As the pandemic continues, some workers have remained in a work-from-home situation. This has some advantages, including the absence of stressful commutes, fewer distractions from co-workers, and the ability to wear more comfortable clothes throughout the day.
Remote workers can also save money in a number of ways, including auto insurance costs. Keep reading to see how you might be able to lower your policy cost if you drive a lot less.
How to save on your auto insurance as a telecommuter
If you are currently working remotely, now is a great time to review your auto insurance coverage.
Your annual mileage is factored into the insurance rate you pay. If you drive a lot of miles each year, your fare will be higher because you use your car more, which increases the risk. If you drive very little, there is less risk of an accident, so your fare 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 enough.
Example: If you used to drive 12,000 miles or more per year when commuting to work, and now drive less than 6,000 miles per year because you work at home full time and only run errands occasionally, 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 to lower your auto insurance costs. Making a few 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 are driving. The make and model of your car will have an impact on your price. If a car has many safety features, it can be cheaper to insure. Auto repair costs can also affect insurance rates. If you are looking for a replacement vehicle, you may be able to save on insurance by choosing the right vehicle. Get insurance quotes before you buy your next car.
- Adjust your deductible. When you set a lower deductible amount, your policy will cost more. You will need to pay your deductible before your insurer pays your claim. Choosing a higher auto insurance deductible – for example, $ 1,000 instead of $ 500 – will lower the cost of your premiums. But first make sure you set aside enough money to cover the deductible in a savings account. This way you are prepared in the event of an accident.
- Drive safely and avoid accidents. Auto insurance increases after an accident. So drive as carefully as possible. Drivers without an accident on their driving record will pay lower policy rates than those with one. One auto insurer, Progressive, notes that a driver without an accident or traffic ticket in the past three years could pay an average insurance price 31% lower than a driver with accidents and offenses over the course of the year. of this period.
- Shop around for cover. Not all auto insurers charge the same rates. Comparing policy rates with multiple insurance companies can result in significant savings. It is a good practice to do this every year to ensure that the rate you are paying is always 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 reviewed 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 drive a lot less.