Thanks to an ongoing global pandemic, a record number of Americans are currently working from their homes. A solution that was implemented in 2020 in the early days of the outbreak– teleworking – is showing signs of becoming permanent for many workers.
There are good reasons employees like teleworking. It saves them commuting time and gas, and gives them more free time to exercise, spend time with family or devote attention to their homes. While there are some tradeoffs on costs – home-based workers are spending more on utilities and telecommunications – there are some significant benefits when it comes to driving. Telecommuters are using their vehicles far less often than they did pre-pandemic. This begs the question: are there auto insurance implications for home-workers? The answer is “yes.”
How Can Teleworking Affect Car Insurance?
One of the elements auto insurers use to determine policy costs is the number of miles the insured party puts on his or her vehicle. Since that mileage is drastically cut by eliminating the daily commute, it’s worth checking in with your insurance company to determine if the “new normal” in-vehicle usage could result in a change to premiums.
Why Might You Be Able to Get a Discount?
Less vehicle usage means less risk. Essentially, if your telecommuting status has cut your driving by 60 percent, you now have 60 percent less risk for a collision, and you’re reducing the wear and tear on your vehicle that could lead to claims. Many insurance companies offer low-mileage discounts that could save you as much as 18 percent on your vehicle insurance. For this reason, contacting your auto insurance provider immediately is worthwhile, and asking them about low mileage discounts. (Different companies will have different definitions of what constitutes (low mileage). Even if you still go to the office a few days a week, you may have reduced your driving enough to qualify for a discount.
Your insurance company may even offer programs that will allow you to pay insurance based on your usage of your vehicle. These programs include pay-per-mile rates, which means the insurance company charges you a low base rate and then an additional fee per mile you drive; or usage-based insurance, which put a device in your car or an app on your smartphone to track mileage, braking, speed, and other factors that can affect your risk factor. (If you’re a careful driver and drive very little, this type of program could work to your benefit financially.)
To be sure that your vehicle insurance policy premium isn’t’ overcharging you based on your driving, check-in with the company that holds your policy. In Connecticut, Petruzelo Insurance offers personal and business policies that fit your needs and protect your vehicle. Call us at 866-479-3327 or visit our website for more information.