Unemployed punished with higher car insurance premiums

By Tom Farley, Mon 23 Jan 2012 - Published in Car Insurance

Unemployed motorists are being charged higher car insurance premiums, according to new research carried out by the BBC.

The organisation asked three major brokers, via the Association of British Insurers (ABI) to conduct research into the high prices of insurance and found that average rates for the unemployed were 30 per cent higher but could rise to 63 per cent.

Officials at the ABI believed that people without a job were viewed as not being able to keep up with the maintenance on their vehicle and therefore were deemed to be a high risk customer.

Graeme Trudgill, from the ABI, told the source: "Our insurance brokers tell us that when they look around, they see some insurance companies don't charge anything if you lose your job, whereas others can charge up to 63 per cent more."

It comes after the AA's British Insurance Premium Index found that car insurance rates rose by 5.4 per cent over the last three months of 2011 adding to an overall 15.3 per cent increase for the entire year.

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