Unemployed ‘at greater risk’ of high premiums

Those currently out of work could find themselves paying more for products such as home insurance, a comparison website has warned, suggesting that those in debt could find their situations worsening as a result.

According to Confused.com, many people remain unaware that unemployment can affect their insurance premiums, an indication that the possibility of sliding further into debt is real.

While many believe that prices are lowered if someone is home during the day, providers see this as increasing the chance of accidental damage, which in turn pushes up the premium.

Head of home insurance at Confused.com Darren Black observed that “Britain’s homes are under serious financial pressure” and that joblessness meaning higher prices “may come as a surprise”.

“With the house occupied for longer periods of time, by more people, it is realistic for providers to perceive higher risks associated with this,” he added.

Last month, Beccy Boden Wilks of the Money Advice Trust warned Britons that the hardships felt as a result of the recession are likely to continue, despite intimations of a recovery – indicating that financial difficulties could be extended.

By Sarah Adie