Question of the Week: I’ve lost my job, do I need to tell my insurer?

Former_MSE_Wendy

Q. I’ve lost my job, do I need to tell my car insurer?

A. Yes. Always tell your car insurance company about any change of details as soon as possible, including redundancy or change of career.

Failing to do so could invalidate your insurance and / or see claims rejected, as career impacts price & the small print usually specifies, "you must inform us of any significant change in circumstances".

According to ABI (insurers trade body) the reason behind this is if you don't inform it insurers can argue they haven't had the opportunity to recalculate if there's now an additional risk.




(Plus, check with the Car Insurance Job Picker if you can subtly (and legally of course) change your job title to save cash.)

[threadbanner]box[/threadbanner]

UK_101

A very good point!
I haven't checked as yet, but, as this is a "... significant change of circumstances" surely the house contents insurer should also be informed?

Of course, on starting a new job, the insurance company would need to be told the new job title.

In the same vein should insurance companies not also be informed of change of status on retirement?

CITY-GIRL_5

losing your job puts the premium up if you put unemployed-better to put househusband!

Iffy_Wallet

Scenario A: Get up, rush breakfast. Jump into car. Fight way through rush hour traffic. Lots of people around you in similar circumstances. Nip out at lunchtime for a sandwich and a newspaper. Boss says "And don't be late back".

Scenario B: Lost job. No money for fuel. Car stays parked. Jump in car at 10:00 am Wednesday for the weekly shop, roads quiet. Jump in car on Friday at 2pm to attend interview, roads quiet.

So for some reason, the insurance company are saying that Sceniaro B is higher risk than Scenario A. Explain??

Or is it just a case of "Thank you sir for notifying us, that will be £15 arrangement fee." And if you have a string of filler jobs on and off for 6 months during the recession, you could end up paying hundreds extra because you are a soft target?

financial_illiterate

Iffy_Wallet wrote: »

So for some reason, the insurance company are saying that Sceniaro B is higher risk than Scenario A. Explain??

If you're at work and you haven't got business use, you drive to work on a familiar route, your car stays parked, probably in a secure location, all day (you might go out in it at lunch time, you might not), and then you drive home.

If you're not at work, your car could be in use all day, anywhere at all. Therefore your statistically more likely to have an accident.

Not saying its right or wrong, but that could be one way as to why it perceived as higher risk.

tjc68_2

my daughters insurance was up for renewal and she informed them she wasnt working as she was pregnant and they put her premium up as they said if your not working you are more likely to not have enough money to pay!!

jweb2k

Would you have to notify your insurer if you were on maternity leave?

Skint_Catt

tjc68 wrote: »

they said if your not working you are more likely to not have enough money to pay!!

But I've paid mine in full last month!

I've gone down from 3000 miles a year to less than 1000 (if my current use keeps up for 12 months) and as has been said I'm not driving in peak traffic flow, so nice quiet roads (especially next week when the kids go back during the day) so how can they justify an increase?????? :mad:

dacouch

Skint_Catt that answer is from a customer services rep who does not know the real answer so has just blagged an answer. If you rang somewhere else there with a similar lack of knowledge they would probably give you a different answer.

I assume they have entered you as being unemployed which tends to attract a loading, as jweb2k has noted if your on maternity leave then you are still employed by your employer. Alternatively they could describe you as a housewife which actually often gets a reduction in premium.

Give them a all back

Skint_Catt

I haven't called them at all yet as I have an interview tomorrow so I hope I don't need to just don't get the logic!

dacouch

An unemployed person (Depending on the type of unemployed person) is normally a higher risk of a claim to an Insurer.