The Cost of Commuting to Work
If you changed jobs recently, you're not alone. A U.S. Department of Labor study finds that the typical American changes jobs every three-and-a-half years!
At a minimum, changing jobs causes a ripple in your financial state. After all, that's likely why you made the change in the first place. Before making your final decision, you thought you had considered every financial aspect imaginable.
But did you? One area you likely did not consider is the impact the job change will have on your auto insurance premium.
The Cost of the Commute
Two factors you should ponder when considering a job change is your new commute and what affect it will have on your mental outlook and family budget. Many workers seek employment closer to home to reduce the financial and emotional strains caused by a long daily commute.
If your new job has lowered the number of miles you spend driving to and from your workplace, it's time to consider the effect the shorter commute will have on your auto insurance premium.
Smaller Commute = Smaller Exposure
Auto insurance companies use several factors to determine premiums for auto insurance. One of the key factors is mileage driven on an annual basis.
If by taking a new job you reduce the number of miles you drive each year, you will save money on your auto insurance. The reason is simple: People who drive high numbers of miles are statistically more likely to be involved in an auto accident. And, commuters usually drive several miles a day one way and many routes take them through congested commuter traffic-a primary contributor to many auto accidents.
Auto insurance companies compete for your business by offering discounts if you meet certain qualifications. Most extend discounts to drivers whose annual mileage is lower than the norm (this number varies by company, i.e. less than 10,000 miles). Since a shorter commute likely will reduce your overall annual mileage, ask your insurance agent if you are eligible for the low-mileage discount.
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