How to Save on Car Insurance When You Work from Home

Working from home? You could be eligible for discounts on your car insurance. Here’s how to save with a hybrid or WFH schedule.
Written by Jaya Anandjit
Reviewed by Bellina Gaskey
Working from home can save you tons of money at the gas pump, and if you opt for pay-per-mile or usage-based insurance or qualify for a low-mileage discount, you could also cut down on your
car insurance
While the Covid-19 pandemic didn’t have many upsides, one of most appreciable changes to society as we know it came in the form of normalized hybrid work schedules and work from home (WFH) integration.
Career-commuters throughout the country were pleasantly rewarded with work schedules that not only saved them time traveling to and from work, but also cut the costs of filling up their tanks after a long week of driving. 
Now, most companies have solidified standard hybrid and WFH schedules, and if you’re lucky enough to have a short work commute from your bed to your at-home desk, you could be eligible for a cheaper car insurance plan that could save you hundreds of dollars a year. Let’s talk about how that could work.
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Does your car insurance change if you work from home?

It doesn’t matter which insurance company you choose—your provider will reward you for driving habits that decrease the risk of an accident, and that includes driving less. 
Insurance providers assign designations to each car they insure, and while your car may have been a “commuter” pre-pandemic, it may now be a “pleasure” vehicle since you no longer use it to get to and from work. 
That said, your insurance provider will not know that your work circumstances or driving habits have changed unless you tell them, and this could be the first step to earning some well deserved discounts on your insurance rate. 
Whether you’re switching your insurance type, lowering the annual mileage on your plan, or searching for discounts and coverage alterations that could lower your rate—here are a few ways you can save on car insurance if you work from home.

How to save money on car insurance while working from home

Navigating car insurance can be tricky, especially if you’re unsure what type of coverage you require for your specific driving needs. But when it comes to working from home, those needs may be a lot different than if you were commuting to work every day. 
Lowering your rate as a remote employee can be as easy as selecting a new insurance plan like pay-per-mile insurance or signing up for usage-based insurance. You could also change your driving designation and opt for a low-mileage discount or consider lowering your coverage.
Alongside a different plan, additional discounts, and removing coverages, you could also increase your deductibles to get a lower rate. If your rate doesn’t go down enough after working through the options with your current provider, you could always shop around and switch to a different company! But first, here are a couple things to consider as an at-home worker looking for a lower insurance rate.

Ask about pay-per-mile insurance

Pay-per-mile insurance is a great option if you work from home. With a pay-per-mile plan, drivers receive a monthly base rate and a pay-per-mile rate. Your monthly base rate is determined based on your age, location, and driving history, while your mileage rate could be as little as a few cents per mile. 
Pay-per-mile insurance plans are usually available to drivers who commute less than 8,000 to 10,000 miles a year, but if you drive more than that, this type of insurance may not benefit you much. In fact, if you drive more than 10,000 miles a year, your pay-per-mile monthly rate may be higher than a regular insurance plan.
Keep in mind not all insurance providers calculate base and per-mile rates the same, so your exact costs will vary from company to company. For more details, ask your provider and be sure to shop around before committing!

Enroll in usage-based insurance

With tech advances coming left and right, usage-based insurance is now more popular than ever before. In the more recent years, most car insurance companies have adopted usage-based plans or discounts that track and monitor your driving habits to dictate your rate
Usage-based insurance uses tracking or telematics devices to detect safe or risky driving behaviors. Sudden braking, speeding, or failure to adhere to traffic laws are all monitored—usually through a smartphone app—and can impact your rate. 
In most cases, insurance companies offer a usage-based discount for customers who download and enable their tracking app throughout each drive. You can save up to 30% on your car insurance plan if you enroll in usage-based monitoring and maintain a clean track, and this can be especially easy for WFH drivers who aren’t frequently on the road. The less you drive, the less you’re at risk of engaging in driving habits that could negatively impact your rate. 
Reach out to your insurance provider and ask how to get started with usage-based insurance.

See if you qualify for discounts

Pay-per-mile and usage-based insurance can be great options if you work from home, but they aren’t for everybody. Paying per mile can be just as expensive as paying a regular premium, and using a driving-tracking device may be out of your comfort zone. 
The last thing you need is to feel too restricted by your car insurance plan, and thankfully, there are a few discount options that could lower your rate without the added hassle. Here are some favorable alternatives: 
  • Low mileage discount: most car insurance providers offer lower rates to drivers who are designated as low-mileage drivers, or “pleasure” drivers. Companies typically offer this discount for drivers with an average annual mileage of 6,000 to 7,500 miles.
  • Clean record discount: infrequent drivers tend to keep fairly
    clean driving records
    , and if this applies to you, you could benefit from continuous savings if you keep your record spotless while you work from home. 
  • Affiliation discount: your employer may deserve a double pat on the back for granting you a WFH schedule and making you eligible for an affiliation discount (like if you’re registered with an employment or alumni association). Check with your provider to see if your workplace memberships qualify you for a discount. 
  • Multi-policy or multi-car discount: bundling your property and auto insurance or adding more than one vehicle to your policy can result in a loyalty discount from most providers.
  • Car safety and anti-theft discount: your vehicle's safety and anti-theft features can grant you a discount by increasing protection and decreasing the chances of theft.
  • Good credit score discount: another thing that may have changed throughout the pandemic is your credit score. If you think your score has gone up over the years, you could receive a discount for exemplifying responsibility and low riskiness. 
MORE: How to get car insurance discounts

Consider changing your coverage level

If you used to drive to work everyday, you may have opted for what’s commonly called a “
full-coverage insurance
plan” with add-ons like
coverage, roadside assistance, or rental reimbursement insurance. While these additional services can be a huge bonus for frequent drivers, they may not all be necessary if you work from home. 
For example, if your vehicle remains parked throughout the workday, comprehensive coverage is still worth keeping, as it covers repairs or replacements caused by things like weather conditions, vandalism, or theft. Alternatively, collision coverage handles fixes for accidents involving another vehicle or object, which are unlikely if you aren’t a routine driver. 
Towing and labor coverage
or a
rental car reimbursement
after a covered claim may be helpful if you’re in an accident, but the less you drive, the less likely you are to file a claim. 
If you’re looking for a better rate as a WFH infrequent driver, consider lowering your coverage levels or removing certain services altogether. Just be warned that if you do get into an accident when taking a drive, you’ll have to foot your repair bills if you don’t have the appropriate coverage in place. 
Key Takeaway Consider switching to pay-per-mile insurance, take advantage of usage-based discounts, or lower your coverage amount to save on car insurance as a work-from-home driver. Always consult with an insurance agent before making big changes to your policy. 

Increase your deductible

The more you work from home, the less you drive, and the less you drive, the less you’re at risk of an accident. If this is the case for you, it may be wise to consider increasing your car insurance deductibles.
Your deductible represents the out-of-pocket cost you’ll be responsible for if your vehicle needs repairs or replacements. 
For example, let’s say you got into an accident that resulted in $2,000 in damages, and your deductible is $500. This means that you’ll pay $500 out of your pocket and your provider will source the remaining $1,500.
Let’s say you increase your deductible to $1,000. This could lower your rate since it takes some of the financial responsibility off of your insurance provider.
Lowering your deductible can significantly reduce your insurance rate, but be aware that you will have to bear the burden of a higher repair or replacement bill if an accident occurs. 

Shop for a lower rate

Not every car insurance company will reward you for working from home, and in some cases, your current provider may be the least appreciative of all. If tracking your mileage and driving, discounts, or a higher deductible don’t do your rate justice, it may be wise to shop around. 
Best practices for securing a lower rate include looking into at least three different companies to
gather quotes online
. Different providers use different formulas to determine your rate, meaning that you’ll usually have different payment options for the same coverage with different companies.

Best insurance companies for remote workers

Ready to find an insurance rate that accurately reflects your driving habits as a WFH employee? Here’s a list of providers that offer notable perks for remote workers: 
Insurance Provider
Low-mileage discount
Pay-per-mile insurance
Usage-based insurance
State Farm
Liberty Mutual
American Family
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