How to Get Cheap Temporary Car Insurance for Unemployed Drivers?

If you own a car then you’re bound by laws that you also purchase auto insurance for it. Even if you plan on not using it for months, you’re still required to have functional car insurance that covers against liabilities. While maintaining car insurance isn’t always too cheap for any typical driver, the formally unemployed personnel might even have to pay more than double the rates if they’re not careful.

Why are Unemployed Car Insurance rates higher?

There are several reasons why a formally unemployed driver is required to pay more towards car insurance premiums. At the initial stage of calculating premiums, the auto insurance providers use a variety of information such as driving history, type of car, etc which also consists of the occupation of the driver that up to a threshold helps reflect the risk and their current ability to manage expenses.

The following are the main reasons why unemployed drivers are charged higher premiums:

  • An unemployed person might use their car more in the absence of any work hours thereby increasing their chances of getting into an accident.
  • When looking for opportunities or giving interviews, the driver might travel unfamiliar roads and destinations over unfamiliar terrain which again increases the risk of getting into accidents.
  • The present lack of continuous income reflects that the driver is temporarily inept at spending regularly towards maintaining the condition of their car to the fullest.
  • Statistically, drivers all over the world are known to make more claims during their unemployment period.

While these reasons are somewhat feasible yet weak to actually demand more rates, the auto insurance providers are bound by their risk management strategy to charge more. However, there are a few things that can be done to reduce the rates to a good extent.

Secure Cheaper Car Insurance Unemployed or Retired

The following are the methods and tips that can help you save significantly on temporary Auto insurance for unemployed drivers:

Black Box

It is a device installed in your car to track your driving activity which transmits information to your auto insurance provider about driving habits which can then help determine accurate insurance rates. It’s best for experienced safe drivers to use this to save on premiums.

No Renewal, Pay Once

Some car insurance providers won’t value existing customers and thus you should not let your car insurance plan automatically renew and instead you should seek competitive quotes from other auto insurance providers. Also, consider making a one-time payment as it greatly reduces the cost of auto insurance.

Lower the Mileage

If you could manage to use other means of transportation other than your car, then you will end up lowering the miles traveled in your car which directly affects the rate of the car insurance premiums. Less driving nearly equals lesser chances of getting into accidents, along with the car getting depreciated slower than usual.

Security Features

Making modifications to your car will cost you more to insure but installing safety features is acceptable as it reduces the chances of getting seriously injured. Installing an ABS system, airbags, theft tracking system, etc can help you protect your car better and will reduce the rates of auto insurance by some amount.

No Claim Bonus

There’s a special discount which significantly reduces the premium and it’s in the form of No Claim Bonus. When you’ve previously never made a claim during the term of your previous policy then you can use this discount. Even in the cases of minor accidents, consider paying out of pocket for repairs than filing for a claim.

Get Quotes

This is the best way to get the cheapest rates. Research your local auto insurance providers to get the most competitive cheaper car insurance rates.

Alias Insurance can help you with getting the cheapest car insurance quotes besides also assisting you with any queries and questions regarding car insurance. Get the best available rates by comparing multiple quotes within a few minutes.