Sill work remotely? How To Save On Your Automobile Insurance Premium – The Motley Idiot
As the pandemic continues, some workers have remained in a home working situation. This situation has brought several benefits, including no stressful commuting, fewer distractions from coworkers, and the ability to wear more comfortable clothing throughout the day.
Remote workers can also save money in a number of ways, including car insurance costs. Read on to see how you can cut your policy costs by driving a lot less.
How to save on your car insurance as a teleworker
If you are currently working remotely, now is a good time to check out your auto insurance coverage.
Your annual mileage is included in the insurance tariff that you pay. If you drive many miles each year, your rate will be higher as you use your car more often, which increases the risk. If you drive very little, there is less risk of an accident so your rate will be lower.
If you are still working remotely, it is a good idea to contact your auto insurance company and adapt your policy to your current driving situation. A quick call to your insurer is all it takes.
For example, if you used to commute 12,000 miles or more per year and now drive less than 6,000 miles per year because you work full-time at home and run errands occasionally, that lifestyle change should impact your rate. Contact your auto insurer to update your policy and see how much money you could save.
Other ways to save car insurance costs
There may be other ways you can reduce your auto insurance costs. Some adjustments can lower your interest rate and allow you to put more money into your savings account. Here are some ways to lower your car insurance rates:
- Pay attention to the type of car you drive. The make and model of your car will affect your price. If a car has a lot of safety features, it may be cheaper to insure it. Car repair costs can also affect insurance rates. If you are looking for a replacement vehicle, choosing the right vehicle can potentially save you on insurance. Get insurance quotes before buying your next car.
- Adjust your deductible. If you set a lower deductible, your policy will cost more. You must pay your deductible before your insurer pays your claim. Choosing a higher deductible for car insurance – for example, USD 1,000 instead of USD 500 – will lower your premium costs. However, make sure that you set aside enough cash to cover the deductible in a savings account first. So you are prepared in the event of an accident.
- Drive safely and stay accident-free. Car insurance increases after an accident. So drive as carefully as possible. Drivers with no accidents on their driver's license pay lower insurance rates than those who do. One auto insurer, Progressive, notes that a driver who had no accidents or tickets in the past three years could pay an insurance price that is, on average, 31% lower than a driver who has had accidents and violations during that period.
- Shop around for the cover. Not all car insurers charge the same rates. Comparing policy rates with multiple insurance companies can result in significant savings. It's best to do this every year to ensure that the plan you paid for is still the cheapest option available.
And for more ideas, check out other ways to save on your auto insurance.
If you're a teleworker who hasn't looked at your auto insurance in years, take the time to contact your insurer and update your policy to reflect your current lifestyle and driving habits. You may be able to pay less if you drive a lot less.