If your car now spends more time acting as a backup office chair than a mode of transportation, you’re not alone.
Since the rise of remote work, a growing number of people—maybe including you—are driving a lot less than they used to. Commutes have become coffee strolls. Rush hour’s been replaced with quick grocery runs or the occasional errand. And yet, for many remote workers, car insurance costs haven’t budged.
Why? Because insurance models haven’t always kept pace with the shift toward lower mileage lifestyles. But that’s starting to change—and if you’re working from home, there’s a solid chance you’re overpaying for coverage you’re barely using.
This isn’t about ditching your coverage or going bare bones. It’s about right-sizing your policy to match your actual driving habits—and protecting your budget along the way.
Why Traditional Car Insurance Doesn’t Always Serve Remote Workers
Here’s the thing most people don’t realize: car insurance pricing is based largely on risk. And risk, in this case, has everything to do with how much you drive, where you drive, and when you drive.
But for a long time, insurance companies leaned more heavily on where you live, your age, and your credit score than on actual use. That’s started to change in recent years, with usage-based insurance models becoming more common—but many people are still stuck in outdated policies that assume they’re commuting daily.
And if you don’t correct that? You could be paying hundreds (or thousands) more per year than someone with the same driving history but a more tailored plan.
Understanding How Driving Less Affects Your Insurance
You might assume that if you drive less, your rates will automatically go down. That’s only sort of true.
- Some insurance companies ask for estimated annual mileage and adjust rates accordingly—but others use broader categories (like “under 7,500 miles” or “over 15,000 miles”), which may not reflect your real usage.
- Companies offering pay-per-mile insurance track your actual driving habits via a telematics device or app—and charge you accordingly. These options are often cheaper for remote workers, but not always ideal for those who occasionally take long trips.
- Most traditional carriers only revisit your mileage at renewal—or not at all—unless you proactively ask for a review.
Step-by-Step: How to Pick the Right Car Insurance for Your Remote Lifestyle
1. Recalculate Your Mileage—Realistically
Before making changes, start by estimating how many miles you actually drive in a year now. (You don’t need to be exact, just honest.)
Include:
- Grocery trips
- Weekend errands
- Occasional road trips or vacations
- Medical appointments
- Miscellaneous drives (e.g. airport runs, friend visits)
For many people working remotely, this number hovers between 3,000 and 7,000 miles per year—which qualifies as “low mileage” by most insurer standards.
Tip: Check your last inspection or oil change report to compare odometer readings and get a data-based estimate.
2. Consider Usage-Based or Pay-Per-Mile Insurance
If your annual mileage is well below the national average, you may save significantly with a mileage-based policy. These options use real-time data to bill you based on how much (and how safely) you drive.
Examples include:
- Metromile – Charges a base rate plus a per-mile fee
- Mile Auto – No tracking device; uses periodic odometer photos
- Allstate’s Milewise and Nationwide’s SmartMiles – Telematics-based policies that track daily usage
- Root and Progressive Snapshot – Broader usage-based options that also track driving habits like hard braking or night driving
These policies tend to favor drivers who:
- Drive less than 8,000 miles per year
- Rarely commute during rush hour
- Have good driving habits
- Live in areas with lower accident rates
Personal note: I switched to a usage-based policy after logging fewer than 6,000 miles for two years straight. The savings? Over $700 annually—with no change to my coverage levels.
3. Adjust Your Coverage (Without Sacrificing Protection)
Driving less doesn’t just affect how much you pay—it can influence what kind of coverage levels make sense, too.
That said, don’t automatically reduce your coverage. Liability requirements don’t change based on mileage, and comprehensive coverage is still wise, especially if your car is parked outside or in a high-risk area for theft, weather, or vandalism.
However, here are areas where you may have room to trim:
- Collision coverage: If your car is older and you rarely drive, you might not need full collision coverage—especially if the car’s market value is low.
- Roadside assistance: Some policies bundle this in, but if you rarely drive far or already have AAA, you may not need to double up.
- Rental reimbursement: This helps cover the cost of a rental car after an accident—but if you work from home and could go without a car for a bit, you might opt out.
Always make decisions based on risk—not just price. Talk to your insurer or broker about which changes make sense given your actual usage and financial situation.
4. Shop Around—Even if You’re Happy
Insurance companies don’t reward loyalty the way you might think. In fact, many quietly raise premiums year over year—even if your driving hasn’t changed.
If you haven’t comparison shopped in the last 12 months, now’s the time. Use this moment—post-remote shift—to ask, “Does this policy still reflect how I use my car?”
When shopping, make sure to:
- Ask for quotes based on your current mileage
- Compare similar coverage levels—not just monthly price
- Factor in potential discounts for low mileage, bundling, or safe driving
- See if your state offers any unique programs for low-mileage drivers (California, for instance, has mandated mileage-based discounts)
5. Check for Hidden Discounts
Many insurers offer discounts that remote workers may now qualify for, such as:
- Low mileage or infrequent driver
- Usage-based discounts for safe driving
- Bundled home/auto insurance (especially helpful if you now work from your home full time)
- Telematics participation bonuses just for opting into app-based tracking
- Occupational or affinity group discounts—some professions (like teachers, engineers, or government employees) qualify for automatic savings
Ask directly—don’t assume your insurer has applied every eligible discount.
If You Work From Home, Do You Even Need a Car?
That’s a question a growing number of people are asking.
If your car sits idle 90% of the time and your insurance, registration, and maintenance costs add up to thousands each year—it may be worth reassessing your transportation model.
Options to consider:
- Car-sharing memberships (Zipcar, Turo)
- Occasional rentals for road trips
- Public transit, walking, biking, or ride-hailing for short commutes
- Downsizing to a one-car household if you’re partnered or live with others
If owning still makes sense—great. But if your car has become a high-cost security blanket, there may be more efficient ways to get around.
What We’re Seeking:
More people thinking of car ownership not as a default—but as an active financial choice. Remote life has reshaped our routines. Now it’s time to let it reshape our expenses, too.
Insurance That Reflects Your Actual Life
The whole point of insurance is peace of mind. But peace shouldn’t come at the cost of paying for coverage that doesn’t match your lifestyle.
Working from home changes your relationship with your vehicle. And that means it should probably change your relationship with your car insurance, too.
So don’t let inertia or a “set it and forget it” mindset quietly drain your budget. With a few mindful updates, you could have a policy that’s better aligned with your life, your risks, and your financial goals—without sacrificing security.
And maybe, just maybe, those savings can go toward something more meaningful than your parked car.
