Insurance companies are penalising policy holders who are unemployed, said Dan Hutson, Head of Motor Insurance.
“Young people could pay nearly £900 more on average than over 65s for their motor insurance, and the unemployed could pay £440 more than the employed.
Looing at comparethemarket.com’s latest motor snapshot highlights the differences in costs between demographics, which are due to insurers’ price criteria being based on a range of factors.
A driver’s risk profile is the main factor which determines the cost that they’ll pay, which may result in higher prices for those that can afford it the least. However, this does not change the sometimes-grim financial reality that this process has for people who struggle with the costs of car insurance.
“Our recent research found that the high, and potentially unaffordable, cost of cover can have serious implications for people’s livelihoods, with 27% of young people fearing that they would risk losing their job if they could no longer afford to drive.
“Despite the fact that people claim that they would need a saving of £66 to make the move and switch provider, and, the average saving currently standing at £120, the levels of switching are still concerningly low, and only 42% of the nation are likely to switch motor insurance provider. It is essential that those on higher premiums take the time to shop around for the best deal as they may well find they could reduce the cost of cover.”