Car insurance employed or unemployed?

natnhay

Hi my daughter passed her driving test recently.
She is buying a car and has had insurance quotes as employed.
Unfortunately she has been told that as of 16/2/14 she will no longer have a job.

She is collecting the car on sat 15th Feb.(All paid for)
So does she insure her self as employed or unemployed.She does'nt want to get into trouble if she declares herself as employed if she needs to declare unemployed.TIA

ilikewatch

What she probably should do, is to insure the car for the 15th as being employed, then contact the insurer on the 16th and inform them that she is no longer employed, thus paying an admin fee to change the details on top of the (probably quite large) increase in premiums due to her higher risk circumstances*.

If it was me, in reality I would probably just tell them I was unemployed in the first place and save myself the admin fee.

*Unless she's in a particularly high risk job, such as journalist or professional sportswoman, in which her premium may drop when she becomes unemployed.

Quentin

She needs to tell the truth about her occupation, and if unemployed should say so.

If she takes out insurance as employed, then informing them next day she is unemployed will result in a mid term change admin fee which will be avoided by taking out the policy as unemployed.

*Scarlett

Get q's as unemployed as this will be the status unless she has a new job the next day.

If she insures the car as an employed person then she would normally have to inform the insurer of a change circumstances but some may only require this at renewal time but you would need to check with individual insurers. There will normally be a fee to change anything mid term.

natnhay

Hi there will be a difference of £600 between the employed and unemployed quote.She purchased the car last week,and has now has paid in full,so there;s no getting out of the deal.She has arranged to pick up the car on Saturday and will insure it from saturday.Had she have known beforehand about her employment status she probably would have waited until she was in employment again,before buying a car.

Prothet_of_Doom

So cheaper not to Register with the Job centre, and not be unemployed ?

TadleyBaggie

Prothet_of_Doom wrote: »

So cheaper not to Register with the Job centre, and not be unemployed ?

Not really, a years worth of JSA is around £3500...

forgotmyname

The issue may get worse if the company they chose for her dont cover young unemployed people so having to cancel the policy and start a new one.

If she will be claiming benefits. Job seekers or whatever its called this week then she is unemployed. So must declare that.

natnhay

She will not be claiming benefit as she is also a student and is registered with a university. I've rang the insurance company and have been told to select student,so should be ok.

powerlady

I have just been told by my Insurance Company that they now won't cover me as unemployed. The Broker said they could found me another insurer on their panel, but I will have to pay an ADDIONAL £1500!! They have told me this tonight at 7pm; I am actively seeking employment but can't now use my car. the Insurers in question have just taken my monthly premium today for May. Any advice and help please????

forgotmyname

Go elsewhere.

Have you checked all the comparison websites to see what a fair price is?