The closure of many offices and workplaces due to the Coronavirus pandemic has meant that millions of Americans are now working from home. With so many more people now working remotely nowadays because of the COVID-19 pandemic, there is a possibility that you are overpaying for auto insurance.
If you currently do not drive to the office every day as you used to before, technically, your chances of being involved in an accident are minimal or at least much less. So, are you stuck in your current auto insurance policy, even when your driving habits have changed as you are not going into the office each day? According to AutoInsurance.org, there are a number of ways you can cut your auto insurance rates if you are now telecommuting.
In this article we will look at various ways you can reduce your auto insurance while working from home.
Advantages Of Working From Home
Remote work has grown by 159% since 2005. According to a Global Workplace Analytics and FlexJobs report, that equates to nearly 5 million Americans who are now working from home. This growth has been made possible thanks to technological advancements.
Many employees find remote work appealing due to the following reasons:
- Greater autonomy
- More flexible schedules
- Increased work satisfaction
- A customized work environment
- Enhanced productivity
- No rush hour commute
- Annual savings of around $4,000
What Influences Your Auto Insurance Rate?
So, what’s the connection between remote work and auto insurance? When it comes to auto insurance premiums, various factors are taken into account. They include:
- Your gender, age, and marital status
- Your driving record
- Your credit score
- Whether you bundle multiple policies
- What type of car do you drive
- How often do you drive
As you can see, when you switch to working from home, you have the chance to make a difference in that final factor.
Car Insurance Work From Home Benefits
How many miles do you drive for your daily commute? This is one of the first questions car insurance companies ask. The average American commute is 32 miles and takes 46 minutes to complete.
By working remotely, you avoid this daily commute and considerably cut your time on the road. More so, by avoiding rush hour and driving less, you are less likely to get involved in accidents.Many car insurance providers appreciate this and reward you by cutting your car insurance premium.
How Much Can You Save On Car Insurance?
So, how much will you save on auto insurance from working remotely? It depends on your car insurance company.Advisably, make a call and notify them you have started working from home. Also, ask them what discounts they can offer.
Pay-Per-Mile Auto Insurance
Working from home is not an option for everyone. For instance, it is not a practical option if you work in the service business, retail, or health sector. However, any cut back on your work commute can have a positive effect on your insurance costs.
The mileage bracket or band usually determines the premium you fall into. Case in point, whether you drive 10,000 or 15,000 miles a year, you will be charged the same amount since you probably fall under the same mileage band.
However, when you buy a pay-per-mile car insurance plan, you only pay for coverage on the exact miles you drive. It makes sense to only pay for the miles you have traveled. Thus, pay-per-mile can be a practical option when it comes to saving on your car insurance.
How To Approach Your Auto Insurance Company
The easiest way to find the best car insurance rate in your state is to simply ask. As we mentioned earlier, call your insurance company and explain that you are working remotely. Or, you are a medical professional looking for a customized auto insurance cover for health workers.
Apparently, health workers’ schedules are more programmed and specifically drive to the hospital and back home instead of spending hours on the road, which is the case in many other occupations.
Inform them that without your daily commute or with programmed trips (like in the case of health professionals), your mileage has decreased considerably. Use specific examples (the 25 miles you had to drive to and from the office daily, compared to the rare weekend use your vehicle gets currently). You can request to be moved to a “pleasure only” plan to cut your insurance costs. Alternatively, you can request the provider to increase the deductible in your policy or reduce optional coverage.
While you can contact your provider by chat support or email, speaking to an insurance agent over the phone is more advisable. We suggest you start your conversation as follows. “Hello, my name is John Doe. I am calling to inquire about my auto insurance premium. I’ve been looking into insurance rates and trying to find ways to cut my expenses. Can we go over my policy to ensure I’m receiving the best rate?”
Get A Favorable Auto Insurance Rate Today
Besides working remotely, you can save a significant amount of money on costly auto insurance by shopping around, doing your research and speaking with your insurer. Compare rates from thousands of auto insurance companies in your state and see which one suits you best and your personal situation – especially if you’re now working from home.
Most importantly, give priority to companies that appreciate your telecommuting or remote work status. Many insurers are now well versed in this and will accommodate this, understanding that in the current situation and economy, there is a need to support the millions of Americans who now use their home as their primary place of work.
Through talking to your current insurer, or shopping around for an insurer that will consider your new teleworking situation, you can reduce your auto insurance premiums and save money in the process. Good luck!
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