Many car insurance companies temporarily reduced their rates in the wake of the COVID-19 pandemic and the resulting lockdown. The business case for these premium reductions was clear enough; with less driving, the rate of car accidents dropped sharply, with fewer claims and less money coming out of the corporate coffers.
These rate reductions took many forms, from electronic credits to physical checks in mailboxes. But what they all had in common was their temporary nature; as the world began to open up and driving patterns returned to normal, premiums began to rise yet again.
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Wouldn’t it be nice if you could retain those lower car insurance premiums all year long? How would a reduction in the amount you pay impact other parts of your household budget? If you are working from home, you may be able to make those temporary premium deductions a permanent way of life.
The Hidden Cost of the Daily Commute
You already know that commuting costs a lot of money, from the price of gasoline at the pump to the added wear and tear on the family car. But there is a hidden cost of commuting as well, one that is reflected in your car insurance premiums.
Automobile insurance premiums are based in part on geography, including where you live and where you travel. Now that your workplace and home are one and the same, you may be able to significantly reduce the price you pay for the insurance coverage you need.
Fewer Miles Driven Means a Lower Premium for You
Another major factor in determining car insurance rates is how many miles you drive back and forth to work. The length of the daily commute is a huge determinant of car insurance rates, and reducing that number to zero could mean significant savings for you and your household.
Working from home will likely mean fewer miles driven overall as well. You will still be running the usual errands of course, although the recent spike in online shopping could become a permanent way of life as well. Once you see how many fewer miles you are driving, you may be pleasantly surprised.
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The recent changes in the way people work, shop and travel could have a huge impact on the car insurance industry, and on the drivers who rely on the protections it provides. As the workplace comes home and shopping is done on computers and smartphones, drivers could be in for a pleasant surprise, but only if they let their insurance companies know about the changes.
When you first applied for your car insurance coverage, you gave the agent information about your driving habits, including the number of miles you covered just getting back and forth to work. If you are now working at home and will be for the foreseeable future, a simple call to your car insurer could save you hundreds of dollars. Chances are you have better things to do with that money, and all it takes is one quick call.