If you’re a remote worker who is using their car less, you may be able to get a more affordable car insurance policy.
As the pandemic continues, some workers have remained in a work-from-home situation. There have been some perks to this situation, including no stressful commute, fewer distractions from coworkers, and the chance to wear more comfortable clothes throughout the day.
Remote workers can also save money in a number of ways, including on the costs of car insurance. Keep reading to see how you may be able to trim your policy cost if you’re driving a lot less.
How to save on your car insurance policy as a remote worker
If you’re currently working remotely, now is an excellent time to review your auto insurance coverage.
Your annual driving mileage is factored into the insurance rate that you pay. If you drive a lot of miles each year, your rate will be higher because you’re using your car more, which increases risk. If you drive very little, there’s less risk of an accident, so your rate will be lower.
If you’re still working remotely, it’s a good idea to contact your auto insurance company and adjust your policy to reflect your current driving situation. A quick call to your insurer is all it takes.
Example: If you previously drove 12,000 miles or more per year when you commuted, and you now drive fewer than 6,000 miles per year because you’re working at home full-time and only run occasional errands, this lifestyle change should impact your rate. Contact your auto insurer to update your policy and see how much money you could save.
Other ways to save on auto insurance costs
There may be other ways for you to trim your auto insurance costs. Making some adjustments could lower your rate and allow you to add more money to your savings account. Here are some ways to lower your auto insurance policy rates:
- Pay attention to the type of car you drive. The make and model of your car will impact your rate. If a car has many safety features, it may be cheaper to insure. Car repair costs can also affect insurance rates. If you’re in the market for a replacement vehicle, you may be able to save on insurance by choosing the right vehicle. Get insurance quotes before buying your next car.
- Adjust your deductible. When you set a lower deductible amount, your policy will cost more. You’ll need to pay your deductible before your insurer pays out on your claim. Choosing a higher car insurance deductible — for example, $1,000 instead of $500 — will lower your premium costs. But make sure you set aside enough money to cover the deductible in a savings account first. This way, you’re prepared if an accident happens.
- Drive safely and remain accident-free. Auto insurance goes up after an accident. So drive as carefully as possible. Drivers with no accidents on their driving record will pay lower policy rates than those who do. One car insurer, Progressive, notes that a driver with no accidents or tickets within the last three years could pay a policy price that averages 31% less than a driver who has accidents and violations in that timeframe.
- Shop around for coverage. Not all auto insurers charge the same rates. Comparing policy rates with multiple insurance companies can result in significant savings. It’s good practice to do this every year to ensure the rate you’re paying is still the most affordable option available.
And for more ideas, check out other ways to save on your auto insurance policy.
If you’re a remote worker who hasn’t looked at your auto insurance policy in years, take the time to contact your insurer and update your policy to reflect your current lifestyle and driving habits. You may be able to pay less if you’re driving a lot less.
Ensure you are selecting the right car insurance coverage
Auto insurance is something that most people don’t think about very frequently. While there are several factors that drive people to look to change auto insurance carriers, it is important to educate yourself in order to ensure you select the right coverage for you. The right coverage means not paying for coverage you don’t need and not foregoing coverage that would make sense for your personal situation. While price is a major factor, we also consider other factors such as customer service and the claims process when choosing what we think are the best auto insurance providers.