Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Reviewed by Jeffrey Johnson
Insurance Lawyer

UPDATED: Jul 14, 2021

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In a nutshell...

  • If you are unemployed, you still need vehicle insurance
  • It can be difficult to know what to do if you cannot afford insurance
  • But you need to avoid the high cost of loss if you had an accident
  • Shop and compare to find the best price on car insurance

Are you unemployed or do you know someone who is? Being unemployed should not get in the way of you obtaining car insurance. Protecting yourself and your family should be tops in the list of priorities for your family financial concerns.

Loss through a car accident involves not only damage to your personal vehicle but also possible long-term financial hardship due to not having adequate transportation to work or other important locations.

You cannot afford to risk losing your vehicle and not being able to replace it or extremely high costs for automotive repair.

Find the best price for the auto insurance you need by using our free rate comparison tool above.

Keep Your Car Protected

When you are unemployed, it’s also important to not restrict yourself any more than you have to be. You still need a car that you can go around to job interviews in so that you can change your unemployment status to employed.

Being without a car will only make things worse.

So what should you do while you are stretching through until you can locate suitable employment?

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Do you have to have a job to get insurance?

Many people mistakenly think that, if they tell an insurance agent they are unemployed that they will not be able to obtain insurance. But actually, there is no law or rule among insurance companies that says you have to have a job to get insurance.

There are a couple main reasons it’s hard to get insurance when you are unemployed:

  • Many people feel that they cannot afford it
  • You may not be able to offer proof of income

But, again, there is no requirement that people show proof of revenue when they take out insurance.

The only thing you need to begin an insurance policy is to provide banking information or credit card information if you plan to make an automatic withdrawal for your monthly premiums.

Borrow Money from a Friend

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If the problem is that you cannot afford the initial premium, you may be able to borrow money from a friend or family member or take out a small temporary loan while you are paying for your initial premium.

Remember that even though you may not have a steady income right now, you must still do everything you can to protect your investment. Your car is one of the most important investments you have while you are trying to get your career going again.

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Tips for Finding Car Insurance

If you are unemployed and looking for car insurance, consider the following tips when you shop for a policy.

  • Think about your risk factors  Whether you are unemployed or not, you should consider your risk factors before deciding what type of insurance coverage you should aim for.
  • Protect your vehicle  Your car allows you the freedom to come and go where you need to to find and secure employment, as well as run essential errands for your life. It is important to protect your vehicle from accident damage as well as to make sure you’re within the law on state mandatory coverage requirements.
  • Consider comprehensive if you can afford it  Comprehensive insurance is important coverage that covers you in situations such as auto theft or vandalism, as well as “acts of nature,” falling objects, or other events.
  • Ask about good driving or other discounts  You may qualify for insurance discounts such as safe driving or student discounts (if you are a student).

Many people who are among the unemployed qualify for a good student discount. So they should take advantage of the opportunity to shave some of the costs off of their auto insurance premiums.

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Fall Back on Your Savings

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Another important tip we should offer is that you should fall back on your savings account (if you have one) during the time that you are unemployed. Everyone should save back some money for a rainy day.

If you never had a way to do that, now is the time to sell off a few things or borrow a small amount of money from a friend or family member that can afford to help you.

Being unemployed is a hard time in a person’s life. But with some thought and organization, you can figure out how to tap into some extra cash to afford the essentials of life.

Cut Unnecessary Expenses

Many of us have been there at one time: the survival mode. This is a state in which survival is the key, and you cannot afford any luxuries.

Even successful business people at some point have experienced this state as they are trying to expand or revamp their business and they hit a rough spot for a few months.

So just reassess the most important things and cut any expenses that are not essential to day-to-day living.

You need your cell phone and internet service due to the potential for job opportunities and connections with others.

But do you need 250 channels on satellite or that extra Netflix account for ten devices? Think about what you can cut to survive and remember that insurance is not a luxury. It is a very important and essential part of survival.

Apply for Unemployment Benefits

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If you lost your job due to no fault of your own, you might be eligible to collect unemployment benefits. Look to your local DWS (Department of Work Force Services) to see if you qualify for these temporary benefits.

They will base the amount you receive on a percentage of your regular employment income, and you do not have to pay it back.

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Get a Part-Time Job

Another important thing to remember while you are among the unemployed is that you often have to learn to think outside the box.

Instead of waiting just for that perfect full-time job, you may have to do some smaller jobs as you are stretching through the crisis of being unemployed.

Doing odd jobs such as mowing, sitting with the elderly, or running errands for people can make you anywhere from $20-$100 per day in some areas.

Try every way you can think of to bring more money into your life between full-time jobs and remember that some income is better than none.

Become an Entrepreneur

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Many people have become entrepreneurs and business owners because they lost their job with an employer. One way to deal with your unemployment status is to become independent and create your future.

Think about what you do well, better than anyone else and figure out a way to market yourself in that niche area or profession.

Who knows? You may even find that you like being your boss and that you prefer to work for yourself in the long-run.

If not, at least you will have figured out how to make a living on your own during the time that you are between jobs, and it will renew your confidence in yourself and your abilities.

Regardless of where you go with your career after that, you will be able to afford one of the essentials of life by purchasing your car insurance.

Insurance is an Essential Need

Insurance is too important to let it go to chance.

Remember that you will be assessed fees and possible court costs for failure to provide proof of insurance, especially if you are involved in an auto accident.

Don’t take the risk. Instead, find a way to bring temporary money into your life. Then make sure and work car insurance into your budget.

When you are trying to find car insurance, look at the factors that you can use in your favor such as a or another status, and discuss your situation with an insurance representative when you get a free quote.

Then look for ways to save on your premiums. Remember your unemployment status is just temporary. But a car accident without insurance can last a lifetime.

Compare car insurance rates by entering your zip code below.