Buy Cheap Auto Insurance for Unemployed Workers in 2024
If you're newly unemployed, you'll want to know how to save money everywhere you can. We'll go over a few ways you can save on your auto insurance, including discounts you can apply for.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Sep 16, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 16, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Unemployed people may pay higher rates for car insurance
- Occupation is one of several factors insurance companies consider when setting car insurance rates
- There are ways to find affordable auto insurance if you’re unemployed
You may be under significant financial strain if you’re unemployed, so what do you do if you’re unemployed but still need car insurance?
Most states in the U.S. require car owners to carry at least a minimum amount of liability auto insurance. So if you own and drive your car, you must have a car insurance policy on that vehicle. However, there may be ways for you to save money and find the best car insurance if you’re unemployed.
Do unemployed people need car insurance?
If you’re unemployed and own a car, you must have insurance on your vehicle. While it’s true that unemployed people may have a hard time paying their bills, you cannot own and drive a car without adequate insurance.
Newly unemployed people may consider revisiting their auto insurance policies and adjusting their coverage levels. If you drive less or plan not to drive much, you could get away with a liability-only policy on your car.
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Is car insurance more expensive for unemployed people?
While some experts suggest that auto insurance rates are higher for unemployed people, new online quote analyses prove this isn’t entirely accurate.
Most companies don’t increase policyholders’ rates if they lose their jobs, and it could be that the company is unaware of your unemployment status. However, if you purchase a car insurance policy while unemployed, you likely won’t suffer a rate increase.
Car insurance companies consider many factors when determining car insurance rates. Some of the most common factors include:
- Age
- Marital status
- Gender
- ZIP code
- Occupation
- Driving history
- Credit history
- Coverage types
The table below compares car insurance rates by occupation.
GEICO Average Auto Insurance Rates by Occupation
Occupation Geico Average Monthly Rates Geico Average 6-Month Rates Geico Average Annual Rates
Homemaker $67.92 $407.50 $815
Professor
w/ College Degree$71.68 $430.10 $860.20
Admin. Asst./Secretary $151 $906 $1,812
Unemployed $153.57 $921.42 $1,842,84
Sales/Real Estate $157.98 $947.90 $1,895.80
Machine Operator $165.33 $992 $1,984
While rates for unemployed individuals vary for many reasons, the table gives you a good idea of what you can expect as you search for auto insurance quotes.
Can I find cheap car insurance if I’m unemployed?
Being unemployed won’t necessarily hinder your attempts to find cheap car insurance. Still, if your unemployment status caused you to make late payments or miss payments altogether, you may not have luck searching for affordable rates.
One of the best ways to find cheap car insurance if you’re unemployed is to find and compare quotes from multiple companies online. Comparing quotes online allows you to see which companies can offer you the coverage you want at an affordable rate.
Logically, choosing a lower coverage level may make the most sense to save money. For instance, if you have a full coverage policy, you may be able to save hundreds of dollars a year by switching to a liability car insurance policy.
The table below compares rates between liability and full coverage policies throughout the U.S.
Average Annual Auto Insurance Rates by State and Coverage Type
States Average Annual Liability Coverage Rates Average Annual Collision Coverage Rates Average Annual Comprehensive Coverage Rates Average Annual Full Coverage Coverage Rates
North Dakota $283 $252 $113 $741
South Dakota $289 $251 $110 $1,206
Iowa $293 $251 $231 $819
Wyoming $323 $270 $223 $817
Maine $334 $332 $147 $1,078
Idaho $337 $285 $118 $833
Vermont $341 $278 $118 $738
Kansas $342 $255 $130 $904
Nebraska $349 $294 $117 $1,058
North Carolina $358 $227 $228 $738
Wisconsin $360 $210 $126 $696
Indiana $372 $207 $172 $672
Alabama $373 $299 $146 $818
Ohio $376 $298 $202 $941
Arkansas $381 $305 $183 $869
Montana $388 $224 $206 $779
New Hampshire $393 $365 $123 $1,354
Tennessee $398 $290 $136 $824
Missouri $399 $255 $200 $843
Virginia $413 $265 $130 $808
Illinois $431 $237 $115 $725
Mississippi $437 $260 $166 $825
Minnesota $440 $303 $195 $935
Oklahoma $442 $212 $90 $856
Hawaii $458 $209 $111 $657
New Mexico $462 $358 $157 $1,300
California $463 $365 $99 $927
Utah $471 $254 $107 $832
Colorado $477 $263 $158 $899
Arizona $489 $259 $184 $932
Georgia $491 $298 $100 $856
Pennsylvania $495 $377 $122 $1,219
South Carolina $498 $200 $229 $718
Texas $498 $341 $187 $1,026
West Virginia $501 $319 $195 $1,016
Kentucky $519 $391 $209 $1,327
Alaska $547 $360 $141 $1,049
Oregon $553 $307 $132 $934
Washington $569 $250 $104 $923
Massachusetts $588 $383 $147 $1,252
Maryland $599 $359 $129 $1,075
District of Columbia $628 $449 $230 $1,308
Connecticut $634 $349 $126 $1,109
Nevada $647 $282 $103 $778
Rhode Island $720 $248 $165 $911
Michigan $722 $214 $173 $827
Louisiana $727 $249 $97 $680
Delaware $777 $297 $113 $1,186
New York $785 $265 $123 $745
Florida $845 $320 $154 $965
New Jersey $866 $267 $167 $897
Read more: Buy Cheap South Dakota Auto Insurance
While a full coverage auto insurance policy can cause you to pay more than double your annual rates, you may have to keep one if you lease or finance a vehicle. Furthermore, going without the collision and comprehensive coverages that make up a full coverage policy means you’ll have to pay to repair damages to your car out of pocket.
Can I get discounts on car insurance if I’m unemployed?
You can still take advantage of any applicable auto insurance discounts if you’re unemployed. Some of the most common discounts offered by car insurance companies include the following discounts listed in the table below.
Common Auto Insurance Discounts
Discount Name Allstate American Family Farmers Geico Liberty Mutual Nationwide Progressive State Farm Travelers USAA
Adaptive Cruise Control ✓ ✓ ✓ ✓ 5% ✓ ✓ ✓ ✓ ✓
Adaptive Headlights ✓ ✓ ✓ ✓ 5% ✓ ✓ ✓ ✓ ✓
Anti-lock Brakes 10% ✓ ✓ 5% 5% 5% ✓ 5%
Anti-Theft 10% ✓ 23% 20% 25% ✓ 15%
Claim Free 35% ✓ ✓ 26% ✓ 10% ✓ 15% 23% 12%
Continuous Coverage ✓ ✓ ✓ ✓ ✓ ✓ 15% ✓
Daytime Running Lights 2% ✓ 3% 5% 5% ✓ ✓
Defensive Driver 10% 10% ✓ ✓ 10% 5% 10% 5% 10% 3%
Distant Student 35% ✓ ✓ ✓ ✓ 10% ✓ 7%
Driver's Ed 10% ✓ ✓ ✓ 10% ✓ 10% 15% 8% 3%
Driving Device/App 20% 40% ✓ ✓ 30% 40% 20% 50% 30% 5%
Early Signing 10% ✓ ✓ ✓ ✓ 8% ✓ ✓ 10% 12%
Electronic Stability Control 2% ✓ ✓ ✓ 5% ✓ ✓ ✓ ✓
Emergency Deployment ✓ ✓ ✓ 25% ✓ ✓ ✓ ✓ ✓
Engaged Couple ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Family Legacy ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 10%
Family Plan ✓ ✓ ✓ ✓ ✓ 25% ✓ ✓ ✓ ✓
Farm Vehicle 10% ✓ ✓ ✓ ✓ ✓ ✓ ✓
Fast 5 ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Federal Employee ✓ ✓ 12% 10% ✓ ✓ ✓ ✓
Forward Collision Warning ✓ ✓ ✓ ✓ 5% ✓ ✓ ✓ ✓
Full Payment 10% ✓ ✓ $50 ✓ ✓ ✓ 8% ✓
Further Education ✓ ✓ 10% 15% ✓ ✓
Garaging/Storing ✓ ✓ ✓ ✓ ✓ ✓ ✓ 90%
Good Credit ✓ ✓ ✓ ✓ ✓ ✓
Good Student 20% ✓ 15% 23% 10% ✓ 25% 8% 3%
Green Vehicle 10% ✓ 5% ✓ 10% ✓ ✓ ✓ 10% ✓
Homeowner ✓ ✓ ✓ ✓ 5% ✓ 3% 5% ✓
Lane Departure Warning ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Life Insurance ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Low Mileage ✓ ✓ ✓ 30%
Loyalty ✓ ✓ ✓ ✓ ✓ 5% ✓ ✓ ✓
Married ✓ ✓ ✓ ✓ ✓ ✓
Membership/Group ✓ ✓ ✓ 10% 7% ✓ ✓
Military ✓ ✓ 15% 4% ✓ ✓
Military Garaging ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 15%
Multiple Drivers ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Multiple Policies 10% 29% ✓ 10% 20% 10% 12% 17% 13%
Multiple Vehicles ✓ ✓ 25% 10% 20% 10% 20% 8%
New Address ✓ ✓ ✓ ✓ 5% ✓ ✓ ✓ ✓ ✓
New Customer/New Plan ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
New Graduate ✓ ✓ ✓ ✓ 5% ✓ ✓ ✓ ✓ ✓
New Vehicle 30% ✓ ✓ 15% ✓ 40% 10% 12%
Newly Licensed ✓ ✓ ✓ ✓ 5% ✓ ✓ ✓ ✓ ✓
Newlyweds ✓ ✓ ✓ ✓ 5% ✓ ✓ ✓ ✓ ✓
Non-Smoker/Non-Drinker ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Occasional Operator ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Occupation ✓ 10% 15% ✓ ✓ ✓
On-Time Payments 5% ✓ ✓ ✓ ✓ ✓ ✓ 15% ✓
Online Shopper ✓ ✓ ✓ ✓ ✓ ✓ 7% ✓ ✓ ✓
Paperless Documents 10% ✓ ✓ ✓ 5% $50 ✓ ✓ ✓
Paperless/Auto Billing 5% ✓ ✓ ✓ $30 ✓ $20 3% 3%
Passive Restraint 30% 30% 40% 20% ✓ 40%
Recent Retirees ✓ ✓ ✓ ✓ 4% ✓ ✓ ✓ ✓ ✓
Renter ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Roadside Assistance ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Safe Driver 45% ✓ 15% ✓ 35% 31% 15% 23% 12%
Seat Belt Use ✓ ✓ ✓ 15% ✓ ✓ ✓ ✓ ✓
Senior Driver 10% ✓ ✓ ✓ ✓ ✓ ✓ ✓
Stable Residence ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Students & Alumni ✓ ✓ ✓ 10% 7% ✓ ✓ ✓
Switching Provider ✓ ✓ 10% ✓ ✓ ✓ ✓
Utility Vehicle 15% ✓ ✓ ✓ ✓ ✓ ✓ ✓
Vehicle Recovery 10% ✓ ✓ 15% 35% 25% ✓ 5%
VIN Etching ✓ ✓ ✓ ✓ 5% ✓ ✓
Volunteer ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Young Driver ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ $75
Some discounts may help you save 20% or more on auto insurance rates, such as a safe driver discount. If you believe you qualify for specific discounts, you can speak to your current insurance provider to see how much your rates will change.
If your current insurance provider doesn’t honor specific discounts, you can always shop online to find insurers that do. Take your time and compare overall rates and the percentage you could save with a discount before making any changes to your current auto insurance policy.
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Car Insurance for the Unemployed: The Bottom Line
If you own a car, you need car insurance, which means car insurance for unemployed people becomes a priority to think about. Unfortunately, you cannot stop paying for your auto insurance policy if you’re unemployed. The good news is that your rates likely won’t increase if you lose your job.
Anyone who realizes they can no longer afford to pay their current auto insurance rates should shop for coverage online to find a company that offers proper coverage at a lower price. You may have to lower your coverage and search for available discounts to find a monthly or annual rate that works for you.
Frequently Asked Questions
Can unemployed workers buy auto insurance?
Yes, unemployed workers can buy auto insurance. Employment status is not a barrier to purchasing auto insurance coverage.
Is it possible to find cheap auto insurance for unemployed workers?
Yes, it is possible to find affordable auto insurance options for unemployed workers. Various factors, such as the individual’s driving history, the type of car being insured, and the insurance provider chosen, can impact the cost of the policy.
How can unemployed workers find cheap auto insurance?
Here are some tips to help unemployed workers find cheap auto insurance:
- Shop around: Obtain quotes from multiple insurance companies to compare prices and coverage options.
- Consider usage-based insurance: Some insurance companies offer policies that base premiums on the actual mileage driven, which can be beneficial for those who are unemployed and do not commute regularly.
- Opt for a higher deductible: Choosing a higher deductible can lower the premium cost. However, it’s important to ensure that the deductible is still affordable in case of an accident or claim.
- Look for discounts: Inquire about any available discounts, such as safe driver discounts or discounts for bundling multiple policies.
Can unemployed workers qualify for any special auto insurance programs?
Depending on the region and the individual’s circumstances, there may be certain special auto insurance programs available for unemployed workers. It’s advisable to check with local insurance providers or government agencies to see if there are any specific programs or initiatives that cater to the needs of unemployed individuals.
Does being unemployed affect the coverage or benefits of an auto insurance policy?
Generally, being unemployed does not directly affect the coverage or benefits of an auto insurance policy. The coverage provided by the policy remains the same, regardless of employment status. However, it’s important to inform the insurance provider about any changes in the circumstances that may impact the policy, such as a change in usage or location of the vehicle.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.