Outraged at 100% increase on Motor insurance for Unemployed Covid-19, classed as HIGH RISK

Ema1_2

Hi

I’m not sure if you are aware of the scandal brewing in the Car insurance industry ??

I am a professional Senior Manager who unfortunately was made redundant at the end September, I tried to get car insurance to cover a van I have.

 I used “Compare the  m------”  and put down that I was unemployed in still asked what I did so I put Operations Manager.

Got my quotes picked to go with the third cheapest but a company I had been recommended by a friend as being “great customer experience”

After 2 days they left me a email saying my insurance might be invalid.

Of course I phoned straight away, the guy straight of the bat was being very strange very patronising, there where a couple of minor errors with date range on a accident I had and a speeding fine 4 years and 360 days, (5 years limit )

Then he asked me to confirm my employment status with a quizzical ironic tone to his voice, I said as I filled out on Compare the M------ " I’m unemployed due to redundancy, he said that’s not what it showed  his side, I assured him I had filled it in legitimate on “compare the m------- ”

His words then astounded me, none of the normal insurance companies deal with unemployed, there was only 1 , and that would now be  be £480 pounds, £223  for employed + the £150 compulsory went to £480 +  £400 compulsory

And the words he used Unemployed are High Risk

I’m shocked at the  Broker,  but I’m even more shocked by the insurance world capitalizing of the back of COVID 19 , doubling insurance of economic victims of the crisis

I’m shocked and disappointed

bradders1983

Why? Its how insurance works. Certain jobs (or no jobs) are seen as higher risk than others. Bankrupts are seen as higher risks than others. People who live in inner city Manchester and park on the street are higher risk than people who live in Thurso and park their car in the garage.

Nothing you can do about it other than a) get a job, and/or b) shop around. Nothing to gain by blind loyalty in the car insurance world.

Browntoa

So you "forgot" about the accident and a speeding fine.

Then are astounded that they increase your premium. You are lucky that they didn't cancel the policy as that would have cost you a whole lot more in premium going forward

RobM99

When I was made redundant, my insurance went up because "You have more time to drive".
My argument that I had no income to pay for petrol didn't count!

unholyangel

The insurance premium isn't based on your personal risk. It's based on the risk of everyone else with the same data markers.

It's your no claims bonus/discount that reflect your personal risk

MattMattMattUK

Ema1_2 said:

I’m not sure if you are aware of the scandal brewing in the Car insurance industry ??

It is not a scandal.

Ema1_2 said:

I am a professional Senior Manager who unfortunately was made redundant at the end September, I tried to get car insurance to cover a van I have.

Then you are not a "professional Senior Manager", you are unemployed.

Ema1_2 said:

After 2 days they left me a email saying my insurance might be invalid.

It probably would be, because your job affects your insurance.

Ema1_2 said:

Of course I phoned straight away, the guy straight of the bat was being very strange very patronising, there where a couple of minor errors with date range on a accident I had and a speeding fine 4 years and 360 days, (5 years limit )

Judging by the way you have written your post, I imagine he may have been responding in kind to your tone.

Ema1_2 said:

Then he asked me to confirm my employment status with a quizzical ironic tone to his voice, I said as I filled out on Compare the M------ " I’m unemployed due to redundancy, he said that’s not what it showed  his side, I assured him I had filled it in legitimate on “compare the m------- ”

Once you have used the comparison site, you are then responsible for checking the information that has been passed to your chosen insurance provider and correcting anything which may not be accurate.

Ema1_2 said:

His words then astounded me, none of the normal insurance companies deal with unemployed, there was only 1 , and that would now be  be £480 pounds, £223  for employed + the £150 compulsory went to £480 +  £400 compulsory

That sounds about right.

Ema1_2 said:

And the words he used Unemployed are High Risk

Statistically they are.

Ema1_2 said:

I’m shocked at the  Broker,  but I’m even more shocked by the insurance world capitalizing of the back of COVID 19 , doubling insurance of economic victims of the crisis

The insurance world is insuring based on risk, as they always have done, that is hardly surprising being as it is what their entire business model is based on.

diggingdude

In some ways caronavirus might be good for this country. 

Unemployed have usually proportionately paid more for insurance. It's seen as an issue now as people who have always worked and assumed the poor/unemployed were just lazy are realising the unemployed can't afford a car to move and get a job. 
Universal credit/benefits in general have never really been enough to love on. It's in the public's attention right now because people who have never claimed benefits before are having to start living on them and realising how hard it is. 


I guess my point is alot of people have previously judged those on low/no incomes and are now finding out how blooming hard it is to live on them and get off them 

But yes...you were lucky not to have your insurance cancelled due to not declaring things properly. Comparison sites state check the policy before buying on the sellers website and you didn't 

epm-84

RobM99 said:

When I was made redundant, my insurance went up because "You have more time to drive".
My argument that I had no income to pay for petrol didn't count!

That makes no sense. 

Firstly, your premium should be calculated based on annual mileage so if you had a long commute and normally did hundreds of miles per week but only expected to drive 30 miles per week while unemployed that should cause the premium to decrease.

Secondly, if you have more choose of when you can drive e.g. for going shopping that should decrease the risk of an accident e.g. you're less likely to scrape another car in a car park if it's 3/4 empty on Tuesday at 10am than if it's a Saturday afternoon and you have to use the only available space between two large or badly parked cars.  Also reduced chance of hitting the back of another car at traffic lights or a roundabout at a quiet time.

vacheron

When My wife was a stay at home mum I put her occupation down as Unemployed and her insurance shot up 40%, I then changed the description to "Housewife / Househusband" and it only went up 10%.
If you are living off your redundancy money, you may even be able to get away with "Independent Means" but the definition of that is slightly more flaky. 

Not surprised that the price jumped when factoring in all the "little overisights" though, especially as they...quite coincidentally i'm sure... all seemed to work in your favor!

diggingdude

Don't forget as well, if you are unemployed you are less likely to maintain and service your car regularly etc. In insurance companies eyes you are a higher risk if unemployed

Jeremy535897

Universal credit/benefits in general have never really been enough to love on.

Quite the reverse I think (couldn't resist, sorry).