Telecommuting Auto Insurance Coverage

Telecommuting car insurance refers to usage-based insurance and pay-per-mile insurance programs, like Allstate Pay Per Mile and Progressive Work from Home. It also includes low-mileage discounts. These kinds of policies and discounts calculate your monthly premium by how many miles you drive. Telecommuters who don't drive on a daily basis can save money by switching.

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 16, 2021

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  • Telecommuting insurance refers to usage-based or pay-per-mile insurance programs
  • Most major insurance providers offer these programs or some kind of low-mileage discount
  • It’s rarely a smart idea to cancel your insurance even if you work from home and don’t drive every day

Telecommuting, or working remotely from home, has grown in popularity over the years. It helps both the employer and the employee to save time, money, and effort.

And thanks to the COVID-19 pandemic, the number of companies allowing their employees to work from home has skyrocketed.

One of the perks you might not already know about telecommuting is that it can actually save you money on your auto insurance. After all, you aren’t driving to and from work 5 days a week.

Before you read, enter your ZIP code to start looking for the most affordable telecommuting car insurance quotes.

What is telecommuting insurance?

“Telecommuting insurance” is a bit of a misnomer. As of yet, there isn’t any insurance specifically designed for telecommuters, or any insurance policy where telecommuting is a requirement.

When we say telecommuting car insurance, what we’re really referring to is usage-based insurance or pay-per-mile insurance.

According to the Insurance Information Institute, many major private insurance providers offer some kind of UBI program or low-mileage discount.

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What is pay-per-mile auto insurance?

Usage-based insurance (UBI), also known as pay-per-mile insurance, is auto insurance that charges you based on how much you drive. Progressive Work from Home and Allstate Pay Per Mile are two of the most popular “telecommuting” insurance policies.

Rather than having a high monthly premium, these types of programs track how many miles you drive, and base rates on that number. Some policies may charge a certain amount per mile, or charge certain amounts per range of miles.

Basically, the less you drive, the more you save!

Do you need auto insurance if you telecommute?

When you work from home, it can be tempting to think of cutting out car insurance costs altogether. After all, you aren’t driving on a regular basis.

But canceling your policy can cost you a lot more in the long run.

Firstly, canceling your insurance creates a lapse in your coverage history. Future insurance providers will see this lapse when they look at your records. They may charge you higher rates for this because it’s considered “risky behavior.”

Secondly, just because you aren’t driving to work doesn’t mean you won’t need to drive anywhere else. In-office meetings, lunch breaks, grocery runs, and even just hanging out with friends may require you to drive somewhere.

All 50 states have some kind of state minimum liability insurance requirement. There are some pretty hefty penalties if you’re caught driving with less than these requirements, or without insurance altogether.

How much can I save on auto insurance if I telecommute?

So you definitely want auto insurance even if you’re telecommuting. But you want to save as much as possible since you won’t be driving every single day.

How much can you really save by driving less?

Average Annual Auto Insurance Rates by Commute Length
CompanyAverage Annual Rates for 10 Miles Commute,
6,000 Annual Mileage
Average Annual Rates for 25 Miles Commute,
12,000 Annual Mileage
State Farm$3,175.98$3,344.01
American Family$3,401.30$3,484.88
Liberty Mutual$5,995.27$6,151.63
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As you can see, UBI and pay-per-mile programs can save you quite a bit of money (an average of 2.33%) if your annual mileage stays low.

If you’re ready to buy telecommuting car insurance and start saving, enter your ZIP code now to compare the best telecommuting car insurance rates today.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

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