car insurance unemployed

JonBoy_SCFC

gazza975526570 wrote: »

I imagine its more to do with them being available to drive their car more often and a such more liely to be involved in a crash.

wouldn't that be reflected in the annual mileage?

the mileage might play a part, but the fraud will play a part too - why are you so against accepting that?

raskazz

If you are unemployed then you declare your employment status as unemployed. Fairly obvious - anything else is fraud.

Being unemployed can result in higher premiums and a lot of insurer schemes will not quote for unemployed drivers, because the claims history for unemployed drivers confirms that they do present a higher than average risk. A lot of insurers assess their premiums using 'lifestyle' underwriting where employment status plays a large part in understanding the risk that the policyholder presents, so it certainly is important to declare your employment status accurately.

JonBoy is right on the whole - the unemployed are more likely to submit fraudulent motor claims and are more likely to present what insurers call 'poor moral hazard'. Of course insurers aren't saying that everyone who is unemployed is a fraudster - but the basis of insurance is using statistics to calculate the 'average' risk.

gazza975526570

JonBoy_SCFC wrote: »

wouldn't that be reflected in the annual mileage?

the mileage might play a part, but the fraud will play a part too - why are you so against accepting that?

In my experience it just doesnt ring true - sorry.

JonBoy_SCFC

raskazz wrote: »

If you are unemployed then you declare your employment status as unemployed. Fairly obvious - anything else is fraud.

Being unemployed can result in higher premiums and a lot of insurer schemes will not quote for unemployed drivers, because the claims history for unemployed drivers confirms that they do present a higher than average risk. A lot of insurers assess their premiums using 'lifestyle' underwriting where employment status plays a large part in understanding the risk that the policyholder presents, so it certainly is important to declare your employment status accurately.

JonBoy is right on the whole - the unemployed are more likely to submit fraudulent motor claims and are more likely to present what insurers call 'poor moral hazard'. Of course insurers aren't saying that everyone who is unemployed is a fraudster - but the basis of insurance is using statistics to calculate the 'average' risk.

thanks - some common sense at last

I've also thought of another one - say if i have an accident and would cost £1000 to fix my car, but i stand to lose my NCB. If i'm unemployed i might not have a choice other than to make a claim, but if i'm working i might be able to afford to fix the car myself and save my NCB.

this might contribute to unemployed (and poor) people being higher risk. I assume nobody has any objections to this point?

JonBoy_SCFC

gazza975526570 wrote: »

In my experience it just doesnt ring true - sorry.

it's the experience of the insurance companies that count

PasturesNew

I'd give my usual job title. What job you do affects insurance to some degree, but I suspect being unemployed wouldn't be detrimental.

I usually guess at my job because the sort of jobs I do are never on their lists. I get them to read through the list until we settle on something that'll be closest.

gazza975526570

JonBoy_SCFC wrote: »

it's the experience of the insurance companies that count

No, its the experience of people working within Insurance Companies that count

gazza975526570

PasturesNew wrote: »

I'd give my usual job title. What job you do affects insurance to some degree, but I suspect being unemployed wouldn't be detrimental.

I usually guess at my job because the sort of jobs I do are never on their lists. I get them to read through the list until we settle on something that'll be closest.

Yeah - on a seperate note how annoying are these forms on insurance quotes!!

raskazz

PasturesNew wrote: »

I'd give my usual job title. What job you do affects insurance to some degree, but I suspect being unemployed wouldn't be detrimental

Is is detrimental, to the point that some insurers do not cover those who are unemployed. The insurer is not just asking for your 'occupation', it is also asking you for your employment status. If the OP enters his usual occupation and is discovered to be unemployed he is fairly likely to have a void policy. I wish people would not give out such dangerous 'advice'.

JonBoy_SCFC

Raskazz: what you reckon of my other potential reason to explain why unemployds are higher risk? i think it makes sense but wondering what people who work in insurance think (i'm assuming you work in the industry)