The COVID-19 pandemic has changed the way people work. And while many companies are still trying to figure out how to adapt, there has been a shift to telecommuting. Working from home is now an option for a majority of global businesses and the accommodation seems to still be rising. The bottom line is that people need flexibility in uncertain times, and so do companies.
If you have not thought of it yet, you should consider how working from home can help you save money on car insurance. Afterall, if you are driving less you should see some savings, right?
Auto Insurance Rates and Working from Home
When you apply for auto insurance you will be asked to complete a questionnaire about yourself, your vehicle and your driving. The insurance company will want to know how much you will be driving each vehicle you are insuring. You may see a question about how many miles you expect to put on the vehicle or what type of driving you do (i.e., commuting, pleasure, business).
If you already have car insurance, you should review your answers to these types of questions if you are now telecommuting full- or part-time and are driving less. Telecommuting rates are lower than average rates because there is less risk to the insurance company since you are driving less.
Auto Insurance Discounts for Working from Home
Along with potentially cheaper rates for working from home, you are likely eligible for discounts for telecommuting. Many insurance companies offer a discount for low-mileage drivers.
The level of discount varies by insurance company. Some companies set the limit very low, from 7,000-8,000 miles per year, which can be very difficult to meet. Others offer up to 12,000 miles per year, however. If you can meet the mileage limits, and not exceed them, you could save up to 10% on your auto insurance rates.
If you can’t meet these strict limits, you could also consider pay-per-mile auto insurance.
What Is Pay-Per-Mile Auto Insurance?
Some companies are now offering a fairly new consumer auto insurance option known as pay-per-mile insurance. This type of coverage uses your actual number of driving miles to calculate your rate. Whereas, traditional insurance relies on your estimate of use, pay-per-mile insurance uses telematics to know exactly how many miles you drive.
Telematics simply means that your mileage information is recorded either using an app on your phone or with a device attached to your car that collects data.
Pay-per-mile insurance can give you a better discount than the standard 5%-10% offered through low-mileage discounts.
When you’re ready to take advantage of your new telecommuting status in order to reduce your auto insurance rates, InsuranceWins can help. Our fast and easy form will have you comparing telecommuting auto insurance quotes in no time.