Auto Insurance for Unemployed People

Auto insurance for unemployed drivers can be expensive, especially if you are on a limited budget. You can get auto insurance with no job, but the average cost of auto insurance for unemployed drivers is $168/month. The best ways to get cheap auto insurance for unemployed drivers are to shop around, look for discounts, and raise your deductible.

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Sara Routhier, Director of Outreach and Managing Editor of Features, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overw...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Mar 30, 2021

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Auto Insurance for Unemployed Drivers Overview
Unemployment StatisticsDetailsSource
National Unemployment Rate in 202010.2%U.S. Bureau of Labor Statistics
Average Unemployment in U.S. $1,232/month
$14,783/year
U.S. Department of Labor
Average Annual Cost of Insurance $1,984.00Geico
Percentage of Income Spent on Auto Insurance (average) 13.4%N/A
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Wondering if it’s possible to get cheap auto insurance for unemployed drivers? The worst thing you can do is forego auto insurance coverages altogether, as driving without insurance is illegal and will result in high rates, a revoked license, fines, and other penalties if you are caught.

Regardless of your employment status, insurance is required by law. It’s not hard to find the best auto insurance for unemployed adults with the coverage you need. To find savings on unemployed driver auto insurance rates right away, enter your ZIP code into our free tool above to get unemployed driver auto insurance quotes.

Auto Insurance for Unemployed Drivers: How Employment Status Can Change Rates

“What if I’m temporarily unemployed and I file for auto insurance?” “Can you get auto insurance with no job?” Most drivers are worried that if they are unemployed and apply for coverage, they will be denied or have higher rates. The good news is that it’s illegal for insurers to deny someone coverage just because they are unemployed.

However, you may be denied insurance or have higher rates if you have a poor credit score due to unemployment. According to the National Association of Insurance Commissioners (NAIC), it is illegal in some states for insurance companies to consider your credit score as a factor, so even if you have a poor credit score, it may not impact your rates.

You may earn a discount if you are unemployed and driving less. Therefore, applying for auto insurance while unemployed doesn’t automatically mean you will receive higher rates.

Should I tell my insurer if I’m no longer unemployed?

You are legally required to tell your insurer of your new occupation, as your job can affect your rates. Insurers have an unofficial auto insurance occupation list that they use to determine risk. Riskier jobs include occupations that are high-stress or require long hours on the road, as they can affect a driver’s awareness and reaction time.

If on your auto insurance your occupation is unemployed, you need to tell your insurer at your next renewal period if you got a job. Not doing so is considered a form of fraud, which could result in your claim being denied or your insurer dropping you.

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Auto Insurance Rates for Unemployed Drivers

Does auto insurance increase if unemployed? If you have insurance with no job, your rates will usually only rise if your credit score is bad. To see how much average rates are for unemployed drivers, take a look at the table below.

Auto Insurance Rates for Unemployed Drivers
Payment FrequencyAverage Rate
Monthly $165.33
Six-Month$992.00
Annual $1,984.00
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Unemployed rates are some of the more expensive when comparing auto insurance rates by occupation, which is why it’s important to take advantage of discounts and shop around for the cheapest coverage in your area.

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Do auto insurers offer unemployment discounts?

No, there is not an auto insurance occupation discount for unemployment. So do you get any deduction from auto insurance for being unemployed? If you are no longer driving for work and your mileage has gone down significantly, you may qualify for a low mileage discount.

Below is a list of companies who offer low mileage discounts, as well as the average percentage saved (if known).

Low Mileage Auto Insurance Discounts by Company
CompaniesLow-Mileage Discount OfferedPercentage Rate Discount Offered
21st CenturyNo-
AAAYesNot Available
AllstateYesNot Available
American FamilyYesNot Available
AmeripriseNo-
AmicaYes10%
Country FinancialYesNot Available
EsuranceYes15%
FarmersYesNot Available
GeicoYesNot Available
Liberty MutualYesNot Available
MetLifeYesNot Available
NationwideYesNot Available
ProgressiveYesNot Available
Safe AutoNo-
SafecoYes20%
State FarmYes30%
The GeneralYesNot Available
The HanoverYesNot Available
The HartfordYesNot Available
TravelersYesNot Available
USAAYesNot Available
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What happens if I can’t afford auto insurance while unemployed?

How do I get insurance with no money? If you are struggling to find affordable auto insurance while unemployed, there are a few ways to find savings:

  • Shop for online insurance quotes. Getting multiple auto insurance quotes will help you find the cheapest rates in your area.
  • Take advantage of discounts to reduce rates.
  • Raise your deductible. We recommend using this as a last resort, as you will have a higher bill if you get into an accident.

Make sure you talk to your insurer about how to save, as most will want to keep you as a customer. They can help you find discounts, adjust coverage levels, and find other ways to lower your rates. You may be able to buy unemployed driver auto insurance from a low-cost state-run option depending on where you live.  This may be the cheapest unemployed driver auto insurance company option for you.

Is it better to claim unemployed or disabled when looking for cheap auto insurance rates?

If you are looking for home and auto insurance for low income or no job drivers, you may be wondering if you should claim unemployed or disabled. If you are disabled, let your insurer know. It won’t have an effect on your rates, as charging higher rates for a disability is illegal discrimination.

However, if you have any modified parts to your car because of your disability, let your insurer know so you can discuss coverage options to protect modifications in case of an accident. You should also familiarize yourself with a disabled road safety guide, as developing excellent driving skills will help keep rates low.

We hope our guide to auto insurance for unemployed drivers has been helpful. If you are stressed about finding cheap auto insurance, start by getting affordable unemployed driver auto insurance quotes in your area. Enter your ZIP code in our free tool to begin.

References 

  1. https://content.naic.org/article/consumer_insight_creditbased_insurance_scores_arent_same_credit_score_understand_how_credit_and_other_factors.htm

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