Gianetta Palmer is a writer for CarInsurance101.com, copywriter, and essayist. Her work has appeared in EverydayHealth.com, Healthline, and The Dyrt Magazine. She is the author of Scrunchie-Fried and writes a lot about car insurance in her spare time.

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Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in automa...

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Reviewed by Melanie Musson
Published Insurance Expert

UPDATED: Feb 5, 2021

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Just What's Essential

  • Unemployed drivers arguably have higher car insurance rates.
  • Qualifying for car insurance discounts can slash prices down to $47 per month.
  • The most effective ways to lower car insurance quotes are a clean driving record and an excellent credit score.

Car insurance for unemployed drivers can be just as affordable as employed drivers. However, high-risk car insurance can make it less cost-efficient.

Unemployed car insurance rates don’t increase because you’re unemployed, but many car insurance reviews will argue that your occupation has an impact on your car insurance policy.

Read through our guide to learn how you can secure cheap auto insurance for unemployed drivers.

If you want to compare car insurance quotes for unemployed drivers, enter your ZIP code in the FREE online comparison tool above.

What are the best car insurance companies for unemployed drivers?

If you want to find reliable car insurance rates for unemployed drivers, start with the United States’s best companies.

Not sure who the best companies are, take a look at this list to see the companies with the highest market share in car insurance:

  • Allstate
  • American Family
  • Farmers
  • GEICO
  • Liberty Mutual
  • Nationwide
  • Progressive
  • State Farm
  • Travelers
  • USAA

Although car insurance rates from each company vary, you’re likely to get the best deals in car insurance from these companies.

Continue reading the subsections below to learn about the factors that hold the most impact on your auto insurance policy.

Car Insurance for Unemployed Drivers by Credit History

According to Experian, auto insurance providers correlate a credit score to risk. Therefore, a customer with a good credit score will receive cheaper rates because they’re less risky to insure.

However, a customer with poor or fair credit will pay more for car insurance because they present more risk for the company.

What does risk mean in this situation? Risk implies the chance the policyholder will file a claim.

So how does risk translate to car insurance rates for unemployed drivers? Let’s examine the average cost of auto insurance by credit history.

Average Monthly Car Insurance Rates Based on Credit History by Company
CompaniesMonthly Car Insurance Rates Based on Good Credit ScoresMonthly Car Insurance Rates Based on Fair Credit ScoresMonthly Car Insurance Rates Based on Poor Credit Scores
USAA$152$185$308
State Farm$181$238$413
GEICO$203$249$355
American Family$224$264$372
Nationwide$244$271$340
Progressive$302$330$395
Farmers$306$325$405
Allstate$322$382$541
Travelers$338$362$430
Liberty Mutual$366$467$734
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Look at how much a good credit history impacts car insurance for unemployed drivers. You can save as low as $150 per month just for a good credit score.

Car Insurance for Unemployed Drivers by Driving Record

What about your driving record? How you conduct yourself on the road can determine how much you’ll pay for auto insurance. Accidents, DUIs, and speeding tickets can affect your car insurance rates.

Let’s look at the average cost of car insurance companies based on driving records.

Average Monthly Car Insurance Rates Based on Driving Record by Company
CompaniesMonthly Car Insurance Rates Based on a Clean Driving RecordMonthly Car Insurance Rates With One Speeding TicketMonthly Car Insurance Rates With One AccidentMonthly Car Insurance Rates With One DUI
USAA$161$183$210$292
GEICO$179$220$266$406
American Family$224$252$310$361
Nationwide$229$259$283$379
State Farm$235$266$283$303
Progressive$283$334$398$331
Travelers$287$355$357$478
Farmers$288$340$377$393
Allstate$318$374$416$522
Liberty Mutual$398$475$517$634
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Of all the violations that can appear on your record, speeding tickets impact your car insurance rates the least. The most damaging violations are DUIs and accidents.

Driving violations and accidents can stay on record for up to three years in your state, but accidents and DUIs remain on your insurance record for eight years.

That’s right — car insurance companies keep a record of your insurance history through the Comprehensive Loss Underwriting Exchange (C.L.U.E.).

C.L.U.E. is a database that shares your insurance record to different companies so insurers can gauge the risk of claims when they pull up your record.

Car Insurance for Unemployed Drivers by Age and Gender

Affordable car insurance for unemployed drivers will be hard to come by if you’re a teen. Younger drivers are likely to encounter more expensive auto insurance rates.

It’s an even more significant challenge for the teen if they’re unemployed. Although female teens are less risky than male teen drivers, they present the same risk to car insurance companies.

Drivers, unemployed or employed, won’t see a drop in their car insurance until 25 years old. Let’s review the average rates by age, gender, and marital status.

Average Monthly Car Insurance Rates Based on Age, Gender, and Marital Status by Company
CompaniesMonthly Car Insurance Rates of a Single 17-Year-Old FemaleMonthly Car Insurance Rates of a Single 17-Year-Old MaleMonthly Car Insurance Rates of a Single 25-Year-Old FemaleMonthly Car Insurance Rates of a Single 25-Year-Old MaleMonthly Car Insurance Rates of a Married 35-Year-Old FemaleMonthly Car Insurance Rates of a Married 35-Year-Old MaleMonthly Car Insurance Rates of a Married 60-Year-Old FemaleMonthly Car Insurance Rates of a Married 60-Year-Old Male
USAA$401$449$166$177$129$128$121$121
State Farm$496$610$195$213$173$173$156$156
Travelers$776$1,071$194$208$182$183$171$173
American Family$500$678$191$225$184$185$166$168
Progressive$724$802$225$230$191$181$166$171
GEICO$471$523$198$189$192$193$187$190
Nationwide$480$598$224$241$197$199$178$185
Farmers$710$762$246$253$213$213$195$204
Allstate$774$887$285$298$263$260$243$249
Liberty Mutual$968$1,143$330$375$317$321$287$307
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Female car insurance rates are much cheaper than male drivers, and senior drivers pay the least for car insurance rates whether they’re employed or not.

Some companies charge female drivers more when they turn 25. However, the auto insurance rate increases depend on location.

Throughout this section, you probably zoned in on USAA. However, USAA is only available to veterans and their immediate families.

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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Four Ways You Can Save Money on Car Insurance while Unemployed

Read on to learn more about how you can find cheap car insurance for the unemployed.

Car Insurance Discounts for Unemployed Drivers

Before you buy car insurance for unemployed drivers, ask the car insurance provider about discounts. You can save hundreds of dollars per year with the right discounts.

The most effective auto insurance discounts for unemployed drivers are:

  • Safe Driver Discount – It’s only available if you have no accidents or traffic violations (You can save up to 40 percent on car insurance).
  • Safety Features Discounts – Auto insurance companies will give a discount of up to 40 percent if your car is equipped with an anti-theft system, anti-lock brakes, and other features in the vehicle.
  • Defensive Driving Course Discount – If you take a driving course in your state and report it to your car insurance provider, you could receive a 5 to 10 percent discount.

Each car insurance company is different, and eligibility requirements may require a little more than what we’ve listed here, so ask your car insurance company directly about discounts.

Buy the Minimum Car Insurance Requirements

Instead of canceling your auto insurance policy, why not get rid of some of the extra coverages. Liability-only car insurance can be as low as $47 per month.

If you get rid of collision and comprehensive coverage, you can lower your car insurance premiums per month.

Enroll in Usage-Based Car Insurance

Telematics has taken the car insurance industry by storm. Car insurance companies have usage-based auto insurance programs for customers who rarely drive their vehicles but need affordable insurance.

Here’s a list of popular pay-as-you-go car insurance programs from the top companies in the United States.

Estimated Pay-As-You-Go Car Insurance Programs and Their Discounts
Pay As You Go ProgramsCar Insurance Savings
Allstate DrivewiseAverage discount is between 10% and 25%.
Esurance DriveSenseDepends on the state where you live.
GEICO DriveEasyDepends on the state where you live.
Liberty Mutual RightTrackAverage of 5 to 30%
Metromile$611 or a maximum of 50%
Nationwide SmartRideUp to 40%
Progressive Snapshot$130 on average
RootMaximum savings is $900/yr or 70%
State Farm Drive Safe & Save15% savings
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How do these programs work? Telematics, or usage-based car insurance, will base your car insurance rates on your driving habits or how many miles you drive per day.

Get an Older Car

Your auto insurance quotes are also determined by the car’s make and model year. If you’re able to, trade your vehicle in for an older model year.

Car insurance rates are much cheaper for older model vehicles. Take advantage of your options and downgrade to a more affordable car if possible.

What’s the bottom line?

The effect of unemployment on car insurance is minimal. However, some car insurance companies may see you as a risk. If they believe that you may be unable to afford their policies, they may deny you coverage.

Keep shopping around until you find a car insurance company that will accept you as a policyholder.

Start comparing car insurance for unemployed drivers by entering your ZIP code in the FREE online quote tool below.

Frequently Asked Questions: Car Insurance for Unemployed Drivers

Let’s answer a few frequently asked questions that are related to car insurance for unemployed drivers.

This guide will change as new information comes in. You should bookmark this page and come back at a later date to see if anything has changed.

For now, move onto the answers for more information about unemployed car insurance.

#1 – Why does employment status matter to car insurance companies?

Auto insurance providers want to know if you can afford their policies. If it appears you may not be able to afford a policy, they may deny you coverage.

#2 – What car insurance companies are best for unemployed drivers?

The best car insurance companies for unemployed drivers are GEICO, State Farm, and American Family.

#3 – Is car insurance for unemployed drivers more expensive?

That would depend on the company. But you slash high prices with car insurance discounts. Don’t forget to ask the car insurance provider about what discounts you qualify for.