MSE News: Jobless get walloped when buying insurance

patman99

Maybe they should have compared unemployment with factory worker.
When I got made redundant I didn't even think of telling my insurers, in fact, it slipped my mind in amongst dealing with the DWP and other people.

Must admit, even now, my job role as far as my insurers are concerned is factory worker. My actual role is Q.I. but as I work in a factory, I feel the factory worker description is close-enough.

raskazz

MSE_Dan wrote: »

It's a tough one - I understand risk profiling, but can't help wishing it was more sophisticated than by one single action, the price someone owes goes up by £100s.

The price someone pays should be decided in a much more holistic fashion than that, in my view.

But it won't be by a "single action". There will be interaction with other factors by matricised rating - principally MOSAIC profile, payment method and credit checking/validation scores such as electoral roll match.

With respect, you clearly don't know what you're talking about.

Consumerist

What about the retired - who may also not be employed?

TraderDJ

I'm very interested with this, have been playing with quotes for months to get the lowest etc (adding 2 drivers brings it down a lot (over half), if I add 3 it depends on the 3rd as to whether there is a saving or whether it costs more).

I have tried 'company director, less than 5 staff' and my quotes are 7 pounds less than as a student (living away, student living home is more for some strange reason!).

It's not worth getting into a battle with them for 7 quid, so I'll stick with Student whilst I'm at uni, but anyone can setup a company. So if I setup a company and made myself director today, am I a company director or a student?

My company may not be an active company (or certainly not one earning enough to go through the Self Assesment process), but how do they determine a company director? As long as I'm listed at Companies House as a Director.... I assume they'd try arguing with some kind of loophole to stop that game though!

I'd do it without questioning it because if I'm listed as a director I consider myself to be a director - no matter whether my company is Argos or a home based trader on ebay selling 1 thing a year! Could argue with them to see what happens - but obviously there is the risk of them voiding policies, trying to prosecute for fraud etc, so would be interested to know.

And if they claim Company director means being on the board of a company you don't own (even though you can be both), then what if a friend was to setup said company....??

There are many ways to bend the truth in all instances in life, some are outright lies and unacceptable, but I don't think putting director is, especially when faced with paying hundreds more!

I'm guessing they may use the 'seeking employment' clause, similar to homemaker, but you can technically be a director and be in FT employment somewhere else (or seeking it). Or you can get paid through a service company, as certain govt officials know!!


I've had a play with this after reading the article, my unemployment cost jumps a fortune (£800 (with additional drivers)) to £1,400. Even graduate < 6 months jumps a good £100. Certainly worth knowing, because I may have to scrap the car if I'm not straight in a job after uni!

So in those cases - being a company director would save me hundreds vs Unemployed!

cardiffforthefacup

I feel bitter and betrayed that not only being called a pariah for being unemployed despite thinking the way to go was further training and now having nearly £50,000 of student debts plus £9,000 career development loan. I am now a mature unemployed graduate and quotes for insurance have tripled since the same time last year. I noticed that if I say I am employed it halves. Where is the justice, it just makes everything more hopeless

Print_Screen

Well if you're unemployed I guess the theory goes (and I assume the stats) that you are more likely to drive your car as you have more time to do it during the day. This is as opposed to say an office worker in a city who uses public transport to get to work and leaves the car at home.

However what it doesn't take into account is that being unemployed you may not be able to afford to run a car.

callum9999

westv wrote: »

What about those who are volunteering whilst looking for paid employment? Even though their work isn't currently paid voluntary work is still a form of employment so presumably someone who did voluntary work in, say, a charity office somewhere could say they were a clerical worker or similar.

I don't think voluntary work counts as "employment".

"If you're a homemaker, housewife or househusband, ensure you state that on insurance policies, rather than saying you are unemployed, as that should cut the price."

How is there remotely a difference between unemployed and "homemaker"? All unemployed people (assuming they have a house) are homemakers, and all homemakers are unemployed...

dacouch

callum9999 wrote: »

I don't think voluntary work counts as "employment".

"If you're a homemaker, housewife or househusband, ensure you state that on insurance policies, rather than saying you are unemployed, as that should cut the price."

How is there remotely a difference between unemployed and "homemaker"? All unemployed people (assuming they have a house) are homemakers, and all homemakers are unemployed...

A homemaker is not drawing JOB SEEKERS Allowance

vaio

is that an official definition or an informed guess?

JuicyJesus

callum9999 wrote: »

How is there remotely a difference between unemployed and "homemaker"? All unemployed people (assuming they have a house) are homemakers, and all homemakers are unemployed...

A homemaker is someone who stays at home and runs the home. Someone who is "unemployed" is looking for work or between jobs. It's about intent.

The risk changes because of the definitions. Someone who has a desperate need for money will statistically be more willing to go to different lengths to obtain it, including committing insurance fraud (I am not saying all unemployed people will commit fraud, or that no wealthy/comfortable people will do so; just that statistically they are more likely, as a group, to do so). A "homemaker" will be supported and paid for, and is less likely to have a desperate need than someone who is currently out of employment.