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When launching a new policy or updating a vehicle with an existing policy, how an insurance company uses the vehicle every day is one of the most common questions. Do you drive just for business and weekend outings, or do you rely on your daily commute? The answer may seem like small details, but the risk of an accident between a car used for pleasure and a car used for commuting varies. The age of the vehicle, make and model affects insurance premiums, but the cost of car insurance is also influenced by the way and when the vehicle is used. Let’s take a look at how each scenario affects car insurance premiums.
Do you need different car insurance to commute and drive with pleasure?
Although you do not need separate insurance contracts for pleasure or commuting use, coverage needs and rates may vary depending on the frequency and location of driving. For example, you can opt for full coverage auto insurance for vehicles that are often driven in busy commuter traffic or parking lots in busy cities where vandalism can become more common. On the other hand, if you have an older car that you only use for accidental trips to the grocery store, it may not be worth paying for full coverage. Understanding the differences between insurance companies will help you choose the exact usage of your vehicle when it is considered for pleasure and commuting use.
Car insurance for pleasure driving
If your car remains parked that week and just hits the road for a groceries or a Sunday drive, it is probably considered a joyous car. Pleasure vehicles are not normally driven daily. This designation is not suitable for daily commutes, but may be suitable for those who own sports cars or classic cars that are sometimes driven.
You can use your car, for example, running errands, going to a grocery store, or driving to a nearby bistro to eat with friends. Maybe it’s your favorite ride for weekend adventures and road trips with your friends. In any case, this is a car that is usually only occasionally driven on weekends or at night. This classification usually comes with a slightly lower premium, as it faces more exposure to risk rather than on the streets. Pleasure and use specifications may apply as follows:
- Retired people
- Remote Worker
- Seasonal car
- Spare trucks are sometimes used for hauling and dunplans
Car insurance for commuting
Commuting applies when driving a car to another location regularly, such as a park, ride or train station, at work, school, or due to a halt of transportation. These daily drives usually occur during high traffic times, resulting in a higher risk of accidents and slightly higher insurance premiums than pleasure vehicles. A typical commute can be thought of as follows:
- I drive myself to work on a daily basis
- Drive another job on a daily basis
- Drive you or your child to school
- Driving to transit stops, such as parks, rides and train stations
As a normal mode of transportation, you spend much more time on this vehicle than a pleasure vehicle. Therefore, commuter cars, or daily drivers, when some carriers call it, usually face far higher risks than pleasure cars that only drive occasionally.
Why does my insurance company care about how I use my car?
Mileage and usage patterns can help you measure how likely your insurance company is to file a claim. Time behind the wheel, especially in busy traffic, means great potential for fender benders. If you are likely to file a claim in the future, the company will adjust the cost of your car insurance to cover that risk.
It’s not just the risk of conflict that insurers are cautious. If you are commuting to a more populous city, this exacerbates the risk of theft and vandalism, increasing the likelihood of filing a comprehensive claim.
Also, commuters often have to drive in bad weather to go to work or school, but pleasure drivers are usually able to wait for better road conditions. This is another factor that changes the level of risk that insurers consider.
Is car insurance more expensive to commute than to pleasure driving?
Commuting car insurance is usually more expensive than pleasure insurance due to daily risks associated with commuting, as well as the differences in mileage annually. Commuter cars typically have mileages of 12,000 to 18,000 per year, but pleasure drivers often drive below about 5,000 miles per year. The distance you travel can also affect your insurance rates, and insurance companies often reward drivers with lower rates than what long-distance commuters can face.
Although it is not often used, you can usually see lower rates based on lower mileage annually, but the make and model of the vehicle play a role in determining the rate. For example, if your pleasure vehicle is a foreign-made sports car, most companies view the sports car as high risk of incurring, so you can actually pay a higher fee. Alternatively, if the vehicle you use for your commute is an older model with liability-only insurance, you can pay dramatically less than a vehicle that can be used for full coverage pleasure.
Please note that vehicle type and use are just two factors of many factors that contribute to the cost of car insurance. In most states, personal rating factors such as driving records, age, and credit history all affect car insurance premiums. If you are looking at surprisingly high car insurance quotes for your commute or pleasure vehicle, other factors may be working.
