How to Find Car Insurance If You’re Unemployed

Auto insurance is one of the most common expenses that you are legally required to drive your car on the road. But what if you have recently lost your job and are looking for a way to reduce your expenses? Your auto insurance may be one of your biggest monthly expenses. Check out the blog if you’re looking for financial relief and ways to reduce your car insurance if you are unemployed.

Can Unemployment Increase My Car Insurance Rates?

Generally, auto insurance companies do not adjust your premiums based on your employment status. In some states, car insurance companies assess your credit history to help calculate your premiums. If your unemployment status causes you to fall behind on your bills, that could lower your credit score, increasing your premiums.

Can I Cancel My Car Insurance?

You must avoid canceling your car insurance. Even though you’re unemployed, you may still need to drive your car to complete essential tasks. You are legally required to have car insurance while you’re driving around town. If you cancel your car insurance and your vehicle suffers damages, you will be responsible for covering the repair costs, which will likely worsen things. If you’re leasing your car or still paying it off, the lender may require that you keep a specified level of coverage at all times. If you cancel your auto insurance policy, there will be a lapse in coverage. You will be subjected to substantially higher premiums on your next auto insurance policy because a lapse in coverage is considered a red flag to insurers.

Insurance Payment Relief Options

Trying to cover monthly car insurance premiums while unemployed is a difficult situation. While unemployment benefits can help alleviate some stress, there are other options to consider. Many car insurance companies are offering flexible payment programs to people who have lost their jobs. Some auto insurance companies are increasing grace periods to help struggling customers. You must reach out to your insurer to see if they have a financial hardship relief program or offer some other type of assistance.

Ways to Save Money on My Insurance

  • Practice Safe Driving Habits

    Auto insurance companies set premiums based on the level of risk involved in covering you. Safe driving habits lower your insurance risk, thus reducing your insurance premiums. Try to avoid speeding or getting involved in an accident. Keeping a clean driving record and avoiding filing claims can help you qualify for a safe driving discount.

  • Select Pay-Per-Mile Auto Coverage

    Due to your unemployment, it seems likely that you will cut back on driving. You must inquire about pay-per-mile auto insurance. Pay-per-mile policies continue to rise in popularity because your rate is adjusted based on the daily mileage. Your monthly premium will be calculated using a base rate and a per-mile rate. This can help you save a lot of money.

  • Opt for Discount-Friendly Payment Method

    Many auto insurance companies offer discounts based on your payment method for covering your premiums. Choosing Autopay can help you qualify for a discount. Autopay allows your insurer to automatically deduct your payment every month. Switching to paperless billing can also help you qualify for a discount. Also, paying a lump sum insurance amount may save you money in the long term.

  • Shop Around for Better Options

    Shopping around and exploring rates from different carriers can also help you qualify for a discount. The insurance industry is a competitive marketplace as carriers compete with each other to offer the best premium and discount packages. You can take advantage of this by finding a policy that directly aligns with your new budget.

  • Reduce Coverage

    While you are obligated to maintain at least a minimum level of liability coverage, you may be able to lower your premium by reducing the coverage in your policy. Consider cutting comprehensive or collision coverage if you don’t plan on driving a lot in the near future. However, you must talk with your insurer before making a decision.

Consult With Family Financial Insurance Group

Figuring out your next option while unemployed can seem overwhelming. These tips should help you find a way to lower your car insurance rate during this tough time. If you have any questions, contact our team here at Family Financial Insurance Group, and we will assist you.

Contact form

Comments are closed.