Cheap Auto Insurance When Unemployed in 2024 (Save Big With These 9 Companies!)
You can find the lowest rates for cheap auto insurance when unemployed at Erie Insurance, as well as at Geico and State Farm. At Erie Insurance, minimum coverage for unemployed drivers is only an average of $26/mo. Unemployed drivers may also be able to qualify for low mileage discounts to further reduce rates.
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
UPDATED: Mar 18, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Mar 18, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Company Facts
Avg. Monthly Rate for Unemployed
A.M. Best Rating
Complaint Level
Pros & Cons
Company Facts
Avg. Monthly Rate for Unemployed
A.M. Best Rating
Complaint Level
Pros & Cons
Company Facts
Avg. Monthly Rate for Unemployed
A.M. Best Rating
Complaint Level
Pros & Cons
The lowest rates for for cheap auto insurance when unemployed are at Erie Insurance, followed by Geico and State Farm.
Some of the other best auto insurance companies for unemployed drivers are Progressive, Nationwide, and more.
However, which company is best for you depends on what rates and perks you are looking for.
Take a look below to see which company for unemployed drivers fits your needs best.
Our Top 9 Company Picks: Cheap Auto Insurance When Unemployed
Company Rank Monthly Rates Usage-Based Discount Best For Jump to Pros/Cons
#1 $26 30% Cheap Rates Erie
#2 $34 30% Online Convenience Geico
#3 $42 30% Local Agents State Farm
#4 $43 30% Accident Forgiveness Travelers
#5 $53 30% Budgeting Tools Progressive
#6 $54 20% Bundling Policies American Family
#7 $57 40% Roadside Assistance Nationwide
#8 $68 30% 24/7 Support Farmers
#9 $71 40% Safe-Driving Discounts Allstate
Read on to find cheaper car insurance for unemployed drivers, from the cheapest companies to discount savings. You can also compare quotes from the top insurers by entering your ZIP code above.
- Erie has the cheapest auto insurance for unemployed drivers
- State Farm and Geico are also economical choices when unemployed
- Unemployed drivers may be able to get low-mileage discounts
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#1 – Erie: Top Pick Overall
Pros
- Great customer service ratings: Erie has great customer satisfaction ratings, including for claims handling.
- Affordable rates: Erie has the best cheap car insurance for unemployed drivers. Learn more about Erie’s affordable rates in our Erie auto insurance review.
- Policy perks: Erie offers perks in its standard coverages that aren’t typical at most providers, such as pet injury coverage of up to $500 per pet ($1,000 total) if your pet is injured in an accident.
Cons
- Availability is limited: Erie is not available in every state, so some unemployed drivers may not be able to get coverage at Erie.
- Stricter eligibility process: Erie’s low rates are partly due to its stricter underwriting process, which means it may be harder for high-risk drivers to qualify for Erie coverage.
#2 – Geico: Best for Online Convenience
Pros
- User-friendly: Geico’s apps are well-rated, and its website is easy to navigate, making it simple for drivers to manage their policies. For example, unemployed drivers can easily reduce coverage limits to lower rates.
- Multiple coverage options: Geico offers multiple types of coverage and limits that unemployed drivers can customize to meet their budget. Learn more about coverage options in our Geico auto insurance review.
- Multiple discounts: There are plenty of Geico auto insurance discounts for unemployed drivers to choose from.
Cons
- Mixed claims handling reviews: Geico has some negative claims handling customer service reviews, although this is typical of any large auto insurance company.
- Location rates vary: Geico is generally one of the cheapest auto insurance companies available, but in some regions is more expensive.
#3 – State Farm: Best for Local Agents
Pros
- Local agent network: State Farm is well known for its local agents, which is helpful for unemployed drivers who want in-person assistance with lowering rates.
- Multiple coverages: State Farm offers a great variety of auto insurance coverages, so drivers can pick and choose how much coverage they want. Learn more about State Farm’s coverage options in our State Farm auto insurance review.
- Multiple discounts: There is a good selection of State Farm auto insurance discounts that drivers can use to save on unemployed car insurance.
- Cheap for young drivers: Generally, State Farm offers affordable rates for younger drivers, particularly for college students.
Cons
- Customer service varies: State Farm has a few negative customer service reviews, so drivers may have a negative experience working with a specific agent.
- Fewer high-risk driver options: State Farm is not the best company for high-risk unemployed drivers, as it may deny coverage or charge high rates.
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#4 – Travelers: Best for Accident Forgiveness
Pros
- Multiple discounts: Travelers offers a good selection of discounts to drivers, including a usage-based discount through IntelliDrive (learn more in our Travelers IntelliDrive app review).
- Strong financial stability: Travelers has great ratings for financial stability, meaning it is well-established and can pay out claims without financial difficulty.
- Multiple coverages: Travelers has a good selection of auto insurance coverages, which you can learn more about in our Travelers auto insurance review.
Cons
- Local agents may be limited: Travelers doesn’t have as many local agents as companies like State Farm, so unemployed drivers may not be able to find in-person help.
- Region rates vary: Travelers’ rates vary by region like all auto insurance companies, so it may not be the most cost-effective choice in some states.
#5 – Progressive: Best for Budgeting Tools
Pros
- Name Your Price tool: Unemployed drivers can check the amount of coverage they can purchase with their budget from Progressive using the Name Your Price tool.
- Usage-based program: Drivers can save on unemployment car insurance with Progressive’s Snapshot program (learn more in our Progressive Snapshot review).
- User-friendly mobile use: Progressive’s apps and website are easy to use, making policy management for unemployed drivers easy.
Cons
- Customer service reviews mixed: Like all companies, Progressive has some negative reviews regarding claims handling customer service. Learn more in our Progressive auto insurance review.
- Accident rate increases: Progressive is a more expensive company for drivers with accidents, so if an unemployed driver gets into an accident, they will see much higher rates.
#6 – American Family: Best for Bundling Policies
Pros
- Bundling discounts: American Family bundling discounts can help drivers save. Read about other available discounts in our American Family auto insurance review.
- Great service ratings: American Family has good customer service ratings.
- Multiple coverages: American Family has a good selection of basic auto insurance coverages for drivers to choose from.
Cons
- Limited availability: American Family does not sell auto insurance in every state, so it’s availability is limited to unemployed drivers.
- Add-on coverages limited: While American Family has a good selection of basic coverages, it is missing a few add-on coverages like rideshare insurance or new car replacement insurance.
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#7 – Nationwide: Best for Roadside Assistance
Pros
- Multiple coverages: Nationwide’s coverage selection is great, with the option to add on extras like 24/7 roadside assistance.
- Strong financial stability: Nationwide has strong financial ratings, which you can learn more about in our Nationwide auto insurance review.
- Multiple discounts: There are plenty of Nationwide auto insurance discounts that unemployed drivers can take advantage of, such as usage-based discounts.
Cons
- Limited availability: Nationwide is unavailable in a few states, so it may not be an option for some unemployed drivers, depending on location.
- Mixed customer reviews: Nationwide has some mixed customer service reviews, like most larger companies.
#8 – Farmers: Best for 24/7 Support
Pros
- 24/7 assistance: Farmers offers 24/7 assistance with claims and policies so that unemployed drivers can get help at any time of the day.
- Good customer service reviews: Farmers has good customer service reviews regarding claims satisfaction (read more in our Farmers auto insurance review).
- Multiple discounts: There is a good selection of discounts to choose from at Farmers, including a usage-based discount through the Farmers’ Signal program (read more: Farmers Signal review).
Cons
- Rates vary by location: Farmers may not be the best choice for cheap car insurance for unemployed drivers in some states.
- No gap insurance: Farmers has a great selection of coverages and add-on coverages, but it is missing gap insurance.
#9 – Allstate: Best for Safe-Driving Discounts
Pros
- Usage-based discount: Allstate offers Drivewise, a usage-based program that can help unemployed drivers save on their auto insurance coverage (read more in our Allstate Drivewise review).
- Local agent availability: Allstate has local agents in some areas, so some unemployed drivers may be able to get in-person assistance with decreasing rates.
- Multiple coverages: Allstate’s coverage options are diverse, allowing drivers to carry as much or as little coverage as they wish.
Cons
- Higher rates for some demographics: Allstate’s rates are more expensive for high-risk drivers, so it may not be the most economical choice.
- Mixed customer reviews: Allstate has mixed customer service reviews, which you can learn more about in our Allstate auto insurance review.
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Unemployment and Auto Insurance Rates
Do you need a job to get auto insurance? No, your employment status can’t affect your ability to buy insurance. If an insurance company were to deny applications because their applicants were unemployed, the state regulating officials would penalize them.
Using someone's employment status to qualify or rate a driver is discriminatory in nature. This is why there isn't unemployed auto insurance specifically for someone who isn't employed.Daniel Walker Licensed Auto Insurance Agent
Is there auto insurance for the unemployed in California? Not exactly, but California is one of the few states to have a low-income auto insurance plan.
How Auto Insurance Rates are Personalized
Auto insurance rates are personalized. This is why you, your friends, and your family members all pay very different premiums. Auto insurance carriers invest time and money into rate making. This helps the company determine how much they must charge to stay profitable.
After rates are made, the company will use rating factors to come up with a custom price for the coverage that you select when getting a quote from their website.
Each factor that’s used to personalize rates affects the policyholder’s probability of filing a claim based on what the statistics say. Some factors are beyond your control and others aren’t. Here are the most common rating factors used:
- Age, gender, and marital status
- Occupation
- Driving experience and driving record
- Claim history for at-fault and non-fault claims
- Mileage and driving habits
- Vehicle usage (pleasure, commute, or business)
- Garaging zip code and claims reported in the area
- Credit-based insurance score (only used in some states)
- Vehicle size, claims data, and safety features
According to the National Association of Insurance Commissioners (NAIC), your credit-based insurance score isn’t the same as your credit score. A credit-based insurance score is simply a calculation of risk of outstanding debt.
Unemployment as a Rating Factor
Your employment status isn’t a rating factor, but if you go from employed to unemployed, there are a few rating factors that can change. However, affordable car insurance for the unemployed isn’t out of reach. Shopping for coverage at one of the companies below will ensure you get the cheapest rate possible.
Since your income will be limited, it’s nice to know that your rates can go down when some of these factors change. That’s because you may qualify for some new mileage discounts and cheap usage-based auto insurance.
Usage-Based Discounts for Unemployed Drivers
When your annual mileage goes down your premiums can go down. Insurance companies have different mileage rating bands. The higher your annual mileage, the higher your premiums will be.
When you commute five days per week, you will accumulate miles over the weeks and months.
After you cut out that commute, your annual mileage will go down. If it goes down enough, you can qualify for a low-mileage discount. There are also other discounts that unemployed drivers can take advantage of to maximize savings.
Unemployed Driver Auto Insurance Discounts
Discount Type Description
Usage-Based Discount This discount is applied based on monitored driving behavior through telematics devices or mobile apps, allowing insurers to assess driving habits and offer reduced rates for safe driving.
Low Mileage Discount Drivers who cover a lower-than-average annual mileage may qualify for this discount, reflecting reduced driving habits and potentially leading to lower insurance premiums.
Pay-Per-Mile Insurance With pay-per-mile insurance, premiums are calculated based on the number of miles driven, providing unemployed drivers with the opportunity for cost savings when their driving is limited.
Safe Driver Discount This discount is awarded to drivers with a clean driving record, showcasing safe driving habits and resulting in lower premiums and more favorable insurance rates.
Multi-Car Discount Families or households with more than one vehicle can benefit from a multi-car discount, which offers cost savings for insuring multiple vehicles on the same policy.
Bundle Discounts Insurance providers often offer discounts for bundling auto insurance with other policies such as home or renters insurance, providing comprehensive coverage and cost savings.
Defensive Driving Course Completing an approved defensive driving course can lead to discounts, as it demonstrates a commitment to safe driving habits and improved skills behind the wheel.
Good Student Discount Young drivers who maintain good grades may qualify for this discount, recognizing responsible behavior on and off the road and offering cost savings on auto insurance.
Student Away at School Parents with unemployed students away at school may be eligible for discounts, reflecting reduced usage of the insured vehicle while the student is not actively driving.
Loyalty Discounts Long-term customers who remain with the same insurance provider may enjoy loyalty discounts, providing incentives for customer retention and offering cost savings on insurance premiums.
These discounts vary by provider, but often offer big savings.
Unemployment and Change in Vehicle Usage
When you’re unemployed, your vehicle usage could change. Your agent will ask you how you drive your vehicle regularly. It might sound like a silly question depending on how it’s phrased, but what they’re inquiring about is whether or not you commute to and from work or school.
There are three usage categories. These include pleasure, commute, and business use. If you go from driving as a commuter or for business, you’ll see your rates drop when you become a pleasure user.
Unemployed Credit Score’s Effect on Auto Insurance Rates
If your credit score goes down, your rates may go up. Auto insurance and your credit score are important. A majority of states allow insurance companies to look at your credit when calculating rates. The company uses insurance scores that are calculated by an agency like FICO or LexisNexis to grade a person’s credit.
Learn more: How Credit Scores Affect Auto Insurance
While delinquencies and credit mix will affect your score, there are factors that can’t be reported. One of these factors is employment status. The company can raise your rates at renewal if your credit score has gone down.
Covering your regular bills can be difficult when you’re living on a limited income or no income at all. If you’re looking to lower your bills, it’s important to shop around for the best rates. Make sure to update your rating information, solicit quotes, and then you can lower your monthly budget to cover your car.
Ready to find cheaper auto insurance if you are unemployed? Enter your ZIP code below to unemployed car insurance rates from multiple companies. Find the best car insurance company for the unemployed for you.
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Frequently Asked Questions
Can I still get auto insurance if I am currently unemployed?
Yes, you can still get auto insurance even if you are currently unemployed. Employment status is not typically a determining factor for eligibility. However, insurance providers may consider other factors such as your driving record, credit history, and other personal details when determining your insurance rates.
Does being unemployed affect car insurance rates?
Being unemployed itself does not directly result in higher auto insurance rates. Insurance companies primarily consider factors such as your driving record, the type of vehicle you drive, your location, and other risk-related factors when calculating insurance rates. However, if your financial situation changes due to unemployment and affects your ability to maintain a good credit score, it may indirectly impact your rates.
Can I adjust my coverage to reduce my auto insurance costs while I am unemployed?
Yes, you can adjust your auto insurance coverage to reduce costs while unemployed. You may consider options such as raising deductibles, reducing coverage limits, or removing optional coverages that are not essential. However, it’s important to ensure that you still have sufficient coverage to meet legal requirements and protect yourself financially in case of an accident.
Are there any special discounts or programs available for unemployed individuals?
Some insurance providers may offer discounts or programs specifically designed for individuals experiencing unemployment or financial hardship. These discounts or programs may vary depending on the insurance company and the state. It is recommended to inquire with insurance providers about any available discounts or assistance programs.
Should I notify my insurance company if I become unemployed?
It is not necessary to notify your insurance company solely because of unemployment. However, it is important to inform them of any significant changes in your circumstances that may impact your ability to pay premiums, such as a substantial decrease in income. They may be able to offer guidance or provide options to help you manage your payments during this time.
Can I suspend my auto insurance coverage if I am not using my vehicle while unemployed?
If you do not plan to use your vehicle at all while unemployed, you may have the option to suspend your auto insurance coverage temporarily. However, it is important to check with your insurance provider as some states have mandatory insurance requirements even if the vehicle is not being used. Additionally, if your vehicle is financed or leased, the lender may require continuous coverage.
Who has the cheapest car insurance?
Erie Insurance has the cheapest car insurance for the unemployed.
Who is cheaper, Geico or Progressive?
Geico is usually cheaper for unemployed drivers than Progressive.
What is the lowest you can pay for car insurance?
It depends on your chosen company, but Erie Insurance’s lowest average rate is only $26 per month.
Is car insurance cheaper if used for work?
It depends on how often you drive a car for work. If you are unemployed and qualify for pleasure use of a vehicle because your mileage went down, it will be cheaper to insure your car than if you use it to drive to work.
Do you need a job to get car insurance?
No, you do not need a job to purchase car insurance.
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.