Sun. Jul 14th, 2024

Freelancing is becoming more and more popular lately. There are many advantages to the freelance lifestyle and the ability to choose your jobs and your schedule. One of those perks is the potential to save a lot of money on car insurance.

Freelance work covers a wide range of occupations, though, and not every type of work is associated with lower car insurance rates. In fact, some types of freelance work may require commercial car insurance, which can be expensive.

So, whether you’re looking for car insurance as an independent contractor building houses, or you’re looking for the best deal on insurance as a stay-at-home writer, we’ll help you discover how you can pay the lowest rates for insurance as a freelancer.

Commercial Coverage for Freelancers Commercial Coverage for Freelancers

Sometimes the line between driving for work and driving for pleasure can be gray. If you use your vehicle for work-related errands, deliveries, and equipment transport, your personal auto insurance policy may contest a claim made while you were driving for business.

A commercial auto insurance policy is designed for business needs. It protects your freelance business, and you won’t have to worry about whether you’re covered when driving for work-related reasons.

The unfortunate thing is that commercial auto insurance can be expensive, far more so than personal auto insurance.

If you’re unsure if you need a commercial policy, the best way to know is to talk to your insurer. It’s better to have everything in the open and get the right policy for your needs than to have a claim denied because you withheld vital information.

Many freelancers don’t need to use their vehicles for job-related reasons. However, if you find yourself in that category, you’ll want to read about the following options.

Car Insurance Options for Freelancers

Two main options could help you save money if you’re a mompreneur or stay-at-home freelance worker.

Pay-Per-Mile Car Insurance

Pay-per-mile car insurance policies are growing in popularity. Just a few years ago, there were only a couple of companies that offered these policies, but now, even the mainstream insurance providers are developing their own versions of pay-per-mile policies.

If you opt for this kind of insurance policy, you can expect to pay a monthly service fee and then pay a set rate for every mile you drive.

If you no longer have a commute and you find that you don’t drive very many miles annually, a pay-per-mile policy may help you save hundreds of dollars a year on car insurance. Instead of paying rates based on the average driver, you’ll pay rates based on the limited amount of driving you do.

Low-Mileage Insurance Rates

Even if you decide a standard policy is a better fit for your situation, you should ask your car insurance provider what the annual mileage limit is for a low-mileage discount. Then, if you expect to drive fewer miles than the limit in the next year, you can apply the discount to your policy.

If it turns out that you drove more miles than the limit, you’ll be responsible for repaying the insurance company for the discount.

With the money you save by not driving as often, you can build your retirement savings.

Car Insurance Discounts for Freelancers

There aren’t specific discounts available just for freelancers, but several discounts might apply to people who work for themselves. We’ll look at some of the most common discounts below.

  • Automatic payments – If you work on a computer, you’re probably pretty comfortable with setting up automatic payments on your computer. The insurance company is more likely to be paid on time with automatic payments, so they return the favor with a discount.
  • Good driver – If your driving record is clean and you haven’t made a claim for at least three years, you’ll probably be eligible for a good driver discount.
  • Safety features – If you drive a car with safety features ranging from airbags to automatic emergency braking, the chances are that you’ll earn a safety discount. Some insurance companies have different discounts for each safety feature, while others lump everything into a single safety discount.

If you work from home, you’ll probably be able to save money on car insurance. However, if you use your vehicle specifically for your freelance work, you’ll probably spend more on insurance. In either case, you can save money by applying all the discounts you’re eligible for.

Comparing car insurance quotes will help you find the best fit for your needs, and you may save a significant amount of money by switching providers.

Melanie Musson

Melanie Musson writes and researches for the car insurance site, She strives to help others understand their insurance needs so they can protect their current and future financial stability.



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