When the Covid-19 pandemic struck in late 2019, no one could precisely project its expected impacts over a couple of months to follow. However, as it is right now, millions of people are currently working from home and utilizing Zoom, Google Meet, and other platforms. This brings with it a few perks, including the comfort of wearing clothes of your own liking.
Still, there is a more considerable advantage, especially regarding your auto insurance. You can save a few pence with your car coverage now that you are not commuting. This article is your informant and helps you learn a few hacks to help you save money with auto insurance while in the work-from-home workforce.
- Give a second thought to the car you own
Your car’s type, model, condition, and safety issues will always reflect on your insurance. Now that you are no longer commuting and are entirely working from home, you have the right opportunity to pay attention to your car.
A car with many issues can be easily insured, but the repair costs will ultimately reflect in your insurance rates. Therefore, get to the market and get a car whose model, brand, and condition will enable you to save a few bucks from insurance.
- Cut down on your annual average mileage
Your annual average mileage also affects your insurance payments, and cutting it down is definitely a good hack that allows you to save some pennies. Start by checking your odometer to know how many miles you have covered since you owned the car and using the information to calculate your annual average mileage.
A 2018 survey showed that several insurance companies reduced the premiums when clients cut down on average mileage. So if you belong to such companies, you will be able to save money from auto insurance.
- Try adjusting your car’s deductibles
Adjusting your car’s deductibles is definitely a tip that will help you save money with cheap auto insurance while working from home. While a lower deductible may sound ideal, higher ones generally help you get lower premium costs.
For instance, if your current car deductible is $500, you could adjust it to $1000 and may end up having your premium costs. So in good books, a savings account saves $1000 to ensure that everything remains in its proper perspective even if you get involved in an accident.
- Inquire about company discounts and see if you qualify for any
Ensuring your properties with a company for a long time makes you eligible for the discounts offered by the company. Now that you are working from home, it is time for you to call your insurance company and see whether you qualify for any of these discounts. For instance, you can inquire about loyalty, payment option, multiple-policy, multiple-car, group affiliation, anti-theft device, paperless, good rating. And car safety device discounts, and establish whether you can get any. You may be fortunate enough to land one or more of these discounts, ultimately boosting your savings.
- Practice safe driving and ensure that you are accident-free
From the previous point, you realize that the discounts include one for safe driving. Therefore, while working from home, try to remain accident-free and drive safely whenever you have to. This effort will ultimately reflect on your policy rates, which could be lowered in your favor. For instance, Progressive, one auto insurer, awards clients 31% off their policy rates if they remain accident-free within a three-year timeframe. Of course, various companies have varying policies, but safe driving will definitely pay off.
- Compare the policy rates by varying companies
The same product would attract different costs from one dealer to another. Other auto insurance providers offer different policy rates. While working from home, you can shop around and compare the coverages, especially using free auto insurance comparison tools like CarInsurance.net.
In fact, aim to do an end-year survey to ensure that your car policy rates are the most affordable around so far. This is also the time for you to change from one insurer to the other, especially if you get better deals elsewhere.
- Sign up for usage-based insurance programs
You can save more while working from home by enrolling in usage-based insurance programs. Such provisions focus on and monitor various factors, which translates to offs when you meet them.
For instance, IntelliDrive offers clients 20% for consistent driving, while State Farm gives users 30% off through its Drive Safe & Save program. Some companies are also concerned about saving the planet, and reduced driving, like when you are home most of the time, translates to offs.
- Cut down on or reduce optional coverages
Whenever you are acquiring a new car, you have the option to choose full coverage or go for multiple optional coverages. The latter may seem like a better option for minimizing premiums at first. However, it turns out expensive in the long run, which is why you need to cut out such optional coverages or reduce them completely.
For instance, coverage upgrades, collision, comprehensive coverage, or rental and reimbursement policies may result in several perks, including cash backs, but are expensive in the long term. Review each of these and find out whether these optional coverages are still ideal, especially with your new norm, which involves working from home and does not require a lot of traveling. You may be surprised at how much this can help you save.
- Initiate the change as soon as possible
After reviewing your auto insurance policy based on the above suggestions, you might realize that you need to change a few things. The last point encourages you to initiate the change as soon as possible, provided general and individual circumstances allow you to. You can do this online through the chatbox, email, or community group, or through your phone by calling their helpline.
The bottom line
With the new norm of working from home, you can now save money with auto insurance. There are several ways to do this and as the months go by, find which of the options here discussed to find your best fit. You may be surprised at how much your auto insurance savings can amount to.
Rose Rosie is a writer for the personal finance website, Joy Wallet, which provides readers with useful information, resources, and tools to help maximize their financial fitness.