Telecommuters Get Lower Insurance Rates?

I just saw this today and am thinking now I’d better call my insurance agent to be sure I’m noted as a “pleasure” driver on our car insurance policy…

From the Consumer Federation of America (CFA):

“Auto insurance rates are partially based on how much you drive and how you use your car,” said J. Robert Hunter, Director of Insurance for CFA and former Texas Insurance Commissioner and Federal Insurance Administrator. “If you drive less to save money on gas, these driving changes might mean that you qualify for immediate insurance rate relief,” he said. “We encourage all Americans to act now to save money by calling their insurance company or agent and asking if they qualify for an immediate rate reduction.”

The idea is simple. If you’ve stopped driving your car to work (or school) your insurance classification has changed from “Drive to Work” to “Pleasure.” According to the CFA Consumer Alert, savings on car insurance could be anywhere from 10 to 15 percent.


So I’ll be calling Gina in the morning to be sure we’re getting the best rate and I urge you to call your own insurance agent if you’re a telecommuter, too.


  1. I get a break on my rates for being a remote worker. It’s pretty nice.

    Actually the discount isn’t specifically for being a telecommuter; it’s because I drive less than 7,500 miles a year. I think my insurance company also gives smaller breaks for those who drive under 10K and under 15K.

    Every now and then they ask me to report the mileage on my car to make sure I am still entitled to the discount.

    The nice this is that since it’s based on mileage, car owners who commute to work by mass transit are also likely to be eligible for the discount.

    It pays to call and ask.

  2. Right, it’s not really an insurance break specifically for telecommuting, but for driving less. Good point that it also applies to everyone else who drives less for whatever reason! I’ll definitely be giving Gina a call to make sure we’re getting the best possible rate.

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