How Insurance Works

What is the best car insurance for people that commute to work?


Hi, I’m Dan Karr.
I’m the founder of ValChoice. At ValChoice our mission is to bring
transparency to insurance in terms of how it’s priced, how well companies pay
claims and the overall service they offer. Today we’re answering questions
about how car insurance is priced. Raphael from California wants to know
what’s the best car insurance for someone that commutes to work. Californians spend a lot of time commuting, so it’s a very good question. There’s a few
factors that really affect car insurance price for commuters. One is how far do
you commute on a daily basis. Typically the insurance industry looks at that as
less than 15 miles or 15 miles or more. And then, what is that total in terms of
your annual mileage. And so with the car insurance calculator you can use
this to to take a look at that. The third option to look at in this case is maybe
you have the the opportunity to work from home. And so in the event that you
work from home, you would enter that you use your car for pleasure. In the event
that you commute a short distance you’d say that you commute less than 15 miles
or a long distance more than 15 miles. And then your annual mileage with each
of those options we can show you exactly what you can expect to pay for your car
insurance, based on where you live and your driving record and all those types
of things. Anybody has the opportunity to save money on their
car insurance by working from home, what you also want to look at is the actual
operational cost savings of the car itself, not just the insurance cost.
That tends to be about 55 cents a mile so you can multiply 55 cents times the
reduced number of miles you drive per year and come up with your total cost
savings.


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