Why Is Car Insurance More For Unemployed? 
There are two reasons why unemployed people may pay more for auto insurance : persistency , and claims . Issuing policies to new customers is costly . Agent commissions are heavily front loaded , and the company has to carry marketing and underwriting costs on new policies . Policies that stay on the books longer are more profitable than those that lapse shortly after being issued . People who are unemployed tend to have shorter persistency rates due to a lack of income . Many people become unemployed through no fault of their own , while others are chronically out of work for a reason . People with mental ilnesses and/or substance abuse problems often have a hard time staying employed . This population is also more likely to be involved in an auto accident . Sometimes those temporarily out of work get lumped into this category . 