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Unemployed pay £227 more for car insurance

Although the cost of insuring a car is falling generally, those without a job are paying 58% more than those in work, new research from MoneySuperMarket has revealed.

01 May 2014
Insurance Lady

It found that motorists fork out an average of £390 a year to cover their vehicle, compared to £617 for the unemployed, with premiums for those out of work falling by just 2% in the past 12 months.

That drop compares unfavourably to the decline in insurance costs overall, with premiums falling from £439 in the first three of months of 2013 to the current rate of £390, a decrease of 11%.

Car insurance expert at MoneysuperMarket Kevin Pratt said: "As car insurance is a legal requirement those who are likely to be struggling financially are least able to afford these higher premiums and in some cases might be priced out of being able to insure their vehicle.
"It is easy to see how this can become a vicious cycle of not having a car to help find and get work because they don't have an income to be able to afford to drive it."

He added: "It could also be a huge barrier for those seeking employment, especially in rural areas where people depend on having their own vehicle, as well as a factor where potential job opportunities involve working unsocial hours."

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