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When you wind up unemployed, you can feel isolated. But you’re not alone: millions of Americans go through unemployment every year. Most people experience some period of unemployment over the course of their careers. Luckily, it won’t last forever—the average worker spends 21 weeks unemployed before finding a new job.
Making it through unemployment while meeting your basic needs may take some creativity, but you can do it. And this article will help you find cheap car insurance coverage in the meantime. Ready to find cheap coverage now? Use Insurify to compare accurate car insurance quotes and snag the lowest rate quickly. It’s easy and free to use!
Unemployment will not directly affect a driver’s car insurance rates.
The cheapest insurer we found for unemployed drivers is USH&C, with average premiums of $92 per month.
Usage-based discounts can help unemployed drivers save on car insurance if they drive fewer miles because they’re not commuting to work.
Cheapest Car Insurance Companies for Unemployed Drivers
How much is car insurance for unemployed people?
Car insurance is not directly affected by unemployment. However, if you used to drive to commute to work, you may even save on your insurance costs when you are unemployed through low mileage discounts and changing the primary use of your car from “commute” to “pleasure”.
If you’re looking to lower your auto insurance rate, you should look into working with an auto insurance company known for offering low premiums. Luckily, there are many options for you to choose from no matter where you live.
We reviewed hundreds of quotes given to unemployed drivers across the country to determine which companies are offering the lowest rates. Below is a list of top companies offering the lowest car insurance premiums on average nationwide.
|Insurance Company||Monthly Quote for Unemployed Drivers|
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How does being unemployed affect car insurance?
To fully understand how being unemployed affects you, you should understand the factors that influence the cost of your auto insurance policy. In other words, understand which risk factors are insurers looking at. These factors include:
Location—claim rates, crime rates, weather patterns, and medical costs in your ZIP code
Usage—how many miles you drive and the primary purpose behind your driving (commuting, pleasure, etc.)
Driving history—your history of moving violations, at-fault accidents, DUI, and how long you’ve had your driver’s license
Vehicle—your make and model, plus the age of your car.
You’ll notice that your employment status did not make the list. That’s because it does not directly affect the cost of car insurance. When you lose your job, your rate won’t suddenly go up or down. But unemployment can indirectly affect your expenses in a few ways.
Your car’s primary purpose has likely changed. If you used to commute to work, your vehicle usage classification has changed from “commute” to “pleasure.” And that’s a good thing—“pleasure” drivers get lower rates than “commuters.”
You also may drive less now than when you were employed. That means you could qualify for low-mileage discounts and rates. Driving fewer miles also means less wear and tear on your vehicle, which also saves you money.
On the other hand, you may also lose any employment-related discounts. Unemployment can affect your ability to pay your premium. A lapse in coverage can raise your rates in the future, so always try to work with your insurer when you’re having difficulty paying.
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How Unemployed Drivers Can Get Cheap Car Insurance
There are many ways to lower your car insurance costs, but one of the best ways is by taking advantage of policy discounts. There are many insurance discounts available, and nothing stops you from stacking multiple discounts together.
Different insurers offer different sets of discounts. And some will give more significant discounts for the same thing. Common discounts include bundling, multi-vehicle, low-mileage, and more.
Discounts related to billing—autopay, for example—can get you 2 to 10 percent off your premium. Other discount programs are more valuable. A defensive driver course, for example, can get you up to 20 percent off. Participating in a telematics program can get you as much as 25 percent off when you show responsible driving habits.
Beyond discounts, there are a few other housekeeping rules you should keep in mind to receive low rates now and in the future:
Compare car insurance rates often, at least every six months. Rates change quickly. Making comparison-shopping part of your regular financial practice helps you take advantage of lower rates. It might be worth switching car insurance.
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Cheapest States for Car Insurance for Unemployed Drivers
Where you live has a significant impact on what you pay for car insurance. That’s because insurance companies determine your rate based on risks specific to your ZIP code. Below are the cheapest states for getting car insurance when you’re unemployed. It’s no surprise that this list is dominated by states whose residents primarily reside in rural areas.
|Insurance Company||Cheapest Monthly Quote|
Tips for Cheaper Car Insurance for Unemployed Drivers
When cheap car insurance is required to fit an unexpectedly small budget, you’ve got to take every measure you can to lower your rate. Deep breaths: there are many ways to get a lower rate. Some require more drastic changes than others but result in a more drastic reduction in your costs. Follow these tips to make car insurance affordable for you.