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Jobless Face Greater Car Insurance Premiums, Data Shows (24 January 2012)

Date: 24/01/2012

Duncan Lewis, Legal News Solicitors, Jobless Face Greater Car Insurance Premiums, Data Shows

Insurers have received criticism for charging unemployed individuals more for their car insurance. Research involving three brokers revealed that vehicle insurance premiums were, on average, 30 per cent greater for individuals out of work. In some instances, premiums were 63 per cent greater. The Association of British Insurers (ABI) uncovered data that showed that unemployment was considered an “additional risk” by insurance companies.

Chris Palmer, an unemployed architect from Cambridge, found that his car insurance premiums increased by 40 per cent upon renewing his car insurance following his redundancy. Mr. Palmer has told of how the insurance companies believe that the unemployed will travel more in order to attend interviews to acquire work. He notes that, for retired individuals, insurance premium remain the same. Mr. Palmer believes that the increase in premiums for the unemployed is an “outright discrimination” against the already disadvantaged members of society.

Graeme Trudgill, of the British Insurance Brokers' Association, claimed that unemployed individuals were viewed as being less likely to maintain their vehicles and as posing a higher credit risk. He stated that insurers might also have concerns over the use of their vehicles and whether their vehicles would be used more frequently. AA Insurance stated that unemployed individuals were increasingly likely to submit an insurance claim. Their spokesperson, Ian Crowder, claimed that different insurers treated different individuals in different ways yet stated that the majority of insurers would raise their premiums for those who had lost their jobs.

Duncan Lewis’ employment law solicitors can protect the rights of individuals who have been made redundant.