Telecommuting insurance offers drivers lower rates in exchange for less time spent on the road.
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UPDATED: Jun 23, 2021
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- Telecommuting car insurance offers drivers lower rates in exchange for less time spent on the road
- Drivers might be eligible for insurance discounts
Your car insurance premium is based on how likely you are to get into an accident. This is because the more you drive, the more likely you are to be involved in a crash. In other words, the more time you spend behind the wheel, the more money you’ll be spending on car insurance.
But what if you work from home? As more and more people work from home each year, daily driving happens less and less. Telecommuting car insurance is an alternative many drivers are looking into to save money.
Telecommuting car insurance offers drivers lower rates in exchange for less time spent on the road.
Fortunately, many car insurance companies do offer discounted rates of car insurance for remote workers in exchange for lower mileage.
Telecommuting Car Insurance Rates
Telecommuters have several options when it comes to changing their car insurance policies. The first is switching to a low mileage policy.
In 2018, the average commuter traveled 13,500 miles (or spent 858,637 minutes behind the wheel). In 2020, this number decreased 17% as employers switched to a remote-based work model.
Since 13,500 miles is the national average of miles traveled in a given calendar year, most insurance companies will consider anything less than that to be low mileage. The table below shows how much money you could be saving if you drive less than the national average.
|Commute And Annual Mileage||USAA||GEICO||State Farm||American Family||Nationwide||Progressive||Farmers||Travelers||Allstate||Liberty Mutual||Grand Total|
|10 miles commute. 6000 annual mileage.||$2,482.69||$3,162.64||$3,175.98||$3,401.30||$3,437.33||$4,030.02||$4,179.32||$4,399.85||$4,841.71||$5,995.27||$3,884.36|
|25 miles commute. 12000 annual mileage.||$2,591.91||$3,267.37||$3,344.01||$3,484.88||$3,462.67||$4,041.01||$4,209.22||$4,469.96||$4,934.20||$6,151.63||$3,973.33|
The cost of telecommuting car insurance for remote workers will vary depending on the type of insurance carrier you have and what they specifically consider to be low mileage.
Another option drivers have is to switch to a pay-per-mile policy. With pay-per-mile car insurance, drivers will usually be charged a base rate in addition to how many miles they put on their vehicle.
As it stands, there are only a few companies that offer pay-per-mile policies. We’ve provided a list of them below:
Estimated Pay-As-You-Go Car Insurance Programs and Their Discounts
|Pay As You Go Programs||Car Insurance Savings|
|Allstate Drivewise||Average discount is between 10% and 25%.|
|Esurance DriveSense||Depends on the state where you live.|
|GEICO DriveEasy||Depends on the state where you live.|
|Liberty Mutual RightTrack||Average of 5 to 30%|
|Metromile||$611 or a maximum of 50%|
|Nationwide SmartRide||Up to 40%|
|Progressive Snapshot||$130 on average|
|Root||Maximum savings is $900/yr or 70%|
|State Farm Drive Safe & Save||15% savings|
This type of policy is beneficial if you’re only using your vehicle for local errands or driving into the office a few times a month. On average, a pay-per-mile insurance policy can save you about $700 per year.
If you decide to move forward with this plan, your insurance carrier will install a mileage tracker in your vehicle.
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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How to Lower Your Car Insurance Rates
The best way to lower your car insurance premium is by taking the time to shop around and asking your insurance carrier about discounts. Insurance discounts are categorized by policy, vehicle, and driver discounts. As such, many insurance companies the following types of discounts:
- Safe driver discounts
- Accident-free discounts
- Military discounts
- Senior discounts
- Electronic billing discounts
- Multi-policy discounts
- Anti-theft discounts
- Loyalty discounts
- Usage-based discounts
Check out this table for the car insurance discounts offered by different companies:
Car Insurance Discounts Offered by Top Companies
|Discount Type||Allstate||American Family||Farmers||Geico||Liberty Mutual||Nationwide||Progressive||State Farm||Travelers||USAA|
|Adaptive Cruise Control||x||x||x|
|Daytime Running Lights||x||x||x||x||x||x||x||x||x|
|Electronic Stability Control||x||x||x||x||x||x|
|Forward Collision Warning||x||x||x|
|Lane Departure Warning||x||x||x|
|New Customer/New Plan||x|
|On Time Payments||x||x|
|Seat Belt Use||x|
|Students & Alumni||x||x||x||x|
If you qualify for any discounts, you could be saving upward of 35 percent on your annual premiums.
Do I Still Need Auto Insurance if I Work From Home?
Even if you’re working from home or only commuting to the office a couple of times per month, you should still opt for car insurance coverage. Not only is it a mandate in many states, but it covers you in the event of vandalism, theft, and other unexpected catastrophes.
Likewise, while many employers have switched to remote office settings, things can change as the restrictions put in place to combat the pandemic are lifted. The last thing you want is a lapse in coverage, as this increases your annual premium when you go to enroll in a new policy.
Are you ready to compare quotes for car insurance for remote workers? Type your zip code in the box below to get started.