car insurance unemployed

raskazz

JonBoy_SCFC wrote: »

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)

People who are unemploymed are a higher risk, the insurer's claims data confirms that.

As for the fundamental reasons behind why they are a higher risk, I think that your reasoning is basically sound. Those who are unemployed do - on average - lead less structured lifestyles than others, are more likely to have a car torched or stolen to order to generate quick cashflow, they are more likely to be involved in staged accidents, they are more likely to have problems actually paying the premium, they are more likely to be involved in criminality. All of these things are summed up by the posh piece of insurance terminology 'moral hazard'. It's all pretty commonsense stuff really, as you said.

JonBoy_SCFC

cheers i thought it was, nice to have it confirmed though:cool:

Kavanne

re: admin fee

The only time when I've rung to make a change and they have threatened me with the £25 admin fee is when my policy was up for renewal!!! They said 'oh but if you renew now we'll change it on your existing policy for free'... Gah!

But in the past I've changed: address, occupation, marital status, rented/homeowner at no charge.

mattymoo

Volunteer a few hours at a local charity shop and you could rightly say "charity worker".

No idea if this would be frowned on but having just been made redundant after some 21 years in the insurance industry I'll be in the same position as the OP myself.

allan2006

Quote "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"

But on the other hand, if your unemployed you might not be able to aford to fix your car or pay the excess on your insurance so you drive around with a dent instead of claiming.....there are many different avenues of argument

allan2006

ponders being retired at 30 instead

JonBoy_SCFC

allan2006 wrote: »

ponders being retired at 30 instead

i told you unemployed people are more likely to behave fraudlently;)

raskazz

JonBoy_SCFC wrote: »

i told you unemployed people are more likely to behave fraudlently;)

Funnily enough a fair few insurers are now declining to quote or loading rates for those who claim to be retired and are under 40 or 50, to prevent this type of fraud.

JonBoy_SCFC

what about those people genuinely retired early cos they got enough money or cos they had to stop working due to health etc?

raskazz

JonBoy_SCFC wrote: »

what about those people genuinely retired early cos they got enough money or cos they had to stop working due to health etc?

A tiny, tiny percentage of the population genuinely 'retire' before 40, so it's more economical to decline the risk than try to sift out those who genuinely are retired as the latter would carry a heavy administrative burden. Often the insurers who will decline retired people under 40/50 will offer the alternative option 'independent means' for such individuals.

For those who have had to stop working due to health but would otherwise be working then unemployed would be a more appropriate option. Some insurers also let you select 'medically retired' for this circumstance.