Car & bike insurance after redundancy?

[Alex Z]

For anyone who has been made redundant, and hasn’t found a new job before the old one finishes, what’s your real world experience with car & bike insurance?

Presumably if you notify your insurers that you are unemployed the day after you finish work, they will hit you for an admin fee, plus a higher rate for the remainder of the policy? Then if you get another job a month later you’ll get another admin fee which will wipe out any refund you might be due being lower risk again?

[richhead]

Why would you tell them??

[OverSteery]

richhead said:

Why would you tell them??

because telling them about changes is usually a contractual requirement?

[Alex Z]

richhead said:

Why would you tell them??

Hypothetically, if you expected to be back in work in a month or so, I expect most people wouldn't remember or bother to do so.

I don't recall seeing anyone being asked for proof of their job when it comes to a claim, so it's a very low risk omission, but *if* something happened that resulted in a claim it's not out of the question that it'll come up.

If one of the policies happened to be due for renewal before you find work again, you've got no choice but to answer accurately

[richhead]

Alex Z said:

If one of the policies happened to be due for renewal before you find work again, you've got no choice but to answer accurately

probably right, althought im sure they just use your line of work to judge your risk. But i wouldnt put it past them to wriggle out on anything they find.

[E-bmw]

Personally, I would have thought if you are a welder (FAS) or a welder between jobs, you are still a welder.

Different if you expect it to last for an extended period of time.

[OutInTheShed]

Do they ask for your employment status or your profession/occupation? Both?

Try running some quotes past the meerkats.
Are you unemployed, or temporarily a househusband?

[Foss62]

Alex Z said:

For anyone who has been made redundant, and hasn’t found a new job before the old one finishes, what’s your real world experience with car & bike insurance?

Presumably if you notify your insurers that you are unemployed the day after you finish work, they will hit you for an admin fee, plus a higher rate for the remainder of the policy? Then if you get another job a month later you’ll get another admin fee which will wipe out any refund you might be due being lower risk again?

It’s another of these insurance questions that the ‘experts’ may claim is simple, but is actually nothing of the sort. I was made redundant last September, bought my company car and insured it as if I was ‘retired’. However, I have no intention of drawing from my pension for at least another 18 months, nor will I claim UB - the redundancy payment will cover everything. I have also had approaches from my previous employers about possible one-offs on expenses only - no idea if this would class as working again for a few days?
I would imagine that ‘unemployed’ would be defined by drawing unemployment benefit? If you don’t, then it’s hard to see why you couldn’t put down ‘retired’, your previous profession or any activity you happen to be spending some time on.

[MustangGT]

Foss62 said:

It’s another of these insurance questions that the ‘experts’ may claim is simple, but is actually nothing of the sort. I was made redundant last September, bought my company car and insured it as if I was ‘retired’. However, I have no intention of drawing from my pension for at least another 18 months, nor will I claim UB - the redundancy payment will cover everything. I have also had approaches from my previous employers about possible one-offs on expenses only - no idea if this would class as working again for a few days?
I would imagine that ‘unemployed’ would be defined by drawing unemployment benefit? If you don’t, then it’s hard to see why you couldn’t put down ‘retired’, your previous profession or any activity you happen to be spending some time on.

Unemployed is not defined by drawing unemployment benefit. As you have just demonstrated above, you were not working and have no intention of working, could be unemployed or retired. Not all unemployed people can claim benefit, e.g. voluntarily leaving a job.

[Petrus1983]

OverSteery said:

richhead said:

Why would you tell them??

because telling them about changes is usually a contractual requirement?

Actually it's usually at time of renewal. You are advised to let them know of certain things along the way incase you forget at renewal - such as points.

[Collectingbrass]

If your insurance covers for commuting, or a significant amount of business use, the potential saving switching to SD&P while job hunting may be beneficial. As an extreme example, if you are no longer "carrying for hire or reward" it's definitely worth a call to them.

[TwigtheWonderkid]

Petrus1983 said:

OverSteery said:

richhead said:

Why would you tell them??

because telling them about changes is usually a contractual requirement?

Actually it's usually at time of renewal. You are advised to let them know of certain things along the way incase you forget at renewal - such as points.

Certain things don't have to be disclosed until the next renewal, like points and accidents (in a different vehicle). Some things have to be disclosed immediately, like changes of address and occupation.

[Mr.Chips]

If you were a shelf-stacker who suddenly became a Premier league footballer, I would imagine your insurance company would like to know as traditionally, footballers are a higher risk. If the reverse was true, then I think it would be in your best interests to inform your insurance company, so that your insurance premiums could be reduced as you would probably be a lower risk. As someone else as pointed out, if you are a plumber who becomes unemployed, effectively you are still a plumber until you get a completely different job. On the rare occasions I have been unemployed, I have not informed my insurance provider purely and simply because I knew that it would only be a short period of time before I was employed again. I had no intention of changing my profession, irrespective of whatever crappy jobs the wonderful people at the Jobcentre were keen to push my way. OP if you are going to be unemployed for a long time or there is a good chance that your next job may be completely different than your last job, then inform your insurance provider, if not, then wait it out and save yourself all of those additional admin fees.
Good luck, I hope you find something soon.

[Foss62]

MustangGT said:

Foss62 said:

It’s another of these insurance questions that the ‘experts’ may claim is simple, but is actually nothing of the sort. I was made redundant last September, bought my company car and insured it as if I was ‘retired’. However, I have no intention of drawing from my pension for at least another 18 months, nor will I claim UB - the redundancy payment will cover everything. I have also had approaches from my previous employers about possible one-offs on expenses only - no idea if this would class as working again for a few days?
I would imagine that ‘unemployed’ would be defined by drawing unemployment benefit? If you don’t, then it’s hard to see why you couldn’t put down ‘retired’, your previous profession or any activity you happen to be spending some time on.

Unemployed is not defined by drawing unemployment benefit. As you have just demonstrated above, you were not working and have no intention of working, could be unemployed or retired. Not all unemployed people can claim benefit, e.g. voluntarily leaving a job.

My comments on that are from a viewpoint that ‘retired’ would get you cheaper insurance quotes than ‘unemployed’ (I’m sure I’ve read that somewhere?). I was lucky enough to be made redundant in my 60s, but would have thought that anyone over about 50 could reasonably claim to be retired for insurance purposes - even if they ‘changed their mind’ when a new job was offered.
Presumably, claiming unemployment benefit would mean that strategy couldn’t be used?

[Alex Z]

MustangGT said:

Foss62 said:

It’s another of these insurance questions that the ‘experts’ may claim is simple, but is actually nothing of the sort. I was made redundant last September, bought my company car and insured it as if I was ‘retired’. However, I have no intention of drawing from my pension for at least another 18 months, nor will I claim UB - the redundancy payment will cover everything. I have also had approaches from my previous employers about possible one-offs on expenses only - no idea if this would class as working again for a few days?
I would imagine that ‘unemployed’ would be defined by drawing unemployment benefit? If you don’t, then it’s hard to see why you couldn’t put down ‘retired’, your previous profession or any activity you happen to be spending some time on.

Unemployed is not defined by drawing unemployment benefit. As you have just demonstrated above, you were not working and have no intention of working, could be unemployed or retired. Not all unemployed people can claim benefit, e.g. voluntarily leaving a job.

The meerkats have an option for Houseperson which is basically “don’t have a job & not looking for one” which gives quotes about the same as with my occupation.