The Short of It

  • The term "telecommuting insurance" refers to the ability to save money on car insurance if you work from home.
  • Some car insurance companies will reduce rates for people who have shorter daily commutes.
  • Individuals who work from home may want to consider asking about low mileage discounts or pay-per-mile policies.

The COVID-19 pandemic pushed many companies to decide to have employees work from home.

If you're one of these employees, you may be wondering about telecommuting insurance and how working from home may affect your car insurance coverage.

Read more below to find out about your options for saving money on car insurance premiums with a reduced commute. Enter your ZIP code into our free quote comparison tool to find telecommuting insurance rates today.

What is telecommuting insurance?

Telecommuting insurance is not technically a type of insurance. Instead, it refers to a topic that many of us may be wondering about right now - reducing our car insurance premiums because of work-from-home jobs.

Some car insurance companies base premiums on commute length (including other factors, such as age, location, and driving record). Therefore, if you drive less than the average commute, you may reduce your rates.

Depending on the company, you may also be able to qualify for low mileage discounts.

You may also want to consider a pay-per-mile policy, which allows you to pay only a small base fee per month plus a small amount per mile that you drive.

You may need to use a tracking device on your vehicle for these types of plans. For example, Allstate pay-per-mile insurance (known as Milewise) requires using their Milewise device to monitor miles and driving behavior.

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How much does telecommuting insurance cost?

If you let your insurer know about your reduced commute length while you're working from home, you may see a reduction in your premiums. Let's look at the difference in premiums between two different commute lengths:

Average Annual Auto Insurance Rates by Commute Length
CompaniesAverage Annual Rates for 10 Miles Commute,
6,000 Annual Mileage
Average Annual Rates for 25 Miles Commute,
12,000 Annual Mileage
USAA$2,482.69$2,591.91
GEICO$3,162.64$3,267.37
State Farm$3,175.98$3,344.01
American Family$3,401.30$3,484.88
Nationwide$3,437.33$3,462.67
Progressive$4,030.02$4,041.01
Farmers$4,179.32$4,209.22
Travelers$4,399.85$4,469.96
Allstate$4,841.71$4,934.20
Liberty Mutual$5,995.27$6,151.63
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On average, you could see a 2.33 percent change in your premiums for a change in your commute length. However, this will vary by company.

Should I buy telecommuting insurance?

More companies are switching to long-term work from home opportunities, even when there isn't a pandemic. Therefore, you may want to be aware of the car insurance savings you could earn only by working from home.

If you don't want to switch policies (especially if your telecommuting situation is temporary), consider letting your insurance know about your temporary reduction in commute length and ask about low mileage discounts.

However, if you're permanently working from home, you may want to consider buying a pay-per-mile policy.

Working from home can significantly save you money on car insurance and transportation costs. It can also save your employer money on office space, as long as you have the appropriate remote work tools.

If you need help finding affordable telecommuting insurance quotes, enter your ZIP code into our free quote comparison tool below.