subject: If You Work From Home, You Should Pay Less For Your Car Insurance [print this page] If you work from home, first of all, you should feel very lucky! It is the great Australian dream for many working men and women out there, and has plenty of benefits. It might not quite be the same as just staying at home and getting paid for it .. but most of those who are able to, feel that it is well worth it. Today we are looking at another possible benefit of working from home - a substantial reduction on your car insurance!
How car insurance is calculated
Some questions that car insurance companies ask you are standard across the industry. It is generally well accepted that the following can all contribute to your likelihood of having an accident and therefore having to claim on your car insurance:
The make and model of your car;
Your address - cars in certain locations are more likely to become 'victims' of crime (or at least, their owners are!)
The security measures taken around your car, for example whether it is parked in a garage or carport, if there is a lockable door or security gate between it and the general public, etc
Driver-related characteristics, such as the age and experience of any regular drivers listed on the policy
Claims history
The payment method - sometimes credit card payments incur surcharges, sometimes choosing not to direct debit monthly payments incurs surcharges
Any extra benefits you want added to the policy
However, one startling difference you'll notice in some (good!) car insurance companies is that they'll also ask you questions about how and when you use the car. The daily drive to work represents a substantial portion of the overall driving time for most people. A good car insurance company will lower your premium if you take steps to lower your risk ... like working from home!
Long questionnaires, or assumptions?
When it comes time to choose a car insurance company, here is why a long, seemingly annoying and pointless questionnaire, is actually your best friend!
Standard car insurers will ask you a few questions about your car, its security, and how you use it, and make generalizations about the rest of the information. When you apply for home and contents insurance, the risks that could contribute to your premium being increased are usually shared across an entire postcode (even though only some houses are at increased risk). When it comes to car insurance, though, the risks are shared across the entire insurance company's client base! If you don't use your car very often, you are essentially paying for the risk incurred by other people that are heavy car users.
That's why it's a blessing to find an insurer that asks you those more specific, personal questions ... they want to give you a premium based on your profile, not a generalised assessment. If you work at home, look for a car insurance company that asks the big questions, and you can expect to save significant dollars on your premium!
by: Hugo Shreuder
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