Can I get car insurance without having a job?

In every state, there is either a mandatory insurance law or a financial responsibility law in place. The purpose of these laws is to ensure that drivers and vehicle owners can fulfill their legal obligations and cover damages when they are liable for the incident.

Since it is a legal requirement to carry insurance, anyone who can legally own a car can also legally buy coverage through a private insurer or a state-sponsored company.

There may be factors that will raise your rates or dictate which insurers are willing to accept your risk class, but in all scenarios, people who can own a car and have a driving privilege will be able to buy a policy no matter their employment status.

Start comparing car insurance rates now by using our FREE tool below!

What rating factors are used to assess risk?

Many different factors make you a low-risk or high-risk driver. In the car insurance industry, these factors are called risk or rating factors.

Some of the factors that are used to help calculate premiums are common knowledge, but many may be very surprising to the average person with no professional insurance experience.

If you are not familiar with all of the different things an underwriter will consider as they are reviewing your insurance application, here are those factors that may have an impact on your rates:

Driving Record

Your driving record is the single most important factor used to assign you to a risk class.

If you have a clear record free of accidents and violations, you are much more likely to be assigned to a preferred class with the best rates.

Those with violations or few accidents are often seen as standard risks, but some inexperienced drivers with flaws will automatically be thrown into a high-risk policy.

Rating ZIP Code

Where your vehicle is parked primarily will be called to rating ZIP code. This is usually your home but can be other addresses if that is where the car is stored. This affects premiums because your rates for physical damage will be based on the claims reported in that ZIP code.

Age, Gender, Marital Status

Age, gender, and marital status are three demographic factors that often work together. Male drivers pay the most for their insurance as a whole, but rates are strongly based on the age of the driver.

If you are an inexperienced male, you will pay more than your counterparts.

The difference in premiums will go down over time, as long as you maintain a good driving record. Getting married does give males a break when they are young.

Vehicle Usage and Mileage

How your vehicle is used and how often it is used will also be considered.

When you drive in congested traffic, you have a long commute to work in the wee hours of the morning, or you are on the road more than the average person, you have more exposure to a loss.

Extra vehicles tend to have lower premiums because they are not used very much.

Vehicle Type and Coverage

It is going to cost more to insure a luxury vehicle than it will to insure an older vehicle that holds little value. While age does play a role, it is actually the safety record and claims record that dictates what drivers will pay.

If a car is known for causing a great deal of damage to other cars or injuries to passengers, the liability coverage will be high-priced.

What are the risk classes?

Those who are least likely to file a claim are least likely to cost the insurer money.

These drivers are part of a preferred risk class. Anyone who is more likely to file a claim will either be assigned a standard or high-risk classification.

Which factors are affected by your employment status?

Not all rating factors are affected by your employment status, but many are either directly or indirectly.

It is up to you to understand which factors can change once you go from being employed to being on the search for employment.

Read more: Compare Unemployed Driver Car Insurance Rates

Here are some of the factors that may change and that will ultimately change your premiums:

Professional or Affiliation Discounts

Some companies will adjust your premiums based on your profession or your affiliation with professional organizations.

If you are classified as a professional who is known to pay attention to detail or be careful, you may lose discounts once you update your status.

Vehicle Usage and Mileage

You are no longer commuting to and from work when you are without a job. If you were a commuter, you can change your class to pleasure usage and lower your annual mileage.

These are two areas that will drive your premiums down.

Rating ZIP Code

If you used to store your vehicle close to work, you may have a change in premiums once you change your primary address. This can lower premiums if you worked in a metropolitan area.

Read more: Why does my car insurance need my work address?

Credit Score

Some states allow insurers to assess credit-based insurance scores when calculating rates. If your score drops, you may be put into a riskier class.

Insurance companies cannot deny you coverage just because you are not employed. The company can, however, review the demographic factors that are affected by your status.

If you would like to find a lower-priced policy that you can afford, you can price insurance using an online rate comparison tool.

Case Studies: Getting Car Insurance Without a Job

Case Study 1: Coverage for Unemployed Car Owners

Sarah recently lost her job and is currently unemployed. However, she still owns a car and needs car insurance to fulfill her legal obligations. Sarah uses an online rate comparison tool and obtains quotes from different insurance companies. Despite her employment status, she finds affordable coverage that meets her needs. Sarah purchases the policy and secures car insurance without having a job.

Case Study 2: Adjusting Coverage Based on Employment Status

John was previously employed and had a long commute to work. However, he recently became unemployed and no longer needs to commute. He contacts his insurance company and informs them of his change in employment status.

By adjusting his policy from a “commute” usage class to a “pleasure” usage class and lowering his annual mileage, John is able to lower his premiums and save money on car insurance.

Case Study 3: Impact of Employment Status on Discounts

Emily used to receive professional discounts on her car insurance policy due to her previous employment. However, she recently became unemployed and lost those discounts. Emily decides to explore other insurance options and uses an online rate comparison tool to obtain quotes. Despite the loss of her professional discounts, Emily finds competitive rates from different insurers and chooses a policy that suits her needs.

Start comparing car insurance rates now by entering your ZIP code in our FREE tool below!