Why Is Car Insurance Higher For Unemployed?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    In California employment is not a rating or underwriting factor.  However, in some states the insurance company has been able to demonstrate that unemployment leads to different claim patterns.  If they can convince the state insurance commissioner, they might be able to use that factor in determining premiums or in declining business.
    Answered on July 10, 2014
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  2. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    I have to be honest with you, I have been serving the insurance needs of the folks of Connecticut since 1985, and I cannot recall every seeing a situation where someone's car insurance was higher due to their employment status. There are any number of factors that can effect the premium that we pay including driving record, type of vehicle, vehicle usage and where we may live, accident history and credit score to name a few. But I have not seen a situation where someone was paying more because they were unemployed or less because they were working. Frankly, I am not sure how an insurance company could justify that from their statistics.
    Answered on November 9, 2015
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