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If you’ve ever called an insurance company for a quote on auto insurance, you know there are many different factors that affect auto insurance rates. One of the first questions an agent asks a potential customer is how many miles you put on your car every year.
You may be wondering, can you cut your auto insurance rates by telecommuting? Or, what is the best telecommuting auto insurance company?
If you telecommute, or work from home, your auto insurance rates will be positively impacted. Statistics say the more you’re on the road, the more likely you are to be involved in an accident. Therefore, more driving means higher auto insurance rates.
If working from home results in a significant enough decrease in your annual mileage, you could see some massive auto insurance reductions by switching to usage-based insurance.
Read through our guide to better understand why working from home can lead to a decrease in your auto insurance rates, and to learn how to best take advantage of the savings.
Can’t wait to find your cheaper telecommuting auto insurance premiums? For affordable auto insurance for telecommuters, enter your ZIP code into our FREE online tool above and get multiple auto insurance quotes so you’ll know how much you might pay for auto insurance.
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If you telecommute but wonder how does annual mileage affect auto insurance, the answer might surprise you. Some companies will charge higher rates if you drive more than the national average, while others will not change your rates at all, no matter how many miles per day you drive.
According to Data USA, the average commute length is 25.7 minutes one way. The average American will drive around 14,000 miles per year. However, if you work from home, that number is likely to be much, much lower.
Auto insurance companies take a number of factors into consideration when adjusting your rates, and as we already noted, commute length is one of those.
So what are the best auto insurance products if you work from home? It depends on a variety of factors, like your age, driving record, and what state you live in.
However, to help you estimate how much you might save on auto insurance by telecommuting, take a look at the data in the table below, which shows how your commute can affect your auto insurance rates, all else being equal.
|Insurance Companies||Average Annual Rates for|
10 Mile Commute
(6,000 Miles per Year)
|Average Annual Rates for
25 Mile Commute
(12,000 Miles per Year)
As you can see, commuting has some effect on rates. On average, longer commutes mean rates that are about 2.33 percent higher than shorter commutes. Though, as we mentioned above, different companies handle commute-based rates differently.
For example, State Farm has the highest average increase in this data set at 5.29 percent higher rates for longer commutes. By contrast, Progressive only increases rates by an average of 0.27 percent for longer commutes.
In addition to lower rates for lower annual mileage, some insurance companies offer low-mileage discounts. Take a look at this table to learn more about which of the major companies currently offer this type of insurance discount.
|Insurance Company||Offers Low Mileage Discount||Discount Percentage (if available)|
|American Family||Yes||Not Available|
|Country Financial||Yes||Not Available|
|Liberty Mutual||Yes||Not Available|
|The General||Yes||Not Available|
|The Hanover||Yes||Not Available|
|The Hartford||Yes||Not Available|
As you can see when you look at the data, we only have the discount percentage information for a few of the companies that offer this type of discount.
You’ll need to speak with your insurance agent to find out exactly what kind of discount you may qualify for if you’re a low mileage driver.
Even if your auto insurance company doesn’t offer customers a specific low-mileage discount or per-mile car insurance product, it’s worth calling them and informing them of the reduced number of miles per day you’re now driving if you work at home.
Some companies might lower your rates simply because you’re not driving during the time of day that peak rush-hour traffic occurs.
Remember, auto insurance discounts can stack on top of one another. Qualifying for as many discounts as possible is a great way to help you reduce the cost of your auto insurance.
To ensure you’re really paying your best premiums, you should also compare quotes from multiple companies before choosing a policy.
Working from home significantly cuts down the time you spend on the road, but you’ll still need auto insurance coverage in order to legally drive a vehicle. Just because you don’t commute for work, that doesn’t mean you never drive a car.
According to data reported by the Insurance Information Institute, auto insurance is legally required in 49 states, but 14 percent of American drivers are still uninsured.
The consequences of a person getting caught driving without insurance can range from a hefty fine to getting their license and registration revoked, and even potential jail time.
Even if you’re a telecommuter, you don’t want to get caught driving without insurance on your way to the grocery store or while visiting friends or family. Make sure you have an active auto insurance policy that meets the minimum insurance requirements for your state.
What are those requirements? Find the details about the legal auto insurance minimums in your state in the table below.
|States||Minimum BI & PD Liability Limits||Required Insurance Policies|
|Alabama||25/50/25||BI + PD Liability|
|Alaska||50/100/25||BI + PD Liability|
|Arizona||15/30/10||BI + PD Liability|
|Arkansas||25/50/25||BI + PD Liability, PIP|
|California||15/30/5||BI + PD Liability|
|Colorado||25/50/15||BI + PD Liability|
|Connecticut||25/50/20||BI + PD Liability, UM, UIM|
|Delaware||25/50/10||BI + PD Liability, PIP|
|District of Columbia||25/50/10||BI + PD Liability, UM|
|Florida||10/20/10||BI + PD Liability, PIP|
|Georgia||25/50/25||BI + PD Liability|
|Hawaii||20/40/10||BI + PD Liability, PIP|
|Idaho||25/50/15||BI + PD Liability|
|Illinois||25/50/20||BI + PD Liability, UM, UIM|
|Indiana||25/50/25||BI + PD Liability|
|Iowa||20/40/15||BI + PD Liability|
|Kansas||25/50/25||BI + PD Liability, PIP|
|Kentucky||25/50/25||BI + PD Liability, PIP, UM, UIM|
|Louisiana||15/30/25||BI + PD Liability|
|Maine||50/100/25||BI + PD Liability, UM, UIM, Medpay|
|Maryland||30/60/15||BI + PD Liability, PIP, UM, UIM|
|Massachusetts||20/40/5||BI + PD Liability, PIP|
|Michigan||20/40/10||BI + PD Liability, PIP|
|Minnesota||30/60/10||BI + PD Liability, PIP, UM, UIM|
|Mississippi||25/50/25||BI + PD Liability|
|Missouri||25/50/25||BI + PD Liability, UM|
|Montana||25/50/20||BI + PD Liability|
|Nebraska||25/50/25||BI + PD Liability, UM, UIM|
|Nevada||25/50/20||BI + PD Liability|
|New Hampshire||25/50/25||Financial Responsibility only|
|New Jersey||15/30/5||BI + PD Liability, PIP, UM, UIM|
|New Mexico||25/50/10||BI + PD Liability|
|New York||25/50/10||BI + PD Liability, PIP, UM, UIM|
|North Carolina||30/60/25||BI + PD Liability, UM, UIM|
|North Dakota||25/50/25||BI + PD Liability, PIP, UM, UIM|
|Ohio||25/50/25||BI + PD Liability|
|Oklahoma||25/50/25||BI + PD Liability|
|Oregon||25/50/20||BI + PD Liability, PIP, UM, UIM|
|Pennsylvania||15/30/5||BI + PD Liability, PIP|
|Rhode Island||25/50/25||BI + PD Liability|
|South Carolina||25/50/25||BI + PD Liability, UM, UIM|
|South Dakota||25/50/25||BI + PD Liability, UM, UIM|
|Tennessee||25/50/15||BI + PD Liability|
|Texas||30/60/25||BI + PD Liability, PIP|
|Utah||25/65/15||BI + PD Liability, PIP|
|Vermont||25/50/10||BI & PD Liab, UM, UIM|
|Virginia||25/50/20||BI + PD Liability, UM, UIM|
|Washington||25/50/10||BI + PD Liability|
|West Virginia||25/50/25||BI + PD Liability, UM, UIM|
|Wisconsin||25/50/10||BI + PD Liability, UM, Medpay|
|Wyoming||25/50/20||BI + PD Liability|
If you rarely drive, you may be able to get away with purchasing a very basic policy that only meets the minimum requirements of your state.
A basic-policy will cost much less than a full coverage policy, however, with this cheaper car insurance, you will not be covered in as many situations.
Most states only require you to purchase some form of liability insurance, which will pay for damage to the other driver in an accident you are at fault for.
If your vehicle is parked all day, you might want to add comprehensive coverage to your policy.
Comprehensive auto insurance protects your vehicle from damage when it is not in motion. This includes weather-related damage, vandalism, vehicle theft, and even damage from fires or flooding.
How much will a comprehensive policy cost you each year? Find your state in the table below to see the average annual cost for comprehensive auto insurance.
|State||Average Annual Comprehensive Coverage Auto Insurance Rates|
|District of Columbia||$233.24|
|U.S. National Average||$148.04|
You can also purchase a pay-per-mile policy, which will offer the same protections as a traditional policy, but charges you based on how many miles per day you drive.
Keep reading to learn more about pay-per-mile auto insurance and determine if it is the right insurance option for you.
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Pay-per-mile auto insurance is another option for reducing your rates if you work from home. Essentially, you can purchase liability, comprehensive, and collision coverage for rates that are based on the exact number of miles you drive each day.
For this type of policy, the insurance company will charge you a very low monthly base fee. Then you’ll pay a certain amount for each mile you drive per day (usually it’s only a few pennies). However, the specifics will change depending on what company you use. Some insurers require you to attach a tracking device to your vehicles or install a plug-in device to record your daily mileage and monitor your driving habits. These devices can also help you earn a safe driving discount with some insurers.
Even if you purchase a pay-per-mile policy, other factors besides the number of miles you drive will affect your base insurance rate, like your age, ZIP code, and driving record.
However, because you’re also being charged based on how far you drive per day, your rates will vary from month to month.
Currently, Nationwide, Allstate, Mile Auto, and Metromile offer this kind of coverage.
See more details about pay-per-mile programs currently on the market in the table below.
|Insurance Companies||Low-Mileage Program Name||Device Used||Enrollment Discount (Maximum Possible % Savings)||Earned Savings (Maximum Possible % Savings)|
|Liberty Mutual/SafeCo||RightTrack||Mobile App or Plug-in||5%||30%|
|Progressive||Snapshot||Mobile App or Plug-in||average of $25||20%|
|Mile Auto||Mile Auto||Neither||N/A||40%|
|State Farm||Drive Safe & Save||Mobile App or Plug-in||5%||50%|
There are a lot of different pay-per-mile policy options for drivers to choose from when it comes to auto insurance. Working from home and saving money is a combo that just cannot be beat.
Just be mindful of what information the pay-per-mile trackers are collecting from you. Some companies only track the number of miles per month you drive. However, others will also look for how fast you drive, where you go, and other personal information.
Before signing your name on any dotted lines, make sure you are comfortable with all of the information you are sharing with the insurer. Read the fine print and never be afraid to ask customer service representatives questions about what the provider is tracking.
Metromile offers a well-rounded pay-per-mile program that is currently only available in Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington.
For a monthly base rate of $29, plus a few pennies per mile, you can be insured for a much lower rate than a traditional policy. Metromile claims low-mileage drivers can cut their rates in half by switching providers.
There is also a cap for how much you’ll be charged per month. That way, you’ll still be able to take that road trip you’ve been considering without getting stuck with a massive auto insurance bill.
Keep in mind that pay-per-mile insurance policies are relatively new, and are only just now starting to be available in most states.
You will need to speak with a licensed insurance agent in your area to find out if this type of auto insurance policy is available to you.
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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These days, working from home is becoming more and more normal.
Even auto insurance work from home policies are being implemented across the country, allowing many agents to telecommute. For example, there is currently a temporary Progressive work from home program in place.
If your company doesn’t currently have any telecommuters, you can professionally request a work from home schedule with your boss. You can suggest working from home on a trial basis so your supervisor and company can see that it won’t affect your productivity.
Be sure to mention how the company can benefit through reduced overhead, safer social distancing practices, and decreased carbon emissions. Some bosses respond well to data and factual evidence.
If your job is unable to commit to a full-time work from home schedule, you can talk to your boss about the possibility of telecommuting for just one or two days a week. You’d be surprised how many miles you can chop off of your annual average by staying home to work just one day out of the week.
If these suggestions do not convince your boss to let you work from home for at least a period of time, keep an eye out for other telecommuting employment opportunities. You might also consider biking to work or taking public transportation.
If remote work is simply not an option for you, just remember that driving fewer miles per year, in general, can lower your auto insurance rates and keep the mileage on your vehicles low. Just remember to keep your insurer accurately informed about your annual mileage so your insurance costs can be adjusted accordingly.
It may be possible to reduce your insurance rates during periods of unemployment. However, some companies increase rates subtly if you are unemployed or a stay-at-home parent.
Denver7 news reported about how one stay-at-home mother noticed her auto insurance quote increase after she informed a provider about her employment status. When she changed her occupation, her quote suddenly decreased.
As you can see, your employment status can change your insurance quotes. If you’re unemployed, consider comparing rates from companies that do not ask about your work status. Also, remember to inform your insurance agent that you drive less than average.
Even if you’re driving to and from job interviews, it’s likely you’re on the road less frequently than if you’re driving to and from work every day.
You can also talk to your insurance company to see if they’re willing to reduce your rates temporarily while you search for work. Better yet, try to find a job that will allow you to work from home and keep those lower rates permanently.
If you telecommute, make sure you’re getting the cheap auto insurance rates you deserve. You can either switch to a pay-per-mile insurance program or receive low-mileage discounts for a traditional policy.
There are a few things to keep in mind when considering auto insurance and work from home jobs:
Now that you know you could save some money by working from home. If telecommuting is an option for you, be sure to inform your insurance company so you can take advantage of the savings.
Do you still have questions about auto insurance rates when you telecommute? Read through these frequently asked questions to learn even more.
The answer to this depends on a number of factors, including your personal insurance needs, your age, where you live, and who else might be on your policy. However, comparing rates from the top auto insurance companies is a good place to start.
You can get quotes online to easily get started. Enter your ZIP code into one of our online tools to get telecommuting auto insurance quotes right now, or you can speak to insurance agents to find a policy that meets all of your needs.
The best way to find affordable auto insurance is to shop around and compare quotes. You should also do what you can to keep your rates low by driving safely, maintaining a clean driving history, and following the rules of the road.
Are you ready to buy telecommuting auto insurance?
Don’t wait to get the best telecommuting auto insurance rates. Simply enter your ZIP code into our FREE quote tool below to get started.
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