How Commuting To Work Affects Your Insurance Premium

The American commute is changing. While the end of the COVID-19 pandemic brought commuters back to the road, nearly 14 percent of Americans still telecommute to work, according to the U.S. Census Bureau. And for those who do drive to work, the average commute is getting longer. Bankrate’s insurance editorial team looked into the changing landscape of U.S. commuter life to consider the insurance implications of your commute — whether it’s from the suburbs to the city or from your bedroom to your home office.

Commuting statistics

How does commuting to work affect my car insurance? 

Among the factors that insurance companies look at when issuing quotes for auto insurance is vehicle use — how and how often you drive your insured car. 

A car that’s used for a daily commute carries a higher risk of accidents and claims than a car that’s only driven occasionally for pleasure. You may also carry a lower level of risk if you work a hybrid schedule and commute just a few days a week, or if you use public transit or alternative modes of transport (such as a bicycle) to get to work. 

When you shop for auto insurance, you’ll likely be asked to estimate your annual mileage. If your commuting schedule results in an estimated annual mileage well below the national average, your insurance could be impacted in the following ways: 

• You could get a lower rate: Because less time on the road means less opportunity for accidents, a low annual mileage could put you in a more favorable rating tier and earn you a lower premium on auto insurance. Keep in mind, though, that you may need to provide odometer proof in order to qualify.
• You might qualify for pay-per-mile insurance: Some insurance companies offer pay-per-mile programs that allow you to pay a low monthly or daily base rate along with a certain amount for each mile you drive on the days you do drive. If you have a light hybrid schedule with a short, infrequent commute, this could be a good option.
• You may need less coverage: If you only drive your car infrequently, it might be worth reviewing your coverage with a licensed agent to see if you’re paying for anything you don’t need. While you’ll need to meet your state’s minimum car insurance requirement, a car that’s driven daily may have greater coverage needs than one you only turn on once a week. 

Do I have to tell my insurer if my commute changes?

Because your commute can be a factor in how your insurance policy is priced, it’s worth bringing up any significant changes to your insurance agent. 

For example, if you recently started working from home and expect your annual mileage to drop significantly, you may want to inform your insurance company to see if your rate can be lowered to reflect your reduced risk. Conversely, if you’re returning to full-time in-person work and expect your mileage to increase, it’s worth notifying your insurer. Your rate could go up, but communicating with your insurer about this change may help you to avoid a claim being dropped if your insurer finds out that you misrepresented important information about the vehicle’s use. 

How to plan for your commute

Data from the Census Bureau’s American Community Survey shows commute times climbing in the wake of the pandemic, with as many as 8.9 percent of U.S. workers traveling over an hour each way to and from work. To help prepare for your commute, consider the following tips: 

• Plan ahead: Give yourself extra time on your way to work to allow for unpredictable delays. This time buffer can help to reduce stress and lower your risk of engaging in unsafe driving behaviors like speeding.
• Monitor your stress: Whether it’s traffic, your boss or your personal life, stress on the road can lead to poor judgment and costly outcomes. Stay present and self-aware when driving to avoid letting a bad mood negatively influence your driving.
• Keep your options open: Post-pandemic, many Americans are questioning the commute. If you’re interested in remote or hybrid work or open to alternative transport options like carpooling, walking, biking or using public transit, you might be able to reduce your overall car ownership expenses, including fuel and insurance. 

Frequently asked questions

• Will getting a new car increase my car insurance premium?
  

  If you’re commuting to work again, you might be considering a new vehicle to make your journey more comfortable or efficient. Buying a new car will likely impact your insurance premiums. Newer cars are typically more valuable and have more complex components. These factors may make your vehicle more expensive to repair after a covered claim, increasing your premium. On the other hand, newer vehicles with updated safety features may be eligible for safety discounts with some carriers. Comparing quotes for any vehicles you’re considering is likely the best way to determine how your premium might change with a new car.

• Do I need to tell my insurance company that I’m going back to the office?
  

  Most insurance companies ask questions about vehicle use and mileage during the quoting process. If your vehicle use or mileage has changed, it may be in your best interest to inform your insurance company. If you’re going back to the office, it may also be a good time to compare car insurance quotes and see if you’re getting the best rate for your driving habits and coverage needs.

• Do commuters pay more for car insurance?
  

  Regular commuters may pay a higher average rate for auto insurance compared to vehicle owners who only use their car occasionally for pleasure. However, vehicle use may be less important than other rating factors such as age, driving record and credit history.