Gianetta Palmer is a writer for CarInsurance101.com, copywriter, and essayist. Her work has appeared in EverydayHealth.com, Healthline, and The Dyrt Magazine. She is the author of Scrunchie-Fried and writes a lot about car insurance in her spare time.

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Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in automa...

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Reviewed by Melanie Musson
Published Insurance Expert

UPDATED: Jun 23, 2021

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Just What's Essential

  • 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 MileageUSAAGEICOState FarmAmerican FamilyNationwideProgressiveFarmersTravelersAllstateLiberty MutualGrand 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
Grand Total$2,537.30$3,215.01$3,260.00$3,443.09$3,450.00$4,035.52$4,194.27$4,434.91$4,887.95$6,073.45$3,928.85
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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 ProgramsCar Insurance Savings
Allstate DrivewiseAverage discount is between 10% and 25%.
Esurance DriveSenseDepends on the state where you live.
GEICO DriveEasyDepends on the state where you live.
Liberty Mutual RightTrackAverage of 5 to 30%
Metromile$611 or a maximum of 50%
Nationwide SmartRideUp to 40%
Progressive Snapshot$130 on average
RootMaximum savings is $900/yr or 70%
State Farm Drive Safe & Save15% savings
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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 TypeAllstateAmerican FamilyFarmersGeicoLiberty MutualNationwideProgressiveState FarmTravelersUSAA
Adaptive Cruise Controlxxx
Adaptive Headlightsxxxx
Anti-lock Brakesxxxxxxxxxx
Anti-Theftxxxxxxxxxx
Claim Freexxxxxxxxxx
Continuous Coveragexxxxxx
Daytime Running Lightsxxxxxxxxx
Defensive Driverxxxxxxxxxx
Distant Studentxxxxxxxxx
Driver's Edxxxxxxxxx
Driving Device/Appxxxxxxxxx
Early Signingxxxxxxxx
Electronic Stability Controlxxxxxx
Emergency Deploymentx
Family Legacyxxxx
Family Planxxx
Farm Vehiclexxx
Federal Employeexxx
Forward Collision Warningxxx
Full Paymentxxxxxxx
Further Educationxxxx
Garaging/Storingxxx
Good Creditxxx
Good Studentxxxxxxxxxx
Green Vehiclexxxx
Homeownerxxxxxxx
Lane Departure Warningxxx
Life Insurancexx
Low Mileagexxxxxxxxxx
Loyaltyxxxxx
Marriedxxxxx
Membership/Groupxxxx
Militaryxxxxxx
Military Garagingx
Multiple Policiesxxxxxxxxxx
Multiple Vehiclesxxxxxxxxx
New Addressx
New Customer/New Planx
New Graduatex
Newer Vehiclexxxxxxxx
Newly Licensedx
Newlywedsx
Occasional Operatorx
Occupationxxxxxx
On Time Paymentsxx
Online Shopperx
Paperless Documentsxxxxx
Paperless/Auto Billingxxxxxxxxx
Passive Restraintxxxxxxxxxx
Recent Retireesx
Safe Driverxxxxxxxxx
Seat Belt Usex
Senior Driverxxx
Stable Residencexx
Students & Alumnixxxx
Switching Providerxxxx
Utility Vehiclexxx
Vehicle Recoveryxxxxxxxxxx
VIN Etchingxxxxxx
Volunteerx
Young Driverxxx
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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.