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

dwsjarcmcd

While I fully accept dacouch's reasons, I don't think insurers have kept up with the current economic situation. Yes the groups of people mentioned rightly attract higher rates but increasingly this people affected are 'white collar' workers where the risk must have decreased for reasons that other posters have mentioned.

In fairness to insurers, they work on statistics i.e. history and this will not have fed through yet. I feel some common sence should be adopted and they should use either the persons 'normal occupation' i.e. a bank manager as they are more than likely to be seeking a similar role, or their previous occupation if it was within a reasonable timescale, say the last 12 months.

I would also say that many insurers don't consider temporary periods of unemployment and load the premiums to reflect the new status. I hope some are more enlightened!

David

wonderland_2

Just a warning - when I told my insurer I had lost my job they immediately cancelled the policy as it "only covered those in employment". They offered me another one for almost 3 times the original policy and, when I declined their kind offer in favour of something only twice as expensive from another insurer (which I had quickly found on one of the search engines), they charged me the cancellation fee of £35 for the policy that they were cancelling.

Whilst I can understand them not wishing to renew a policy, and that the actuarial bits and pieces are based on aggregated information about the likelihood of accidents of those without a job etc, given that the only thing that had changed on a personal basis was my employment status, thereby reducing the number of miles travelled, I was horrified. Not least because I am now almost £500 out of pocket at a time when I need the money most. Needless to say I am currently drafting a letter of complaint, but I suspect that they were perfectly within their rights.

Anyway, the warning to others is: do the Moneysaving search for new insurance via the various websites before you call your current insurer, just in case.