Telecommuting Insurance (Costs, Coverage, & Quotes)

If you are a remote worker looking for telecommuting insurance, you may be eligible for some low-mileage car insurance discount plans. Many car insurance companies offer usage-based car insurance and pay-per-mile insurance. Learn more about how to get a work-from-home car insurance discount to save up to 30% on your car insurance.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jul 1, 2021

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Here's what you need to know...

  • Remote workers can save up to 30% annually on their car insurance with some telecommuting insurance discounts.
  • Consider usage-based insurance and pay-per-mile insurance if you drive under the U.S. national average of 13,500 miles per year.
  • Usage-based insurance and pay-per-mile car insurance both use telematics devices to monitor mileage and driving habits.
  • Both low-risk driving and lower mileage help cut car insurance rates.

What is telecommuting insurance? Some car insurance companies offer work-from-home car insurance discounts for drivers who have low annual mileage. Working remotely has been on the rise in the United States over the past ten years, especially during the COVID-19 pandemic.

Many telecommuters wonder if they can get a work-from-home auto insurance discount. Some car insurance companies offer usage-based car insurance, where a low amount of annual mileage can qualify you for car insurance discounts.

Low mileage or usage-based discounts can save you up to 30% off your car insurance rates with some companies. It’s definitely worth investigating the types of telecommuting insurance coverage available to remote workers.

Find the best telecommuting car insurance rates today. Enter your ZIP code to compare free quotes from top insurance companies for affordable telecommuting car insurance.

Will my car insurance go down if I work from home?

Research done by the U.S. Department of Transportation’s Federal Highway Administration reports the average American drives approximately 13,500 miles per year. Cutting out commuting mileage could mean driving fewer miles per year.

You can probably reduce your car insurance premiums if you purchase work-from-home car insurance. Insurance companies base their premiums on risk, and your risk of an accident declines as the number of miles you drive a year decreases. Pay-as-you-drive and usage-based insurance are two types of programs drivers can choose to reduce their insurance premiums.

What is usage-based insurance?

Usage-based insurance programs record the number of miles driven and offer a lower rate on car insurance for remote workers who drive fewer miles each year. Nineteen major insurance companies currently offer usage-based insurance.

A growing number of insurers are offering more complex usage-based programs that also take driving behaviors into account. These programs use telematics devices to transmit information about your driving habits to the insurer. The devices can be installed into your car’s diagnostics port.

Telematics measure data such as how hard you brake, how fast you go, and how many miles you drive. Good drivers often qualify for increased discounts on their car insurance with telematics. Bear in mind that your driving history influences your car insurance premiums, so usage-based insurance costs may vary based on your driving record.

However, telematics devices may not be a great fit for every low-mileage driver. If you value privacy about your driving habits, you may not appreciate having a telematics device in your car. Some people are willing to give up personal information to secure a discount on their car insurance.

Some insurance companies give the driver a discount of five to 10% for enrolling in the program. Other companies assess the discount after an initial data tracking time period.

What is pay-per-mile insurance?

Pay-per-mile insurance is another type of usage-based car insurance that can reduce your car insurance premiums if you telecommute. Pay-per-mile insurance works just as it sounds. More insurance companies are beginning to offer pay-per-mile programs.

With pay-per-mile insurance, the insurance company charges a low monthly base fee plus a charge per mile. They will also likely require the use of a telematics device to record how many miles you drive and your driving style.

Pay-per-mile insurance costs can vary each month, depending upon how many miles you drive daily. Pay-per-mile policy costs are also affected by other factors including your age, where you live, and your driving record.

For example, Metromile is an insurance company that offers pay-per-mile insurance. A driver pays a monthly base from $29 and then pays a pennies per mile cost on top of the base rate. Metromile is currently offered in six states: AZ, CA, IL, NJ, OR, PA, VA, and WA.

Per-mile costs are charged only for the first 250 miles per day, or 150 miles per day in NJ. Taking a trip with high mileage will not blow up the monthly insurance cost because of the mileage cap.

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Does every insurance company offer low mileage discounts?

If you want to buy telecommuting car insurance, you should know that not every car insurance company offers low mileage discounts. You can save varying amounts with companies that do offer a work from home car insurance discount.

Most of the insurance companies who collect data using telemetrics devices say the data about your driving will only be used for discounts. Progressive and GEICO do not promise this and you can get a surcharge instead of a discount with their programs if you are not exhibiting safe driving.

The table below shows the types of discounts different car insurance companies offer in their low mileage programs.

Pay-Per-Mile Policy Details by Car Insurance Company
Insurance CompaniesLow-Mileage Program NameDevice UsedEnrollment Discount
(Maximum Possible % Savings)
Earned Savings
(Maximum Possible % Savings)
AAAAAADriveMobile App15%30%
AllstateDrivewiseMobile App10%30%
American FamilyKnowYourDrivePlug-in5%20%
EsuranceDriveSenseMobile App5%30%
Liberty Mutual/SafeCoRightTrackMobile App or Plug-in5%30%
MetLifeMy JourneyPlug-in10%30%
NationwideSmartRidePlug-in10%40%
ProgressiveSnapshotMobile App or Plug-inaverage of $2520%
Mile AutoMile AutoNeitherN/A40%
State FarmDrive Safe & SaveMobile App or Plug-in5%50%
The HartfordTrueLanePlug-in5%25%
TravelersIntelliDriveMobile App10%30%
MetromileMetromileMobile AppN/A60%

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As you can see, it’s important to shop around for telecommuting auto insurance quotes from multiple companies before you buy so you can guarantee you’re getting the right kind of coverage and the right price.

Is telecommuting insurance worth it?

If you work from home, you can purchase a usage-based policy or a pay-per-mile policy. Both will help reduce your car insurance rates if you drive a low number of miles each year.

As more companies allow employees to work from home or commute a few times a week, switching to a telecommuting insurance company may make sense to help you save on car insurance premiums.

Now that you know more about telecommuting insurance, enter your ZIP code below to compare free telecommuting car insurance quotes from top insurance companies in your neighborhood.

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