Reader Question:

I work from home, so I need my car but I don’t use it a whole lot. But I’m still paying insane prices for insurance with my company. I’m thinking of just canceling my policy. Is there anything else I can do?

Edwin

Hold on, Edwin!

Even though sometimes it may seem that you use your car so infrequently that you don’t even need insurance, canceling your policy is still a bad idea. Car accidents and police officers aren’t targeting only those who drive to and from work every day–it is just as likely that you could get pulled over and ticketed for no insurance, or get in an accident, as any other driver on the road. So while it may seem an unnecessary cost, it definitely is necessary.

What you can do is get your insurance lowered significantly with a discount. Now, the discount that would apply specifically to you is called a low mileage discount. Almost every insurance company offers it. Basically what it is, is a discounted rate for cars that use below a certain amount of miles every year. The maximum cut-off for yearly mileage is usually around 5,000, but every company will have a different maximum, so ask your insurance company first.

Don’t despair over those prices! Always ask about what kind of discounts your company offers. Most people are able to take advantage of at least one.

Sincerely,

Fashun Guadarrama.