listed below, are commonly rewarded with an affinity/membership discount.
Again, it is not that your insurance company will charge you more if you do not fall into one of these jobs. It’s that an insurance company will simply charge them less.
Regardless if you feel this is fair or not, we have a plan on how you can save while you’re unemployed.
Although you’re not directly punished for being unemployed by your insurance company, you certainly still feel the sting of spending money while you’re not earning any. So, let’s get to saving.
Telematics, or usage-based insurance, is a growing trend in the insurance industry. Basically, it uses an in-car device to track your driving habits. And your habits will determine a premium that is more representative of the kind of risk you actually are to your insurance company. Your age, credit history, and location are all big rating factors in most states for your premium that aren’t directly tied to how you drive. SO, if you’ve been unemployed for awhile, your credit might take a hit. Here are some companies and corresponding potential discounts for telematics.
|Progressive's SnapShot||Average of $130|
|Allstate's Drivewise||Average of 10-25%|
|State Farm's Drive Safe & Save||Up to 15%|
|Nationwide's SmartRide||Up to 40%|
|Liberty Mutual's RightTrack||Average of 5-30%|
Consider, however, that not every state participates in these programs. Check with your company to see if you are eligible.
The way in which you pay for insurance can help reduce your premium. For example, paying all of your premium up front rather than month-by-month can help reduce your installment and processing fees. This is called a paid in full discount and while we understand it’s not exactly practical to pay hundreds of dollars up front when you’re not earning any income, we thought we’d throw it out there.
Savings Based on Method of Payment
|Savings with Paid in Full||Savings with EFT|
The second part of our “paying smart” suggestions might be a little easier if you’re unable to pay all of your premium up front. Paying by electronic funds transfer (direct deposit via your bank account) can help eliminate pesky transaction fees associated with debit and credit cards. Although less than a paid in full discount, it can still be helpful.
If you own or rent an apartment, consider placing the insurance policies you have over your residence with the same company as your auto (or vise versa). This will not only save you some hassle of having to deal with multiple insurance companies (who likes that) but also give you a much adored multi-policy discount. While the discount below reflects the savings on your auto policy, you would receive a discount on both policies.
Savings on Bundles
|Savings with Renters||Savings with Home|
Although our data reflection traditional multi-policy parings (home/auto), this discount can apply to any combination of two insurance policies.
At any time, regardless of employment status, you should always strive to drive safely. But now that you’re looking for work this fact is even more important. As you can see below, receiving a DUI can raise your premium an average of $529 per a 6-month policy. Consider, however, that you will be charged for DUIs for a total of 3 years (on average, 10 years in California). So, that $529 will actually stretch into over $3,174 over your 3 year sentence.
Average Increase in Annual Premium in 2016
|Accident/Violation||6 Month Premium Increase|
|Speeding 11 - 15 MPH Over Limit||$141|
|Speeding 16 - 20 MPH Over Limit||$153|
|Speeding 21 - 25 MPH Over Limit||$165|
Unlike a house, a car depreciates in value over time. So, if you bought a brand new vehicle a decade ago, chances are you don't need the same insurance protections you once had. The only coverages you are required by law to have (unless you have a lien) are your state liability limits. Other coverages, like comprehensive and collsion are designed to protect your car. Consider if the value of your vehicle (which can be easily determined through Kelley Bluebook or NADA guide) is worth what you pay for these additional coverages. Here are our quick tips for determining coverage:
Shopping for car insurance is probably the absolute best way to find a cheaper rate. You can look for all the discounts, consider all the telematics out there and still be paying an arm and a leg for auto insurance. Sometimes it’s just your company. Only with The Zebra can you shop hundreds of companies at once in order to find the best rate for you. Saving you time to search for what you really need - a job.
Insurance is regulated at the state level, priced at the zip-code level, and reflective of many attributes of you. Which means, it's very hard to say which company will be the cheapest for you. Your best bet is to follow our advice regarding shopping around often in order to see as many companies as possible.
If you'd like more specific information regarding companies and premiums, see some of our case studies below.
Getting car insurance without a social security number
My friend from England need insurance. How can she get insurance without a US license and no SSN?...
Are some insurance providers better suited to my needs than others to get the best rate?
I am 25 years old and currently drive a 2015 BMW 328i xDrive. It’s leased and i’m about to lease ...
Does car insurance cost less for a financed or owned car?
I took a auto loan. So I am looking for an auto insurance. I was wondering, will the auto insurance ...
Insurance without a credit history
I’m an 18-year-driver without an established credit history. Will this affect my ability to get insurance?...
We all have days when we want nothing more than to become one with the couch. But for most of...
Expenses, 1099s, quarterly tax payments? These words alone are enough to make any side hustler’s head hurt — which is...
Are you a contractor? 1099 worker? Do you supplement your income with freelance writing, driving for a rideshare company, or...