Effects Of Carpooling On Your Auto Insurance
Posted on: 24 May 2019
If you have a long commute to work each day, have you considered carpooling? Carpooling is a great way to save money on fuel costs, and it also reduces the wear and tear on your vehicle. If there are people in your area you can carpool with, it could offer a lot of benefits to you. If this is something you are considering, it is important to understand the effects it may have on your car insurance.
You might qualify for a discount
The first thing to understand about carpooling is that it will likely greatly reduce the number of miles you drive each month, and this means that you might qualify for a low-mileage discount on your auto insurance. Insurance companies generally offer discounts like this to people who drive very little, as driving less reduces the risks of getting into an accident and filing a claim.
If your commute is 100 miles each day and carpooling leaves you driving just one day a week, you could go down from 500 miles a week to 100 miles. This is a significant change, and it is likely to result in qualifying for a low-mileage discount. You would have to ask an agent to find out for sure though.
You might need to increase your liability coverage
The other effect you should realize is that when you carpool, you are putting other people's lives in your hands. Because of this, you might need to adjust your liability coverage. Your liability coverage protects you if you cause an accident that leaves people injured, and it would protect the passengers that get inside your car each time you drive. Increasing your liability coverage might be necessary if you decide to carpool, simply because increasing it would offer more protection for everyone, and it would also protect you.
You should talk to an auto insurance agent to find out if you need to make changes
Making the move from driving yourself to work each day to finding a group of people to carpool with is a big change, and anytime you have a big change in life, you may want to consider talking to your auto insurance agent. An agent will help you determine if the change you are making now qualifies you for any discounts, or if the change requires adding or changing the types of coverages you have on your policy. To learn more, reach out to an agent, such as those at Angel Auto Insurance.
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