Car Insurance When Working Remotely: Can You Lower Rates? (2025)

How Remote Work Changed Driving Habits

Remote work has transformed the daily routine for many people across the country. Just a few years ago, long commutes were the norm. Today, thanks to flexible working hours, more people either work from home part of the time or avoid long drives altogether. This shift has led to a major change in driving habits.

Cars that once racked up thousands of miles annually may now sit parked for days at a time. Simply put, less time behind the wheel means fewer accidents. And wouldn’t that suggest car insurance premiums should be lower for those who rarely drive?

The answer is often yes, depending on your insurer and policy type. Some companies offer discounts for low-mileage drivers, while others may require you to switch to a pay-per-mile or usage-based policy to see real savings.

Beem helps remote workers easily compare insurance providers and find policies that reward their new, lower-risk driving lifestyle.

Why Mileage Matters in Car Insurance Pricing

One of the biggest factors insurers use to calculate premiums is annual mileage. The logic is simple: the more you drive, the more likely you will be involved in an accident.

Even cautious drivers face higher exposure to risks like distracted motorists, bad weather, or unexpected road hazards the longer they’re on the road.

Here’s how mileage breaks down for most drivers:

Average US driver: 12,000–15,000 miles per year.
Moderate drivers: 7,500–11,000 miles annually.
Low-mileage drivers (often remote workers): Under 7,500 miles per year.

Insurance companies typically set thresholds for mileage categories. You may qualify for a lower premium if you fall below one of these cutoffs.

For example, if you used to drive 14,000 miles a year but now average only 6,500 because of remote work, your risk profile changes dramatically in the insurer’s eyes.

That’s why reporting your mileage accurately—and checking if you’re eligible for a discount—is essential.

How Remote Work Can Lower Car Insurance Rates

Working remotely can reduce car insurance rates in several ways, depending on your specific driving habits and the flexibility of your insurer. Let’s break down the most common opportunities.

Reduced Annual Mileage

When your car spends more time in the driveway than on the highway, insurers see that as reduced exposure to accidents. Many companies offer mileage-based pricing tiers, where premiums drop if you drive under a set threshold—often 7,500 or 10,000 miles per year.

Example:

Before remote work: 14,000 miles annually → standard premium.
After remote work: 6,000 miles annually → possible 10–15% discount.

Eligibility for Low-Mileage Discounts

Many insurers offer low-mileage discounts, typically 5% to 15%. The savings aren’t automatic—you must report your reduced usage. Insurers may ask for odometer readings or maintenance records to confirm your mileage.

For someone paying $1,600 per year in premiums, even a 10% discount adds up to $160 in annual savings just for driving less.

Pay-Per-Mile or Usage-Based Policies

Pay-per-mile insurance may be the most cost-effective option if you’ve cut your driving to the bare minimum. These policies charge a small base rate plus a per-mile fee tracked via telematics devices or mobile apps.

Example:

Base monthly rate: $30
Per-mile rate: $0.06
500 miles per month = $30 + $30 = $60 total premium.

For drivers rarely leaving their neighborhood, these plans can cut premiums in half compared to traditional coverage.

Secondary Vehicle Savings

Remote work often means households usually have a second car that sits unused. If one vehicle is rarely driven, you may be able to:

Switch it to seasonal coverage (for summer-only use, for example).
Lower it to storage coverage if it’s parked long-term.
Reduce coverage to liability-only if the car has low value.

This kind of adjustment can free up hundreds of dollars per year.

How to Prove Lower Mileage to Insurers

Insurers won’t always take your word for it—you may need to document your lower usage. Here are common methods:

1. Odometer Readings: Many companies ask for mileage updates at renewal time. Submitting an odometer photo is often enough.

2. Telematics Apps: Some insurers use apps that track your mileage and driving habits. If you’re comfortable with monitoring, this can unlock usage-based discounts.

3. Service Records: Receipts from oil changes, tire rotations, or inspections can show consistent low mileage over time.

4. Written Affidavits: Some insurers accept signed statements about your driving habits, though verification may follow.

Providing proof is worthwhile, since it helps secure long-term savings on your premiums.

Pitfalls to Avoid When Updating Policies

While remote work creates opportunities for savings, there are also pitfalls to watch for.

1. Underreporting Mileage: Don’t exaggerate your low usage. If your insurer discovers your mileage is higher after an accident, it could result in claim denial or policy cancellation.

2. Forgetting to Update if You Return to Commuting: If you return to the office full-time, update your policy to avoid being underinsured.

3. Dropping Coverage Too Far: Even if you rarely drive, dropping liability or comprehensive coverage completely could leave you exposed to costly risks like theft, vandalism, or weather damage.

The goal is to balance savings with adequate protection—not to cut corners that could cost more later.

Other Ways Remote Workers Can Save on Insurance

Lower mileage isn’t the only way to reduce premiums as a remote worker. Here are additional strategies:

1. Bundling Policies – Combine auto with renters or homeowners insurance for 10–20% savings.

2. Raising Deductibles—The risk of needing small repairs drops if you drive less. Raising your deductible from $500 to $1,000 can lower premiums significantly.

3. Shopping Around – Some insurers are more remote-work-friendly than others. Comparing quotes helps you spot companies that weigh mileage more heavily in pricing.

4. Adjusting Use Categories – Insurers classify cars as “commute,” “business,” or “pleasure.” Switching your vehicle to “pleasure use” (occasional errands, weekend trips) can lower your rate.

5. Taking Advantage of Defensive Driving Courses – Some insurers reward policyholders who complete approved safety programs, adding another layer of discount potential.

How Beem Helps Remote Workers Save

Finding the right insurer as a remote worker doesn’t have to be complicated. Beem simplifies the process by:

1. Comparing Quotes Across Insurers: Beem highlights which companies factor mileage more heavily in pricing, so you don’t waste time on policies that don’t match your driving habits.

2. Identifying Low-Mileage Discounts: It instantly shows you which policies offer special savings for remote workers, ensuring you don’t miss out on benefits designed for people who drive less.

3. Spotting Pay-Per-Mile Options: If your driving is very limited, Beem can flag insurers specializing in usage-based coverage, which allows you to pay only for the miles you drive.

4. Making Savings Easy to Understand: Instead of digging through fine print, you’ll see clear, side-by-side comparisons of policies tailored to your lifestyle, making it easier to choose the plan that balances cost and protection.

See how much you can save on car insurance as a remote worker with Beem.

FAQs – Remote Work and Car Insurance

How much can remote work actually lower my premiums?
Savings vary, but many remote workers see 5% and 20% reductions. Those who switch to pay-per-mile policies could cut costs by up to 40% depending on how rarely they drive.

Do I need to switch to pay-per-mile insurance to save?
Not always. Driving moderately less than before may qualify for a standard low-mileage discount without changing policies. Pay-per-mile is best for those driving fewer than 6,000–7,000 miles annually.

Can insurers verify my mileage reduction?
Yes. Insurers may request odometer photos and maintenance records or use telematics apps to confirm mileage. Providing accurate proof ensures you qualify for the maximum discount.

Will my rates go up if I start commuting again?
Most likely, yes. If your annual mileage increases, your insurer may reclassify your policy, and your premiums will rise accordingly. Always update your insurer to avoid coverage issues.

Should I drop coverage if I barely use my car?
No. Even if your car is parked, it’s still vulnerable to theft, fire, or weather damage. Instead of dropping coverage, consider reducing to storage insurance or adjusting to liability-only for older vehicles.

Conclusion – Turning Remote Work Into Real Savings

Remote work has permanently changed how people use their cars. For many, driving less means a genuine opportunity to cut car insurance costs. Whether through reduced mileage discounts, pay-per-mile coverage, or adjustments to vehicle use categories, savings are available to those who know how to ask for them.

The amount you save will vary by insurer, but one thing is clear: remote workers can negotiate lower premiums than daily commuters.

With Beem, you can compare insurers side by side, identify low-mileage discounts, and secure policies that reflect your current lifestyle. Download the app now! Don’t let your car insurance reflect your old driving habits—update it to match your new reality and start saving today.