Working From Home? Here’s How You Can Save Money on Your Auto Insurance
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Remote work has become the norm and requires modern workers to adapt to this work setup. Many may not have considered that their home and auto insurance premiums might need to be adjusted to accommodate remote work.
You may want to switch your homeowners’ insurance policy, especially if you run your own business remotely. If you aren’t commuting to work, your car insurance policy could also be due for a change.
Let’s look at some ways you can save money on your telecommuting auto insurance since you work from home, and we’ll discuss how you can find the cheapest rate for both home and car insurance.
Ways to Save on Car Insurance When You Work From Home
Working from home has some great perks: You don’t have to commute anywhere, you can work on your mental and physical health, and you can save money on car insurance. Below, we will look at three crucial ways to save on car insurance when you work from home.
Switch to a Pay-Per-Mile Program With Your Provider
Some major insurance providers like Allstate, Nationwide, and even Progressive are offering pay-per-mile insurance programs. With this program, you are given a base rate to pay and then are charged extra, depending on the number of miles you drive per month.
Pay-per-mile is a great program to be part of because you save a substantial amount of money each month just from working at home. Many base rates start at $20 per month and usually charge just a few cents per mile.
(Note: The base rate is dependent on the driver, including the driver’s record, age, vehicle, and so forth.)
Look out for Telecommuting and Lower Mileage Discounts
Telecommuting discounts and low mileage discounts are available for those that work from home by major insurance providers. GEICO, USAA, Liberty Mutual, and State Farm are a few providers that give discounts for driving less.
Insurance companies reward drivers who drive less because they are less likely to get into car accidents. Discount percentages can range from 10% to 30% off your insurance rate, depending on the provider you choose. Check with your provider or insurance agent and see if you qualify for this discount.
Some do not offer discounts for telecommuting, but the larger insurance providers do for the most part. If you get insurance from 21st Century or SafeAuto, though, you more than likely won’t get a discount.
Saving on auto insurance is essential when you’re working from home. You don’t need as much coverage as you would if you were commuting to work every day.
(Note: Collision coverage is still good just in case you get into an accident. Comprehensive coverage is also nice to have for when your car is parked in front of your house or the driveway.)
Cheaper Rates for Home and Car Insurance
There are four main ways to lower your home and car insurance rates more than average: bundling everything, growing your credit score, preparing your home for disaster, and keeping a clean driving record. Below, we will look at each way in depth.
Bundle Everything
Providers love having you as a customer for multiple policies. Consider bundling home and auto insurance. If you can, bundle other insurance policies as well. You will get substantial discounts from that alone. Contact your insurance agent or go online to your provider’s website to see how many policies you bundle.
Grow Your Credit Score
Growing your credit score is an excellent way to get lower insurance rates for homeowners and car insurance. There are a few ways you can increase your credit score, too:
- Pay your bills on schedule – Doing this will help your insurance provider be more inclined to lower your insurance rates because paying your bills on time shows that you are responsible and diligent with paying.
- Repay any outstanding debts you may have – Outstanding debt could be late bills, student loans, or personal loans. Paying these off will significantly improve your credit score.
- Maintain old credit cards – When you keep credit cards that are paid off, this raises your credit score slowly but surely. This also shows providers that you can consistently pay your monthly premiums.
Prepare Your Home for Disaster
Preparing your home for disaster is a surefire way of getting lower premiums on homeowners insurance. Getting storm shutters, strengthening the tiles on your roof, and adding home security are the best ways to prepare your home.
Be sure to talk with your agent about ways you can stormproof your home and be ready for whatever may happen.
Keep a Clean Driving Record
Having a clean driving record is a very effective way to keep your rates low for auto insurance. When you have multiple violations on your record, this shows providers that you are a high-risk driver and more prone to accidents and reckless driving habits.
Sometimes, if your driving record is so bad and your reckless driving habits are out of control, insurance providers will cancel your policy. They see you as not worth the risk of insuring. That’s a scary place to be, but you needn’t worry as long as you abide by the laws in your state and drive defensively.
No Place Like Home
There’s nothing like working from home. It’s important to have a routine and organization as you work. Make sure you wake up at a certain time and establish habits that will help you increase your productivity.
You can save money on home and auto insurance too. You should know by now about the discounts and programs you can get from just working from home. Make sure to do your research about your insurance providers and what savings or programs they have available.
As telecommuting is becoming the norm during this pandemic, there will be more providers that will be open to programs like pay-per-mile and to giving their customers better savings and lower rates.
About Author:
Peyton Leonard writes and researches for the auto insurance comparison site, AutoInsurance.org. Peyton loves working from home and helping others adjust to working from home as well.
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