Telecommuting Auto Insurance

Telecommuting auto insurance rates are often cheaper than average, because drivers that are on the road less mean a lower risk to insurance companies. Any change in your commute can affect auto insurance, so notify your insurance company right away. Low-mileage auto insurance discounts for telecommuters are offered by a number of insurance companies. Pay-per-mile car insurance may also be a good option for telecommuters.

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Chris Tepedino is a feature writer that has written extensively about auto insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and Cinncinati.com. ...

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Reviewed by Rachael Brennan
Licensed Insurance Agent

UPDATED: Jul 19, 2021

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Can't-Miss Facts

  • Elevated commute rates tend to result in a premium increase of 2.33%
  • You can pay less in auto insurance rates for driving less annually
  • You can also get discounts for driving fewer miles

Are you looking to cut your auto insurance rates by telecommuting? Working remotely can decrease your auto insurance costs.

Telecommuting is among the many factors that can affect your auto insurance premiums. Telecommuting auto insurance is cheaper because you’re on the road less, especially in the age of COVID-19, and are therefore at less risk for a collision. Do you need auto insurance if you telecommute? Even if you’ll be on the road less, you’ll still need coverage.

One way to save if you are telecommuting is to look into top usage-based insurance programs. These programs, available from many telecommuting auto insurance companies, offer affordable telecommuting auto insurance options to work-from-home drivers.

Keep reading to learn more about how telecommuting affects your auto insurance. To see how much you could save right now, enter your ZIP code into our helpful tool above to find affordable telecommuting auto insurance rates in your area today.

How does working from home affect auto insurance rates?

How does telecommuting affect auto insurance rates? What is the effect on car insurance if I work from home? Can I lower my auto insurance rates if I start telecommuting? Do you need auto insurance if you telecommute?

One of the many changes to arise from COVID-19 is the tendency for companies to move towards a work-from-home approach. According to Review42, 55 percent of businesses globally offer work-from-home options in some capacity, and this number is only growing with the pandemic.

In these uncertain times, it is worth recognizing that this work-from-home culture can help you save money on your auto insurance. This table shows how a difference in commuting mileage can drastically affect your rates.

Average Annual Rates by Commute Length
Company10 miles commute/ 6,000 annual mileage25 miles commute/ 12,000 annual mileage
Allstate$7,227.85$7,653.06
Geico$3,765.00$3,802.25
Liberty Mutual$5,193.97$5,542.32
Nationwide$4,339.60$4,339.60
Progressive$5,583.30$5,583.30
State Farm$3,278.22$3,517.12
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Insurance companies are all about analyzing risk. The greater duration of time you are on the road, the greater the chances are you’ll be in a collision. Working from home decreases that risk, and if you are currently in this position, you should inform your insurance provider.

What auto insurance discounts are available for telecommuters?

You may very well be entitled to a working-from-home car insurance discount on your rates. You can also consider a pay-per-mile auto insurance policy. What is pay-per-mile auto insurance?

Pay-per-mile auto insurance is coverage that is calculated based on the actual number of miles you drive. Most auto insurance companies will charge you a low monthly base rate and then additional fees based on the number of miles you drive in a specific period.

Low-mileage discounts are also offered by most insurance companies. These discounts are available for drivers who have an annual mileage that is lower than the average 12,000 miles per year. This type of discount could save drivers up to 10% on their rates.

You can buy telecommuting auto insurance from any insurance company the discounts and usage-based options will vary.

If you are wondering how to ask your boss if you can work from home, the best course is to be prepared. Review your company policies, present a strong case for how you will be able to perform your job remotely, and be flexible to any concessions the company asks of you. If your boss agrees, you may be able to cut your car insurance rates by telecommuting.

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What other factors affect auto insurance rates?

Insurance companies look at many factors when calculating what determines your auto insurance rate. Other than miles driven they will look at things like your age, where you live, the make and model of your vehicle, and your driving history.

There are many ways you can save money on auto insurance. There are student discounts, multiple policy discountsdefensive driving discounts, and any number of safety feature discounts.

Be aware of what discounts you can take advantage of and consult your insurance representative so you can get a lower premium today.

Can you negotiate with auto insurance companies?

No, you cannot negotiate your rates with an insurer. They analyze specifics about your life and driving habits in order to determine your coverage rates. This is why you should provide them with any information that may lead to cheap auto insurance rates. If you have been working from home or may be moving towards it, you should absolutely inform your insurance provider.

Some companies have work-from-home lower car insurance policies that require their employees to occasionally come into the office. Other companies have fully implemented work-from-home schedules. Inform your insurance agent of the specifics and see if they can adjust your rates accordingly.

Type your ZIP code into our helpful and free tool below to compare telecommuting auto insurance quotes right now.

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Frequently Asked Questions: Telecommuting Auto Insurance

If you still have questions about telecommuting and car insurance, check below for your answers.

#1 – What company has the best auto and home insurance rates?

As a general rule, USAA and State Farm offer affordable rates for both auto and home insurance with discounts for bundling. Your rates will vary, however, so shop around.

#2 – Why is telecommuting trending?

There is a rise in the number of people working from home for many reasons including companies reducing office space, flexible scheduling, and allowing employees to care for children. In 2020 the number of telecommuters jumped due to the COVID-19 pandemic which caused many people to quarantine for months.

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