Most Important Factors to Know About Car Insurance Premiums When Unemployed

If you are unemployed, paying your bills becomes a balancing act. The unemployed must look for ways to lower their monthly expenses to get buy. If you own an automobile, you must have car insurance even if you are unemployed; however, there may be a way to lower your premium.

About Car Insurance Premiums When Unemployed

Driving a car is a necessity for most people. If you are unemployed, you may still need to drive your car to run errands, buy groceries and go to job interviews. Car insurance is required by law. Unless you live in a big city with excellent public transportation, you will need your vehicle and must have it insured.

Most people do not know that they might be able to lower their car insurance premiums when unemployed. Car insurance premiums are determined by several different factors; age, driving record, type of car, credit history and how many miles the car is driven each day to and from work.

If you typically drive to work, your insurance premium was calculated with that in mind. When you are no longer employed, you do not have a daily commute to work. This reduces the insurance company’s risk, thereby reducing your car insurance premium.

Contact your insurance agent and let them know you are no longer working. Have them recalculate your insurance premium based on lower yearly mileage and no commute to and from work. You might be surprised by the savings.

Another way to lower car insurance premiums is to ask your agent if the insurance company has a defensive driving course online. Typically insurance companies offer this course at a reduced rate. The yearly savings for completing a defensive driving course is 10%, which is much greater than the cost of the course.