Some interesting research has been carried out by the price comparison website MoneySuperMarket.com into the impact incorrectly stating what your employment status is when applying for car insurance on the price you will be charged for the cover. In some cases, it can make as much as a three figure difference in the premium.
As you are no doubt aware, there are many factors that dictate how much you will be charged for your motor insurance such as the make and model of car, where you live, your driving experience, the number of miles you drive a year, what you will use the car for and the level of cover. Another factor is what your employment status is.
For instance, the average quote for car insurance for a student in January 2018 was £1,327.87 per annum. Yet, if that student mistakenly put down on their application form for car insurance that he or she was unemployed (say because they were not working whilst studying) then the increase in premium was an average of 51%
meaning that he or she was paying an extra £677.21 per annum. We are sure that you will agree it is a huge difference.
If someone was a mature student living at home the average premium was £1,308.72 per annum. Yet, if he or she stated that they were unemployed then the premium would increase by an average of 39% – this equates to an extra £510.40 per annum with this, again, being s significant increase.
The average quote for someone who is retired was £265.66. However, if he or she had stated that they were unemployed they would have been quoted an extra 37% meaning that they would pay an extra £98.29 per annum.
A housewife would pay an average of £563.04 per annum yet if they had stated that they were unemployed they would have paid an extra 26% with this equating to an extra £146.39 per annum.
Needless to say, it is important that when completing an application form for car insurance that you provide accurate information. However, it is also important that you do not rush through filling in an application form in case you make a genuine mistake. If you did then, as you can see from the above examples, it may cost you a lot of money. This money could be put to good use by you for so many other purposes.