If you’ve recently switched from an office to remote work, congratulations! You can now skip on commutes and save money on car insurance. It is the perfect time to review your auto insurance policy, and this article is here to help.

The amount you drive annually is an important piece of how insurance agencies calculate your risk. If someone drives every day, they are more likely to be in an accident than someone that drives less. In a Covid19 affected world, many of us are realizing there’s less need to be behind the wheel.

If this describes your situation, it is time to call your insurance agency. Explain the change in your driving mileage and ask about reduced rates.

But don’t stop there! Less mileage means changing the plan, and this new plan may be cheaper at another company. Insurance agencies often offer deals to newcomers in the hopes of gaining customers. In these times of change, it’s worth shopping around to see what’s out there, and it’s not as difficult as you might think.

Simply visit a website such as Gabi.com, input the amount of insurance you want, and the site will compare insurance agency rates for you. Full disclosure, I am not positive this app takes into account current discounts, so make sure you look into those on your own.

As a result of driving less, I know it can be tempting to cut the amount of insurance you own.

Why NOT Reduce Insurance to Legal Minimums

You may be barely driving nowadays, so why not reduce your car insurance to the legal minimums? Dropping large amounts of coverage is rarely a good idea unless you are sure that you won’t be driving at all. The world is random, and accidents can happen even driving through your own neighborhood. Heck, your car can be damaged parked outside of your home.

At the very least, keep your liability insurance high coverage. Liability insurance covers the cost of repairing damages you caused. For example, if you crash into another car, liability insurance makes sure that you don’t pay for the other car’s repairs completely out of pocket. It is illegal to drive without any liability insurance, and it is wise to maximize your level of liability coverage.

Going so far as to double liability coverage only costs around $5 more per month depending on your insurance carrier, and it is well worth it in the event of an accident. (Note that I got these values from a six-month payment plan, which saves money overall when compared to paying premiums monthly.) If you are sued for damages and your liability insurance isn’t enough to cover the costs, you’ll be kicking yourself for not maximizing the coverage.

And of course, having a good driving record also saves you money. So drive safely, keep yourself covered, and enjoy the new world of remote work.