How commuting to work affects your insurance premium
Key takeaways
- Only 13.8 percent of U.S. workers have completely remote jobs as of 2023, leaving most workers commuting to and from work.
- Longer commute times raise the risk of collisions and insurance claims, which can in turn raise the cost of insurance.
- Keeping your commute short and using alternate modes of transportation could help you manage vehicle ownership costs.
The American commute is changing. While the end of the COVID-19 pandemic brought commuters back to the road, nearly 14 percent of Americans still telecommute to work, according to the U.S. Census Bureau. And for those who do drive to work, the average commute is getting longer. Bankrate’s insurance editorial team looked into the changing landscape of U.S. commuter life to consider the insurance implications of your commute — whether it’s from the suburbs to the city or from your bedroom to your home office.
Commuting statistics
Commuting looks different for U.S. workers depending on a vast number of variables, including whether they’re following a hybrid work plan. Here are some key statistics outlining the landscape of the U.S. commute in 2024:
- On average, Americans spent 53.6 minutes a day commuting to and from work in 2023, up from 52.8 minutes in 2022. (US Census Bureau)
- Just 13.8 percent of U.S. workers worked from home full time in 2023, down from 15.2 percent in 2022 and 17.9 in 2021. (US Census Bureau)
- More workers drove alone to work in 2023 compared to 2022, but solo commuting is down by over 5 percent compared to pre-pandemic levels. (US Census Bureau)
- Workers in Columbus, Ohio, Las Vegas, and Memphis have the quickest average commutes, while New York, Chicago and Los Angeles see the most hours lost to commuting delays. (Wall Street Journal)
- Bodily injury auto claim severity has increased 20 percent in the post-pandemic years. More drivers back on the road may lead to more claims and increased insurance premiums. (LexisNexis)
How does commuting to work affect my car insurance?
Among the factors that insurance companies look at when issuing quotes for auto insurance is vehicle use — how and how often you drive your insured car.
A car that’s used for a daily commute carries a higher risk of accidents and claims than a car that’s only driven occasionally for pleasure. You may also carry a lower level of risk if you work a hybrid schedule and commute just a few days a week, or if you use public transit or alternative modes of transport (such as a bicycle) to get to work.
When you shop for auto insurance, you’ll likely be asked to estimate your annual mileage. If your commuting schedule results in an estimated annual mileage well below the national average, your insurance could be impacted in the following ways:
- You could get a lower rate: Because less time on the road means less opportunity for accidents, a low annual mileage could put you in a more favorable rating tier and earn you a lower premium on auto insurance. Keep in mind, though, that you may need to provide odometer proof in order to qualify.
- You might qualify for pay-per-mile insurance: Some insurance companies offer pay-per-mile programs that allow you to pay a low monthly or daily base rate along with a certain amount for each mile you drive on the days you do drive. If you have a light hybrid schedule with a short, infrequent commute, this could be a good option.
- You may need less coverage: If you only drive your car infrequently, it might be worth reviewing your coverage with a licensed agent to see if you’re paying for anything you don’t need. While you’ll need to meet your state’s minimum car insurance requirement, a car that’s driven daily may have greater coverage needs than one you only turn on once a week.
Do I have to tell my insurer if my commute changes?
Because your commute can be a factor in how your insurance policy is priced, it’s worth bringing up any significant changes to your insurance agent.
For example, if you recently started working from home and expect your annual mileage to drop significantly, you may want to inform your insurance company to see if your rate can be lowered to reflect your reduced risk. Conversely, if you’re returning to full-time in-person work and expect your mileage to increase, it’s worth notifying your insurer. Your rate could go up, but communicating with your insurer about this change may help you to avoid a claim being dropped if your insurer finds out that you misrepresented important information about the vehicle’s use.
How to plan for your commute
Data from the Census Bureau’s American Community Survey shows commute times climbing in the wake of the pandemic, with as many as 8.9 percent of U.S. workers traveling over an hour each way to and from work. To help prepare for your commute, consider the following tips:
- Plan ahead: Give yourself extra time on your way to work to allow for unpredictable delays. This time buffer can help to reduce stress and lower your risk of engaging in unsafe driving behaviors like speeding.
- Monitor your stress: Whether it’s traffic, your boss or your personal life, stress on the road can lead to poor judgment and costly outcomes. Stay present and self-aware when driving to avoid letting a bad mood negatively influence your driving.
- Keep your options open: Post-pandemic, many Americans are questioning the commute. If you’re interested in remote or hybrid work or open to alternative transport options like carpooling, walking, biking or using public transit, you might be able to reduce your overall car ownership expenses, including fuel and insurance.
Frequently asked questions
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