Living far from your workplace translates to a longer commute each day, and it is not good for your auto insurance premiums. Here are some reasons a long commute may see your auto insurance rates hike:
Increased Risk of Accident
The more you are on the road, the more you expose yourself to accident risk. The increased risk is there even if you are a conscientious driver because you are not the only road user; others may not be as careful as you. Your increased exposure to accidents means more risk to your auto insurance company, and they will have no option but to cover the risks with a rate hike.
Increased Risk of Car Damage
An extreme commute also means an increased risk of car damage. For one, the more accidents you are involved in the more your car will be damaged, thereby costing the insurance company more money. Secondly, the more you drive, the more wear and tear your car will experience, and a worn-out car is more likely to be damaged than a car in pristine condition.
Increased Annual Mileage
Lastly, mileage is one of the factors insurance companies consider when setting auto insurance premiums. Those who exceed a certain maximum may experience increased rates while those with lower annual mileages may see auto insurance discounts. The longer your commute is, the more likely you are to exceed the maximum and see your rates hike.
What You Can Do To Manage the Rates
Fortunately, you don't have to resign yourself to high auto insurance costs just because you live far from your workplace. There are things you can do to mitigate the effect of your long commute, and they include these three:
If you are multiple people commuting on the same route regularly, then you can opt for carpooling so that you don't have to drive your car to work every day. You can do this informally by talking to your neighbors or you can join formal carpooling groups that operate in your area.
Depending on the nature of your job, you may also be able to work from home on some days so that you don't have to go to the workplace every day. Ask your employer if this is an option for you so that you can reduce your time on the road due to commute.
Using Public Transport
Lastly, you may also reduce your commute by using public transportation. Of course, this is only an option if you live in an area with a good public transport network.
For more information, check out websites like http://www.village-insurance.com.Share