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Unemployed being refused new car insurance policy!

Just noticed that some car insurance companies are refusing to sign you up for a new policy if you are unemployed. I find this rather unfair with the current climate of high unemployment.

Any idea why the insurance company are targeting unemployed in this way?

Comments

  • themull1
    themull1 Posts: 4,299 Forumite
    Maybe because they think if you're unemployed you won't be able to afford the monthly dd's. Dont know why you wouldn't be able to pay up front though.?
  • huckster
    huckster Posts: 5,614 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It is just if you are unemployed, that you have more access to the car, as if you were at work the car would be parked during your shift hours. Also probably they have stats that show a higher claim risk for unemployed.
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
  • dunstonh
    dunstonh Posts: 121,459 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Unemployed people are higher risk. Some insurers have gone for the cherry picking of just low risk.

    BTW, what we have now is not high unemployment. You want to go back to the 80s for that.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jazzy
    jazzy Posts: 1,120 Forumite
    Part of the Furniture 500 Posts Name Dropper
    On the other hand if you are unemployed you cannot afford to have more access to the car with the price of petrol. Also when you set up a new policy you state your annual mileage. So perhaps it is that the fact that the unemployed are a higher risk?
  • jazzy
    jazzy Posts: 1,120 Forumite
    Part of the Furniture 500 Posts Name Dropper
    dunstonh wrote: »
    BTW, what we have now is not high unemployment. You want to go back to the 80s for that.

    Got to disagree on that one, the true unemployment figurers are better hidden nowadays.
  • Ronaldo_Mconaldo
    Ronaldo_Mconaldo Posts: 5,197 Forumite
    It turns out that unemployed people are more likely to make claims. Possibly when things get tough then they go and pull an insurance scam to make ends meet.
  • dunstonh
    dunstonh Posts: 121,459 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It turns out that unemployed people are more likely to make claims. Possibly when things get tough then they go and pull an insurance scam to make ends meet.

    Insurance fraud always goes up in a recession. Just as crime in general does as well as scumbags decide that when they dont have something, they can just steal it from someone who has.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • hcb42
    hcb42 Posts: 5,962 Forumite
    this isn't new, I don't think. I worked in insurance in the 1980s..
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