COVID-19 created a very abrupt change in working life. A huge percentage of employees were suddenly told to stay home, to work from home. And, it looks like many will continue to do so for the foreseeable future. Thanks to technology, many jobs can still be done remotely.
But now that so many people are working from home and driving much less, what does this mean for your auto insurance rates? It stands to reason that if you are driving less you are less of a risk and, therefore, you should pay less for your car insurance.
Let’s take a look and see how telecommuting affects your auto insurance rates.
How Are Car Insurance Rates Determined?
Car insurance companies take many factors into consideration when determining car insurance premiums. Some of these include:
- Your location
- The type of car you drive
- Your driving history
- Your personal factors like age, gender and marital status
- How many miles you drive
The last factor, how many miles you drive, is an important factor. Afterall, the more you drive the more likely you are to have an accident or incident and to have to use your car insurance for repairs. Because of telecommuting, you may now have an opportunity to reduce your costs because you are driving less.
Car Insurance Rates and Telecommuting
You still need your car insurance, even if you are working from home, but you many want to take the time to find out if your insurance company has any breaks for you. Some carriers are now offering special rates for those who find themselves without their lengthy daily commute.
Even if you don’t see a special rate, you should update your policy information and let your insurance company know how many fewer miles you are now driving.
Pay-Per-Mile Car Insurance
Another option you may look into is the emerging trend of pay-per-mile insurance. This type of coverage uses telematics, or a device attached to your vehicle, to track exactly how many miles you drive. If you don’t drive much anymore, this can mean savings for you.
Your premiums will be based not on an estimate, but on the exact number of miles you drive each month. Pay-per-mile is not available in all states or through all insurance companies, but if it’s available in your area, you may find this a much cheaper option.
However, to find affordable car insurance for telecommuters, the best way is to shop around. Comparing quotes from several companies will not only help you understand your new normal, it will also help you get the best rate.
InsuranceWins makes it easy. Just start today by entering your information into our free quote tool and see how much you can save!
