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Telecommuting Auto Insurance: Work From Home and Save

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One of the benefits of telecommuting is that you completely eliminate your drive to work. Because you drive less when working from home, you will have plenty of savings opportunities. Some of the popular ways to take advantage of lower prices for telecommuting auto insurance include choosing a usage-based program or a pay-per-mile insurance that counts mileage. Some companies also offer low-mileage discounts, offering yet another way to save.

Our experts reviewed each major insurance provider to find the best car insurance companies in the industry. Use the quote box to take advantage of our research and easily compare free auto insurance quotes. When you enter your zip code, you will get free quotes from providers in your area.

Telecommuting Insurance Basics

Most people who work from home will drive less than the average person because they don’t need to commute. If this applies to you, then you can save on auto insurance depending on the company you choose to get a policy from and the method or type of policy you choose.

Drivers often manage to gain cheaper auto insurance by driving less and driving more safely, because insurers determine car insurance premiums based on risk. When you drive fewer miles, there is a lower risk of you getting into an accident. This results in lower miles.

Remember that every auto insurance company is different, so not all of them will offer the same opportunities or savings. That’s why it’s so important to compare rates.

You will also notice that no major insurance provider offers a “work from home” discount. However, they offer other ways you can save money as a result of working from home. Most of these tie into having low mileage.

To tell if you drive a low number of miles, compare your driving habits to the national average. The Federal Highway Administration reports an average mileage of 13,476 across age groups and genders.

Usage-Based Insurance

One of the options for saving money with telecommuting auto insurance is usage-based insurance. This type of insurance will typically use a mobile application or a device that you plug into your car to track your driving habits. They then give you discounts based on safety.

Mileage is just one of the various factors that these programs tend to track. They typically track mileage because, as mentioned earlier, it influences your level of risk. The result is that you can typically save money with these usage-based programs if your new telecommuting job means you drive a lot less.

One thing to keep in mind is that these programs will also track other safe driving behaviors, such as hard acceleration or braking. As such, they are a good option for safe drivers but not ideal for those who drive more aggressively.

The following are some of the programs that track mileage as part of their usage-based insurance.

  • State Farm Drive Safe & SaveTM: Savings often cap at 30%, but some discounts may even exceed this.
  • GEICO DriveEasy
  • Esurance DriveSense®
  • Nationwide SmartRide®: You can save up to 40% and receive an instant discount of 10% for signing up.
  • Progressive Snapshot®: The average discount is $156 per year, with an average savings of $47 just for signing up.
  • Farmers Signal®: You can receive up to $100 in rewards.
  • Liberty Mutual RightTrack®: You can save up to 30%.

Usage-based insurance is a great option for those who would struggle to afford regular full coverage car insurance.

Pay-Per-Mile Insurance

Opting for pay-per-mile insurance means that you will pay a low base rate every month, along with an extra fee per every mile that you drive.

This type of program is incredibly popular for people who do not drive a lot, including those with remote work. You can have significant savings if you drive very few miles. That is especially likely for people who telecommute, which makes this insurance type an appealing option.

Some of the pay-per-mile insurance programs you may want to consider include:

  • Nationwide SmartMiles®
  • Allstate Milewise®
  • Metromile

To give you an example of the potential savings from this type of policy, consider the example of a 35-year-old male with a clean driving history. With a traditional policy, he would pay $133 per month. With Nationwide SmartMiles however, he would pay a base rate of $35 plus $0.07 per mile. If he drove 500 miles in a month, this would lead to a $60 variable rate or $95 total.

Another example comes from Metromile. If a customer drives about 500 miles per month on average, they could save up to 47% per month or $741 per year.

Low-Mileage Discounts

Telecommuters can also choose to get their auto insurance from one of the providers that offer a discount for having low annual mileage.

Some of the companies that offer this type of discount include:

  • American Family
  • Safeco
  • USAA
  • PEMCO

If you choose one of these companies and want to take advantage of the low-mileage discount, then expect to need annual odometer readings as part of your insurance coverage.

Raise Your Deductible

If you are driving significantly less, you may also want to consider increasing your deductible for comprehensive insurance and collision insurance. Remember that when you raise your deductible, your monthly insurance premiums will drop. You can raise or lower your deductible at any time.

For someone who drives frequently or an average amount, raising the deductible could be a big financial risk, as you will have to pay more out of pocket if you make a claim. However, because your risk of an accident dramatically decreases when you drive less, this is a lower risk if you telecommute. Even if you work from home, however, always ensure that you can afford to pay your deductible if you have to.

You can also look for discounts unrelated to your mileage that you may be eligible for. For example, your insurance policy may have a discount for homeowners or a clean driving record.

Our Recommendations for Auto Insurance

Whether you telecommute or not, it’s smart to compare auto insurance costs before choosing a policy. This lets you ensure that you get the best coverage for the best price. The best way to compare free quotes is with a comparison tool, like our quote box, which just requires your zip code to start. This way, you don’t have to work with an insurance agent unless you want to.

We also encourage you to consider Progressive, USAA or State Farm, as these are the companies that performed best in our expert’s evaluations.

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Enter your zip code to shop for the best rates in your area:

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Progressive: Best for Accident-Prone Drivers

Progressive is our top suggestion for telecommute auto insurance, thanks to their Snapshot program. Progressive earned a 4.5 overall with strong scores for online experience and customer service.

Progressive stands out with its Snapshot® program, which is available in almost every state. This program saves drivers an average of $156 per year.

USAA: Best for Military

Our team awarded USAA an overall rating of 4.5 out of 5.0. This includes a 4.8 for both coverage and affordability.

USAA is notable for its discounts based on annual mileage. You can find the SafePilot usage-based policy from USAA. You may also look into Noblr, a USAA-owned company that provides usage-based coverage for low-mileage and safe drivers.

State Farm: Best Customer Experience

State Farm earned an overall rating of 4.6 out of 5.0. The company also earned a perfect 5.0 score in our industry standing and online experience categories.

State Farm’s usage-based insurance program is Drive Safe & SaveTM, and it is offered in nearly every state. It can let you save up to 30%.

FAQ: Telecommuting Auto Insurance

Do I get a discount on car insurance if I work from home?

Auto insurance companies do not offer a specific discount for working from home or telecommuting. However, there are other ways to save because you are driving less. Depending on your annual mileage, it may make sense to consider pay-per-mile insurance. You can also choose a company with a usage-based program, as these give discounts for low mileage and safe driving overall. Some insurers like USAA also offer low-mileage discounts.

Does working from home affect car insurance?

Working from home does not directly affect car insurance. However, the fact that you drive fewer miles gives you plenty of ways to lower your rates. Depending on your policy, you may be eligible for usage-based discounts or low-mileage discounts. You may also want to consider a pay-per-mile policy as a way to save.

Does Geico give discounts for working from home?

No, GEICO does not give a specific discount for drivers who work from home. However, GEICO does offer DriveEasy in many states. This is a usage-based discount that gives you a discount for low mileage. Keep in mind that it also tracks other safe driving habits, so aggressive driving may minimize or cancel out that discount.

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