Working from Home and How It Affects Your Car Insurance Premium

When you work from home and reduce your annual mileage, you may notice a decreasing trend in your car insurance premium. However, the extent of the reduction varies between insurance companies and can depend on several factors.

General Trends

Typically, the less you use a vehicle, the cheaper your insurance might be. This means that if you commute less or primarily use a vehicle for leisure, you could see a decrease in your car insurance premium. The exact amount of reduction can vary significantly depending on the policies of your insurance company.

Personal Experience and Rebates

Over the years, I have been working from home, which has resulted in a very low annual mileage. Because of this, I have received rebates from my insurance company. Even if you don't commute, your insurance premium may decrease as a result of reduced annual mileage.

Special Considerations in the USA

In the United States, you can have your car rated as a pleasure car instead of a daily commuter. This change can result in a savings of around 15 dollars a year. It is worth consulting your insurance company to see if this applies to your situation.

Insurance Company Policies and Financial Impact

Most insurance companies base their rates on yearly statistics. During the COVID-19 pandemic, some companies have given refunds or reductions in premiums, while others have not. If your insurer is monitoring your driving through an app, you may not see savings until your next renewal. On the other hand, my mother’s insurer has refunded 120 dollars to her without her having to do anything.

Actionable Steps to Reduce Your Car Insurance Premium

Call your insurance company and inquire about the possibility of changing your use from 'commuter' to 'pleasure' use. This could save you around 10 dollars.

If you have two cars and only use one for routine errands, you can drop the collision coverage on the other car temporarily. This can also help reduce your premium.

Shop your insurance with an independent broker who represents 10 to 15 different insurance companies. They can provide you with multiple quotes and professional advice on how to save money on car insurance.

Remember, the best course of action is to contact an independent insurance agent to get a personalized quote based on your specific circumstances. They can help you navigate the details and find the best savings for you.