As many Americans are beginning to understand, there are several benefits and a few pitfalls of working from home. One of the biggest benefits is that you may be able to get a break on your auto insurance rates. Less time spent in the car during rush hour and less traffic on the roads overall mean that auto insurance providers are willing to consider discounts. The discounts and reductions may only be temporary until we return to work again, but are well worth the phone call it takes to get them.
Working More, Driving Less
It is easy to lose track of where work ends and life begins when your office, your kids’ classroom and your dining room are in fact the same room. So, if you permanently work from home, you may be working more, but on the upside, you are driving less. Give this information to your insurance provider, and you should get a discount on your rates. The size of the cut may differ across regions, however, changing your primary reason use of your vehicle to driving for pleasure only should help.
Change Your Deductible
Another way that you may be able to lower your auto insurance premiums is to increase your deductible. That’s the amount you would have to pay out of pocket if you make an insurance claim. Increasing the deductible means that your premiums will go down because the insurance company is on the hook to pay out less in the event of a claim. However, before you make this change, be sure that you are comfortable with the consequences of paying more should you get into an accident.
Change Your Level of Coverage
The recent changes to the no-fault auto insurance rules in Michigan mean that you now how a choice of how much liability coverage you want to carry. Reducing the amount of coverage will result in lower premiums. Again, put some thought into this one, as it could have a huge impact on you and your family if you were to need it.
Park a Vehicle, Permanently
If you have more than one vehicle, chances are that one of them is sitting mostly idle right now. While you are working from home, maybe you believe you can get by with just one vehicle for a while. Suspending the insurance on the vehicle you are not driving can save you a whole bunch of money that you could probably use elsewhere right now. Just find your car a nice cozy parking spot and don’t touch it until you reinstate the policy.
How Insurance Companies Are Adjusting
Once the country went into lockdown, the number of reported car accidents also decreased dramatically. That prompted some insurance companies to announce that they would pass their savings on to consumers who were struggling with paying their premiums. In most cases, you need to contact your provider to find out what they are offering.
As the country reopens and people get back to work, it is still going to be some time before we return to ‘normal’. Traffic patterns and driving habits are also likely to be different for a while, and insurance companies will have to adjust to it. Our best advice is to contact your insurance provider or an insurance broker to talk about your auto insurance policy and any changes that might be possible. We are here and ready to answer any and all questions.
