The basic car insurance mistake that could cost you £677 a year – and how to fix your policy
Brits could be paying up 50 per cent more for incorrectly filling out their own details when looking for a new car insurance policy - and drivers that aren't working full-time can be the worst hit
BRITISH motorists could be spending far more than they should on their car insurance, simply by selecting the wrong profession when getting a quote.
New research has found drivers could pay almost £700 more by saying they're unemployed when searching for an insurance policy.
MoneySuperMarket found students were affected most by the simple error, which could increase their premium by as much as 51 per cent.
Those who list their occupation as "unemployed" when they are actually studying full-time could see their insurance costs rise by a whopping £677.21.
Mature-age students also face a similar increase if they incorrectly identify themselves as "unemployed", adding an average of £510 to their premium.
But it's not just students that are heavily affected.
Retired drivers could see their premiums rise by as much as 37 per cent if they don't put themselves in the right category.
If you've given up work, you could have almost £100 added to your bill for claiming to be "unemployed", while the same is true for stay at home parents.
The new "housewife" category means those that chose to stay at home are no longer penalised by having to classify themselves as either "unemployed" or "retired".
Motorists need to be sure to select the category that best describes their specific situation when searching for a new policy to make sure they get the best possible deal.
Kevin Pratt, consumer affairs expert at MoneySuperMarket, commented: “To get the best cover at the best price, you have to choose the most accurate answer at every stage of the quotation journey.
"And that can mean trying alternatives to find the one that best matches your situation, instead of plumping for whatever seems most obvious.
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“It’s worth taking your time and exploring your options at each stage of the online journey.
"For example, if you describe yourself as ‘unemployed’ when in fact you’re a student, you’re retired or you stay at home to look after the home and family, you could end up paying up to 50 per cent more for your cover than you need to.
"Regardless of occupation or status, drivers should avoid settling for the renewal quote they receive from their existing insurer, because firms tend to reserve their best prices for new customers."