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

Skint_Catt

yeah ok - but why?

dacouch

A lot of the type of people with occupations Insurers try to avoid such as entertainment, sports, bookies, general dealers, itinerate workers etc sometimes say they are unemployed to get round the Insurers. The other factor is some of undersirables such as drug dealers and other crimanals will put their occupation down as unemployed as they are unemployed.

You also have the Frank Gallagher type of long term unemployed.

If you are temporarily between jobs then often Insurers will not load as this type of unemployment is often not a higher risk to them

AnnaSB

Often, when notifying insurers of a major change, such as employment status, other things are missed. In the case of motor insurance, these could include amending the use of the vehicle, restricting the annual mileage / deleting business mileage.

For home insurance if you are unemployed you will be home all day and there is usually a question on your application form asking whether the home will normally be occupied during daylight hours.

Ensuring that these things are factored in, may save you some money.

Ultimately, you need to ensure that insurers are advised of any changes, which affect the material facts already supplied to them.

dunstonh

With regards to comment higher up, someone on maternity leave is not unemployed and it is not a job change. You are still employed but on leave. However, when you do have the child, it is worth making sure the insurer is aware as some insurances get cheaper when you have children. It may be one worth leaving for renewal (to avoid an admin charge) but it is worth noting.

Also, as docouch says in #13. A temporary period of unemployment between jobs is not going to need notifying. Long term does absolutely but short term doesnt.

duffyinthesun

I have just informed direct line that I am now unemployed, they want £15.75 for a change of occupation, they are taking the micheal

dunstonh

duffyinthesun wrote: »

I have just informed direct line that I am now unemployed, they want £15.75 for a change of occupation, they are taking the micheal

Was the £15.75 an admin charge or an increase in premium due to higher risk?

Skint_Catt

Sounds about right for an admin fee - I got charged this when I moved house :rolleyes: (and no the premium didn't change)

lolly5648

Is it better to put retired or unemployed. I have retired but am now looking for work.

Athena_

If the premium increases because you change your occupation to unemployed and you genuinely can't afford to pay it, some companies will agree to write the charge off but you will not be entitled to the refund when you call back up to say you are employed again (assuming this reduces the premium)

The poster who was told her premium had increased because she was 'less likely to be able to afford the payments' - this isn't true so the call handler was probably guessing as someone else said. Bear in mind a lot of people pay their premium as a one off upfront payment, so this reason wouldn't apply to them for a start!

Most insurers work out their pricing structures in accordance with statistics (e.g using previous claims history) so will price their policies accordingly. Although on one hand you could argue unemployed people will use the car less, and on the other hand they will use the car more, ultimately it will all boil down to what the claims statistics for that company show.

wilmist

If you are about to be dismissed because you are off work sick what should you put. At the moment I still have a job but I am off work long term sick and my employer said they are now going to dismiss me. I spoke to one insurance company and they said put retired.
Is this correct?