What if remote work could help you save money on car insurance each year?
Since the beginning of the COVID-19 pandemic, the number of remote worker employees has been increasing. More people are spending their work days at home rather than at the office.
However, can you get a lower cost policy working from home? Keep reading to discover the answer!
Once you become an employee working from home, you will be driving fewer miles each year. This means you are at less of a risk of getting into an accident than other drivers.
You may be able to get a better price through your insurer. Sometimes, this comes down to making major updates to your policy. Other times, it comes down to small reductions on your current policy.
Incidentally, while we are focusing on those who work fully from home for their employers, you may qualify for savings if you are on a hybrid work schedule. Once you have lower annual mileage than you once did, you may be able to get better rates from different carriers.
It’s possible to lower your rates through various price benefits. For example, insurers often offer these to drivers with a clean driving record because they are at a lower risk of getting into an accident. And they may be available to those who install special anti-theft equipment in their vehicles.
There are two special ones you may be able to qualify for now that you are a WFH employee. Now that your current driving situation has changed and you aren’t dealing with long drives and commute time, this is the perfect opportunity to start saving.
The first type of discount you should ask your carrier about is a usage-based one. Usage-based insurance means that your carrier is going to install a special tracking device on your vehicle. This device keeps track of how often you drive and how far you go.
Once the carrier sees that you really are driving less than you were before as a WFH employee, they will be able to lower your current premiums. Keep in mind, though, that this device also transmits information about your driving practices to your insurance company. If they see you engaging in unsafe driving practices, you may end up paying more rather than less!
However, once you begin remote work, you aren’t going to drive that many miles throughout the year. As long as you can demonstrate to the insurer that you are a safe driver, you can get the usage-based adjusted rate. You may also be able to qualify for other ones such as a safe driving discount!
If you like the idea of saving on coverage for driving less but you don’t want your carrier tracking your moves, you should consider asking your insurance agent about a pay-per-mile reduction. With these kinds of low-mileage price breaks, you end up paying a fixed price per mile driven on top of a certain base rate.
This still means reporting each month to your auto insurer, but this may be easier (or just more convenient) than having a tracking device on your car. And you may be pleasantly surprised by how much money you can save each month with pay-per-mile.
Change Up Your Plan
There are other options to save money on your premiums, and that includes bundling car and home insurance. When you get your homeowners from the same carrier that offers your car policy, you may be able to save on each.
While bundling is always a good idea, the real key to saving money, for those with more flexible jobs that require little to no commute, is to change your existing policy. Chances are you took out your current auto insurance policy when you drove to a dedicated office space each week.
Now that you’ve ditched the annoying traffic and made home your new workplace, there are two big options you may want to consider to start saving big.
When you took out your original policy, the professionals you spoke to may have made a low deductible seem like the best deal. After all, a low deductible means you pay less out of pocket in the event of getting into an accident and filing claims.
Now that you aren’t on the road as much for your job, though, you are far less likely to get into an accident in the first place. That makes this a good time to raise your deductible thanks to your new work circumstance and save significant money on your premium each month.
Pop quiz: how much coverage does your car have? Traditionally, the industry encourages you to get as much coverage as possible. In fact, major insurers often push “full coverage” (which is a combination of liability, collision, and comprehensive).
However, out of all the potential plans you could have, full coverage costs the most money. And spending that much now that you are only a part-time driver is, frankly, overkill.
The solution? Change up your policies and reduce your overall coverage. Since remote employees don’t drive as much, you may not need liability, collision, and comprehensive coverage. And even if you don’t drop everything entirely, you can lower your rates and effectively lower your monthly premium.
Situations That Lead to WFH Prices
Besides those employees who work for a company and are now stationed in a home office, there are those who are self-employed or who own their own small business. For these workers, the circumstances may be a little different since the state you live in may have some regulations about what types of businesses can be administered from your home – and don’t forget that it may change up your tax situation, as well.
· Home Offices and Insurance
First of all, you’ll still need to have a cheap auto policy or a commercial auto package, depending on your circumstances. But you should definitely look into beefing up your homeowners insurance coverage in this situation. Or, at the very least, if your home office situation has changed, you need to let your homeowners insurance know.
For example, do you now have expensive and hard-to-replace equipment at your home? If your employer isn’t insuring it, then you need to find homeowners insurance coverage that will. Don’t forget to check with your state to see, for example, if there are zoning or other regulations and options pertaining to types of home-operated business concerns.
Now you know how to get lower car insurance working from home full time. But do you know who can provide the coverage you’ve been looking for?