Most companies already do this indirectly through annual mileage tiers. Less you drive, lower your rates.
hulsey698 on
All the carriers I can think of price your annual mileage into your premium. Some carriers offer “pay per mile” insurance, where you pay a set amount of premium each month, then pay a certain amount per mile (only a few cents per mile at the absolute worst)
You just have to upload your odometer each month, which can be annoying.
the only issue you may run into, is if you have been commuting with the vehicle for years, and suddenly are working from home. They may want evidence. Some parts stores will let you pull codes and sometimes they can give you a receipt with the odometer reading on it which could help, you would just need to get two readings at least a month apart.
Own_Explanation8675 on
From a recent online quote process (can’t remember which one, but one or more of the following: Geico, Progressive and Amica), there was a question about how many days a week I commute.
Mr_Bristles on
You just figure the amount you drive for the year after WFH and then tell your insurance company “hey my total mileage is this” and if it’s significantly less then yeah they may lower your rates because your risk goes down if the car isn’t being used as much.
InsuranceGuypc on
There are plenty of carriers (big names as well) that use telematics that now track how many miles your car moves (plug-in device or phone tracking). There are also odometer photo based programs.
Just go into your preferred search engine and search something like: “usage based auto insurance companies”. The normal that I’ve personally come across is they offer you a small participation and/or intro discount upfront, then discount your renewal based on your usage (if you drove very little, your premium goes down, if you drove a lot, your premium will probably go up).
Head_of_Lettuce on
They do this by pricing your mileage into the rate. Also most (all?) of them ask if you use the car for commuting or pleasure.
thaeli on
The direct difference for rating purposes is that if you are 100% WFH your vehicles should all be entered as “pleasure” use rather than commuting. This is a factor in most rating schemes, though usually a fairly small one. Lowered mileage is an indirect difference as well.
ZBTHorton on
Pretty much all of them do, either directly or indirectly.
8 Comments
Most companies already do this indirectly through annual mileage tiers. Less you drive, lower your rates.
All the carriers I can think of price your annual mileage into your premium. Some carriers offer “pay per mile” insurance, where you pay a set amount of premium each month, then pay a certain amount per mile (only a few cents per mile at the absolute worst)
You just have to upload your odometer each month, which can be annoying.
the only issue you may run into, is if you have been commuting with the vehicle for years, and suddenly are working from home. They may want evidence. Some parts stores will let you pull codes and sometimes they can give you a receipt with the odometer reading on it which could help, you would just need to get two readings at least a month apart.
From a recent online quote process (can’t remember which one, but one or more of the following: Geico, Progressive and Amica), there was a question about how many days a week I commute.
You just figure the amount you drive for the year after WFH and then tell your insurance company “hey my total mileage is this” and if it’s significantly less then yeah they may lower your rates because your risk goes down if the car isn’t being used as much.
There are plenty of carriers (big names as well) that use telematics that now track how many miles your car moves (plug-in device or phone tracking). There are also odometer photo based programs.
Just go into your preferred search engine and search something like: “usage based auto insurance companies”. The normal that I’ve personally come across is they offer you a small participation and/or intro discount upfront, then discount your renewal based on your usage (if you drove very little, your premium goes down, if you drove a lot, your premium will probably go up).
They do this by pricing your mileage into the rate. Also most (all?) of them ask if you use the car for commuting or pleasure.
The direct difference for rating purposes is that if you are 100% WFH your vehicles should all be entered as “pleasure” use rather than commuting. This is a factor in most rating schemes, though usually a fairly small one. Lowered mileage is an indirect difference as well.
Pretty much all of them do, either directly or indirectly.