unemployed and car insurance £80 dearer!

L1zz13_2

My hubby phoned up his car insurance company to get a better deal on his insurance. He has been with them 12 years and was put through to the loyalty department! While looking into his account they asked if he was still in the same employment, he mentioned that he is unemployed and seeking work, they promptly added £80 to the premium and said it had been noted! talk about kicking a man when he's down. The excuse is that if you are job seeking you use the car more, have these people not heard of the internet where you can seek work without driving around using your expensive petrol.
The problem with leaving the company is that we have my car insured with the same company and all "discounts" applied to the account is in my name? so if hubby changes companies my insurance will go up because of the 2 car discount. My insurance has an outstanding claim that the company is trying to recover monies from a 3rd party, so I am "stuck" with this company until the claim is settled. (I have a premium added to the insurance price until the monies are recovered) It's one big mess.......:mad:

dunstonh

The excuse is that if you are job seeking you use the car more

That is the polite way of saying that the unemployed (as a statistic) are more likely to generate a claim due to fraud. It's an unfortunate situation but pricing is based on statistics and a pooling of people.

It is a good job he did call as had he had a claim, then the insurance would not have been set up with the correct disclosure.

Quentin

Your policy will require you to tell your insurer about a number of changes, including changes in employment. Not doing so was a breach of the policy conditions, and now that they have found out they have adusted his premium in line with his new profile - nothing to do with kicking him!

If you have your husband as a named driver on your car, then you too need to inform your insurer regarding him being unemployed!

Regarding your open claim, this should not stop you changing insurer. If you find a better deal elsewhere, explain to the new insurer about the ongoing claim and ask that if the matter is resolved as a non fault claim and your NCD is reinstated they will adjust the premium to take this into account.

L1zz13_2

Hmmmm, I know what you are saying, but it still stinks that because you are genuinely unemployed they hit you with an increased premium....
Thanks for your reply

Spiderham

L1zz13 wrote: »

but it still stinks that because you are genuinely unemployed they hit you with an increased premium....

That will be because from their experience unemployed customers will be a worse risk than those in his previous job so they accordingly charge differently. It is insurers' interests to charge more for higher risks and less for lower risks, the way they determine this will be from their own experience of customers.

rs65

L1zz13 wrote: »

Hmmmm, I know what you are saying, but it still stinks that because you are genuinely unemployed they hit you with an increased premium....
Thanks for your reply

Look on the bright side - when he celebrates getting a new job he can also celebrate his premium reducing.