Is it fair to charge higher insurance premiums to the unemployed?

posted 01-23-2012 by jarango

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A recent study from three insurance brokers in the United Kingdom showed that people without jobs are likely to pay an average of 30 percent more for their auto insurance. The reason for the higher premiums has to do with the increased risk of insuring unemployed motorists who may:

-Prove less likely to maintain their vehicles
-Pose a greater credit risk
-Be more likely to be involved in a fraudulent claim

Some critics claim this practice is discriminatory, and that "car insurance shouldn't be going up at the moment when you can least afford it." But, on the other hand, the data seems to back up the increased prices.

What do you think? Is it fair to charge customers without jobs a higher premium just because they might be riskier to insure? Or, is charging an unemployed person more for car insurance just a way of kicking them while they're down?