Car insurance penalty for OAPs who say they’re jobless

DRIVERS who mistakenly describe themselves as ‘unemployed’ when buying car insurance can pay up to £680 more, according to a report.

Retired workers, housewives and students can all fall into the trap of paying more than they need to.

Pensioners who describe themselves as jobless will be charged almost £100 extra on average – taking their bill to £364. Stay-at-home mothers face paying £709 instead of £563, according to an analysis by Moneysupermarket.com.

Meanwhile, students who say they are unemployed face an average premium of £2,005 – an increase of almost £680.

Insurers view unemployed drivers as a higher risk because they may be using their car more to look for work, travel in unfamiliar areas for interviews or not have the cash to maintain their vehicle.

Kevin Pratt, of Moneysupermarket.com, said: ‘It’s worth exploring your options at each stage. if you describe yourself as “unemployed” when you stay at home to look after the home and family, you could end up paying more.’