Motor Insurance On Benefits

Jamiesmum wrote: »

I didn't know car insurance was more expensive for unemployed people. why is this?

The answer is simply because of statistics. From what insurers have found over the years, it seems like people who are unemployed are more likely to get into accidents, so they are statistically a higher risk than others.

It's ridiculous, because someone who was say a doctor who got let go doesn't automatically become a higher risk, but its the way they do things I'm afraid.

I used to have a Mitsubishi Evo 5, 350bhp, 350 ft/lb of torque, think my insurance was something like £600, then I sold it for an Audi A4 diesel. Much slower car, and realistically, much less likely to speed or do silly things in it.

My insurance premium went UP by £100, not down!! I argued my point with the insurers and they came back and said "because there are more of this type of car (Audi) on the road you are more likely to be involved in an accident than with your last car".

So yeah, apparently the SLOWER, more reliable car is more of an insurance risk than the road going rally car.....my response was simply "so if I buy a Zonda will you insure me for free, seeing as there is maybe 100 of those in the entire UK...."

Needless to say, he couldn't respond to that and simply said it's what their system is telling them.

So yeah, just comes down to what their statistics deem as a higher risk.

pappa_golf wrote: »

but you are working! you are employed by DWP to research job leads and test them out


the unemployed get hammered with car insurance Cos , they seem to think that £74 a week is going to allow them to do huge mileages per week

Think its more to do with the fact that if its a choice between eating or replace the bald tyres/leaking brakes, then they're more likely to choose the food option, so rightfully imo, they should be charged more as they're a higher risk.

Generally there's a "new car" factor - your unfamiliar with it so more likely to do something wrong (hit the wrong switch, misjudge the length/turning circle, or overstep on the performance), and will come down again.

I normally keep cars for about 4-5 years, so I usually get an initial hit changing and then it settles down.

They'll be a higher risk of defaulting