Save on Car Insurance While Working from Home

Millions of people began working from home during the pandemic and many are still working remotely today. You could add money to your budget by saving on car insurance—after all, telecommuting (as well as shopping online and remote learning) means less time in the car and fewer miles on the odometer, which are two factors in calculating insurance costs for most car insurance companies and policies.

Here are some options to consider when looking to shrink your car insurance bill and perhaps give yourself a little more wiggle room in your budget.

Sell or put your second car in storage

If you were previously a two-car household with two separate commutes, but now find you and your spouse are both working from home more often, you could save yourself the most money by selling one of your cars. Yes, it will require a little more juggling on days when you both want to go out, but the extra time spent on carefully planning your schedules will pay you back in savings on a car payment, gas, insurance coverage, and general maintenance.

Another option is to put one of your cars in storage until you know if you’ll ever return to your old commute. Leave the car parked in your driveway or in the garage, don’t drive it, and tell your insurance company that you want to change your policy coverage for the car. Often, insurance coverage for vehicles in storage are $10 or less a month, but it allows you to keep any discounts associated with bundled or multi-car policies. When, or if, you decide to start driving the car again, make sure to call your insurance company to get whatever coverage your state requires to be road legal.

Change to a pay-per-mile policy

As the name suggests, with this type of policy you only pay for the miles you drive. This pricing structure for comprehensive and collision coverage gives you more control over insurance costs. Rates will be based on actual miles driven, your age, driving history, and ZIP code.

Pay-per-mile policies aren’t available in all states, so you’ll need to call your insurance agent and ask if this is an option for you. If it is, they will have a device you’ll need to install in your car to track and report your mileage each month.

Negotiate with your insurance company

If a pay-per-mile policy isn’t an option where you live, ask about low mileage discounts on the policy you currently hold. Here are things to consider asking your insurance agent:

• Can I lower my auto insurance rates if I’m unemployed?
• Can you reduce my annual mileage/make a change on my policy to pleasure-only use, since I no longer commute?
• Do I qualify for a storage credit if my car isn’t currently being used?
• What are the optional coverages on my policy?
• Can I increase my deductible to lower my monthly payments?

Some insurance companies now offer special telecommuter rates. Even if your auto insurance company doesn’t, it’s worth calling them to see if your changed driving habits can lower your insurance bill.

Switch insurance companies

Now might be a good time to switch car insurance companies, especially if your current agent can’t or won’t adjust your policy. Several large car insurance companies have made some changes to the premiums they charge drivers, beyond a simple one-time discount or slight reduction to the traditional flat-rate premiums.

When shopping for insurance, get all quotes in writing and check the coverage line by line against your existing policy and state insurance requirements before making any decisions. You might even get your current insurance company to match what you’re being offered because they don’t want to lose your business!