Best Car Insurance for Unemployed Drivers in 2024 (Top 10 Companies)

When you are in search of the best car insurance for unemployed drivers, consider top companies like State Farm, Progressive, and Liberty Mutual. These companies prioritize affordability, considering credit score, mileage, coverage, and driving record.

Although you’re no longer driving as much when you’re unemployed, you might be surprised to find out that doesn’t always mean lower insurance rates.

Our Top 10 Picks: Best Car Insurance Companies for Unemployed Drivers

Car insurance rates for unemployed individuals are often more expensive than average. Even when unemployed, car insurance continues to be a must to get around on your job hunt as well as your daily life. It’s possible to get cheap car insurance while unemployed with a little effort.

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#1 – State Farm: Top Overall Pick

Pros

• Affordability: Competitive rates as low as $100 for minimum coverage.
• Customer Service: Known for excellent customer service.
• Usage-Based Discount: Provides up to 17% discount for usage-based policies.

Cons

• Limited Discounts: Might have fewer discounts compared to some competitors.
• Rate Variation: Premium rates may vary based on location and other factors. Learn more about their rates in our State Farm car insurance review.

#2 – Progressive: Best for Innovative Technology

Pros

• Technology Savvy: Geared towards technology-savvy customers with up to 30% discount.
• Competitive Pricing: Offers competitive rates starting at $110 for minimum coverage.
• Safety Features Discount: Provides up to 8% discount for safety features. Read more about their discounts in our Progressive car insurance review.

Cons

• Limited Physical Presence: Some customers may prefer a more traditional, local approach.
• Not Suitable for All Drivers: Rates may be higher for certain demographics or driving histories.

#3 – Liberty Mutual: Best for Multi-Policy Discounts

Pros

• Custom Coverage: As mentioned in our Liberty Mutual car insurance review, they offer more than custom coverage options.
• Usage-Based Discount: Provides up to 6% discount for usage-based policies.
• Safety Features Discount: Up to 6% discount for safety features.

Cons

• Higher Rates: Monthly rates may be comparatively higher, starting at $120 for minimum coverage.
• Limited Discounts: Some competitors may offer more varied discount options.

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#4 – USAA: Best for Military Savings

Pros

• Military Savings: Geared towards military members with special savings.
• Usage-Based Discount: Offers up to 15% discount for usage-based policies.
• Safety Features Discount: Up to 4% discount for safety features.

Cons

• Limited Membership: Only available to military members and their families. Learn their limitations in our USAA car insurance review.
• Online Presence: May not have as robust online features as some competitors.

#5 – Allstate: Best for Feature-Rich Policies

Pros

• Multiple Coverages: Best for those seeking multiple coverage options.
• Usage-Based Discount: Offers up to 25% discount for usage-based policies.
• Safety Features Discount: Up to 7% discount for safety features.

Cons

• Higher Rates: Rates may be on the higher side, starting at $105 for minimum coverage.
• Customer Service: Some reports of lower customer satisfaction as seen in our Allstate car insurance review.

#6 – Nationwide: Best for Family Coverage

Pros

• Flexible Policies: Best for those seeking flexible policy options.
• Usage-Based Discount: Offers up to 6% discount for usage-based policies.
• Safety Features Discount: Up to 6% discount for safety features. Learn more about their discounts in our Nationwide car insurance discounts article.

Cons

• Rates: Rates may vary and be higher in certain regions.
• Limited Local Agents: May not have as many local agents as some competitors.

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#7 – Farmers: Best for Customizable Policies

Pros

• Affordable Options: Known for providing affordable coverage options.
• Usage-Based Discount: Offers up to 15% discount for usage-based policies.
• Safety Features Discount: Up to 4% discount for safety features.

Cons

• Coverage Options: As outlined in our Farmers car insurance review, some customers may find limited coverage options.
• Discounts: May offer fewer discounts compared to competitors.

#8 – Travelers: Best for Affordability and Discounts

Pros

• High-Risk Drivers: Best for high-risk drivers seeking coverage.
• Usage-Based Discount: Offers up to 20% discount for usage-based policies.
• Safety Features Discount: Up to 6% discount for safety features.

Cons

• Rates: Premiums may be higher for some drivers.
• Customer Service: Some reports of lower customer satisfaction. Learn more in our Travelers car insurance review.

#9 – American Family: Best for Loyalty Rewards

Pros

• Family-Friendly: Geared towards families with special discounts.
• Usage-Based Discount: Offers up to 25% discount for usage-based policies.
• Safety Features Discount: Up to 7% discount for safety features.

Cons

• Limited Availability: May not be available in all states. Learn more about their availability in our American Family car insurance.
• Rates Variation: Premiums may vary based on factors like location and driving history.

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#10 – Esurance: Online Convenience and Varied Discount Options

Pros

• Online Convenience: Best for those seeking online convenience. If you want to get a quote read our article called “How do you get an Esurance car insurance quote?“.
• Usage-Based Discount: Offers up to 30% discount for usage-based policies.
• Safety Features Discount: Up to 8% discount for safety features.

Cons

• Limited Local Presence: May not have as many local agents as some competitors.
• Customer Service: Some reports of lower customer satisfaction.

Compare Rates With top 10 Insurers for Unemployed Drivers

Finding the right fit becomes crucial, especially for those navigating unemployment. This guide presents a concise comparison of the best car insurance with full and minimum coverage.

Car Insurance Monthly Rates for Unemployed Drivers by Coverage Level & Provider

How Unemployment Affects Car Insurance Rates

Is car insurance cheaper if you don’t work, or will it go up? It depends. Unemployed car insurance can be cheaper or more expensive than average. If your job search takes you on the road more frequently, expect your car insurance rates to increase.According to the National Institutes of Health, driving more could increase your chances of involvement in a severe accident. Car insurance companies agree with statistics and may see you as a higher risk if you drive more frequently.

Unemployed drivers tend to file more claims than those who’re employed.

That’s because unemployed individuals are searching for employment. During the job search, there may be a lot of roadways and conditions that you’re not used to navigating. However, you can offset the 30 percent increase in car insurance with good credit, a clean driving record, and driving less. According to the Federal Trade Commission, companies offer lower rates to drivers with good credit because they present less risk.

Below you’ll find average annual rates based on credit, driving record, and commute mileage.

Car Insurance Rates for Good Credit, Clean Record, and 6,000-Mile Annual Commute

Good credit and a clean driving record will earn you the cheapest car insurance rates. A longer commute mileage is more expensive, but good credit and a clean driving record can offset high prices. Find out if you can get more discounts for being a good credit driver in our article called “Good Credit Car Insurance Discounts“.

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Considering Contacting Your Car Insurance Company After Job Loss

You should always let your insurance company know of any change in your driving habits. The majority of people put fewer miles on their vehicles when they are unemployed because they are not driving back and forth to work daily, and that can mean a discount.

If you can show that you will indeed be driving less, your insurance company may lower your rates.

Also, a good driving record and an excellent financial standing with your car insurance company will help lower car insurance rates.Being honest with your insurance company is the best policy. A representative can help you to find ways to lower your rates. If your current company can’t help you, it’s time to shop around.

Read more: How much does mileage affect car insurance rates?

Bear in mind that the same rules don’t apply to being retired. Why does being retired affect car insurance? If you’re no longer working, your cars can be rated for pleasure use.Car insurance companies look at retirement differently than they do being unemployed. There are a number of programs and discounts for people that are retired to help reduce rates.

Purchasing New Car Insurance Policy While Unemployed

Can I get car insurance without having a job? It can be a bit harder to get an insurance policy if you are unemployed and in the midst of a job search, but most companies will insure you. Many insurance companies see those who are unemployed as being more of a risk to insure.

Unemployment also raises the risk that you may not make monthly payments or cover the cost of your car insurance deductible. Your best bet in this situation is to shop around. Get several quotes from different car insurance companies and compare the policies. While no specific companies specialize in insuring the unemployed, you will find that some are more understanding of your situation than others.

How to Lower Car Insurance Rates if Unemployed

There are many ways you can lower your insurance rates if you find yourself unemployed and in a situation where you need to lower your bills. Insurance companies provide several incentives and discounts that you can potentially use. Bundling is one of the easiest ways to get a discount on car and home insurance and reduce two bills at once.

There are also more drastic measures you may need to take temporarily to afford insurance while in your current situation. The following are some of the ways you may be able to lower your rates.

• You can reduce your coverage to liability-only coverage as opposed to full coverage car insurance.
• Consider reducing the number of cars in your household.
• If you cannot reduce the number of cars, you may be able to trade in your vehicle for one that costs less to insure. More conservative, less sporty, cars are usually less expensive when it comes to car insurance.
• Consider opting for a higher deductible.
• If you live in an area where public transportation is an option, consider lowering the number of miles you drive annually by taking public transportation more often.

Finding a new car insurance policy while unemployed can be a challenge. If your current policy comes with a high car insurance rate, you may want to shop around and see what others will offer you.

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Unemployed Usage-Based Car Insurance Option

One of the ways to get a lower rate and prove your safe driving habits at the same time is to sign up for usage-based car insurance. Geico, Progressive, Allstate, and many other car insurance companies have usage-based car insurance. Car insurance for unemployed people can be much cheaper with a usage-based program.

Usage-based car insurance may also be called pay-per-mile, pay-as-you-go, or pay-how-you-drive insurance.

Insurance companies use telemetrics devices or apps to measure how many miles you drive and your driving habits. After gathering information for a set period of time, a discount is calculated and applied to your policy. While the car insurance company will still use the same factors to calculate your initial rate, a usage-based program can earn you a fairly big discount.

Pay-per-mile is the only usage-based system that differs, in that your rate is calculated using a base rate as well as a per-mile rate. You are charged the base rate and the total of the actual miles you drive each month. That can mean big savings if you aren’t driving much. If you’re currently unemployed and looking for a new, less expensive car insurance policy, we can help.

Case Studies: Unemployment & Affordable Car Insurance

Explore how individuals facing unemployment navigate the quest for cheap car insurance through a series of insightful case studies. From John’s discovery of State Farm’s competitive rates to Sarah’s embrace of Progressive’s technology-driven solutions, these stories highlight innovative approaches to securing coverage amidst financial challenges.

• Case Study #1 – From job Loss to Affordable Coverage: John recently lost his job, adding financial stress to an already challenging situation. Searching for cost-effective car insurance, he discovered State Farm’s competitive rates as low as $100 for minimum coverage. With a tailored policy and a 17% usage-based discount, John found a solution that eased the burden of insurance costs while navigating unemployment.

• Case Study #2 – Smart Choice Amidst Unemployment: Sarah, a tech-savvy individual, faced unemployment but found solace in Progressive’s technology-driven solutions. Offering up to 30% discounts for technology-related features, Progressive’s competitive pricing starting at $110 for minimum coverage aligned with Sarah’s needs. Embracing innovation, Sarah secured coverage without compromising her budget during these challenging times.

• Case Study #3 – Custom Coverage for Unique Circumstances: Lisa, dealing with a complex set of circumstances during her job hunt, sought a customized insurance solution. Liberty Mutual’s tailored coverage options proved essential, allowing Lisa to navigate unemployment with peace of mind. Despite slightly higher monthly rates starting at $120 for minimum coverage, the flexibility and personalized coverage justified the investment for Lisa.

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