Drivers across the country could be wasting hundreds of pounds by listing their employment status inaccurately on car insurance forms.

Data revealed by MoneySupermarket shows that some drivers are paying around £700 more than they need to by describing themselves as unemployed when other descriptions are more fitting.

For example, students without jobs who list themselves as ‘unemployed’ (instead of the more accurate ‘student’) could be adding 51 percent to the price of their car insurance – an average increase of £677 per policy.

Young people embarking on apprenticeships can also be penalised for a less surprising mistake. Naturally, many write ‘apprentice’ on insurance forms, but they could save an average of around £180 a year by calling themselves students.

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And youngsters aren’t the only ones paying the price for inaccurate job statuses. Retirees who describe themselves as unemployed, rather than ‘retired’, can find themselves paying 37 percent more for their cover.

Stay-at-home parents can fall foul of this issue, too. Those marking themselves down as jobless could save an average of just under £150 (26 percent) by calling themselves a ‘housewife’.

Kevin Pratt, MoneySuperMarket’s consumer affairs expert, said: ‘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.

‘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 percent more for your cover than you need to.’