3 Ways That You Can Reduce Your Monthly Car Insurance Premiums When You Work From Home

One of the best benefits of working from home full-time is that you no longer need to commute to the office. You'll use less gas and reduce the amount of wear and tear that you place on your car, helping you save money on repair costs.

An additional way that you can save money when you're working from home is to change your car insurance coverage to reduce your premiums. To learn three ways that you can save money on your car insurance when you work remotely, read on.

1. Ask Your Insurer About Low-Mileage Plans

Many auto insurance carriers offer low-mileage plans. These plans are designed for people who don't drive to work, like people who work from home or are retired. When you don't drive very often, you're less of a risk to your car insurance carrier. You don't spend as much time on the road, so there's less chance of you getting into an accident and filing an insurance claim.

Due to the decreased risk, switching to a low-mileage car insurance plan allows you to reduce your monthly premiums. Contact your auto insurance agent and tell them how many miles you drive in the average month to see if you qualify for this type of plan.

2. Reduce Your Coverage Amounts on Collision and Comprehensive Insurance

You can reduce your monthly auto insurance premiums by reducing your coverage limits for comprehensive and collision coverage. Collision coverage pays for repairs to your vehicle if it's in an accident, and comprehensive coverage pays for repairs or replacement if your car is damaged by a natural disaster like a fire or is stolen.

Both types of coverage are very important to carry if you commute to work since they'll help you quickly repair your car or purchase a new one if your car is damaged or destroyed. If you're not able to get to work because your car is damaged and you can't replace it, you may lose your job. If you work remotely, however, then carrying this form of coverage is less vital. You're not reliant on your car in order to earn an income. You can lower your monthly premiums by reducing your coverage limits.

3. Switch to a Usage-Based Plan That Records Your Monthly Mileage

When you don't commute to work every day, you may be able to save money by switching to a usage-based insurance plan. For this type of plan, the insurance carrier will install a monitor on your vehicle or give you a smartphone app to download that needs to be on when you're driving your car. Your insurance company will record the number of miles you drive each month and charge you a monthly premium based on your mileage. When you work from home and don't put very many miles on your car because of the lack of commute, usage-based car insurance can save you a significant amount of money.

Overall, saving money on your car insurance when you work remotely involves making sure the insurance company knows that you don't commute to work every day, whether it's by switching to a low-mileage plan or a usage-based plan. Reducing coverage amounts for comprehensive and collision coverage can help you save even more money on your monthly premiums. If your current insurer doesn't offer low-mileage plans or usage-based plans, shop around for a new one that does.