How driving less affects your car insurance cost

Working from home? Driving less? You could be saving on your car insurance and we’re here to tell you how.

By ATB Financial 20 October 2021 2 min read

Woman behind steering wheel driving

Between fluctuating restrictions and a shift to a work from home culture, many Albertans are driving less than, well, ever. What many Albertans might not know is that not driving could mean saving money on car insurance—and who doesn’t like saving money? Whether you’re committed to the WFH life or are starting to commute again, here’s what you need to know about auto insurance during COVID-19.

Wait, does driving less change auto insurance costs?

Short answer, yes.

Long answer: the lower the kilometers you’re driving on a regular basis, the cheaper your insurance will be. Why? You have a lower risk of being involved in a car accident when you’re on the road less, and you’ll be less likely to have a claim.

Wondering how much you’ll save? We recommend you chat with your car insurance provider to get an exact number.

If I’m working from home, how does that affect my auto insurance cost?

We’re willing to bet that if you’re working from home, you’re probably not driving as much as you used to. If you’re on the road less—not commuting, going on business trips or meeting with clients—reach out to your insurance company to change your vehicle use category from “Business” to “Pleasure”. That will bring your insurance costs down.

How else can I save on my car insurance if I’m working from home?

Getting a little creative can boost your car insurance savings. Here are a few tips and tricks to try:

  • Go down to one car if you don’t need two. If you’re working from home and don’t need to commute, you might be able to get away with having one car. Whether you look into selling a vehicle, or cancelling insurance and storing it until you need it, it’s an option worth exploring.
  • Trade in your car for a cheaper option. Some cars are less expensive to insure than others—definitely do your homework before making a trade. For example, new cars with tech like sensors, cameras and guidance systems allow you to avoid more accidents, but repairs and parts are more expensive, making premiums higher. Imported and luxury vehicles also can make a big dent in your wallet, since they’re targeted for theft and are also expensive to repair.

I’m going back to working in-office. Is there anything I should change with my car insurance?

Great question. If you let your insurance company know that you’d be working from home at the beginning of COVID-19, you’ll need to let them know of this change so you’re covered for commuting. Same goes if you’re going to be using your car for other business uses, like business trips or visiting clients.

Looking for car insurance? We can help.

Whether you’re gearing up to go back to work or you’re continuing to wear sweatpants to your next Zoom meeting, we’ve got your back. We’ve partnered with Marsh to get you preferred rates on your car insurance if you’re an ATB customer. Connect with an expert, ask a question or get a quote.

Auto insurance: we've got you covered

As an ATB client, drive care-free with ATB Auto Insurance in partnership with Marsh Canada.

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