Commuter vs. Pleasure Car Insurance

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When starting a new policy or updating a vehicle on an existing one, one of the most common questions your insurer asks is how you use your car day-to-day. Do you drive it just for errands and weekend outings, or do you rely on it for your daily commute? While the answer might seem like a small detail, the risk of an accident between a car used for pleasure versus one for commuting is different. Although your vehicle’s age, make and model impact insurance rates, how and when you use your car also influences your cost of car insurance. Let’s take a look at how each scenario may impact your car insurance rates.

Do I need different car insurance for commuting vs. pleasure driving?

You don’t need a separate insurance policy for pleasure or commuting use, but your coverage needs — and your rate — may change depending on how often and where you drive. For example, you might choose full coverage car insurance for a vehicle that you often drive in congested commute traffic or park in a busy city where vandalism could be more common. On the other hand, if you have an older car that you only use for occasional trips to the grocery store, it may not be worth it to pay for full coverage. Understanding the difference between what insurers consider pleasure use and commuting use can help you select the accurate usage designation for your vehicle.

Car insurance for pleasure driving

If your car mostly stays parked during the week and only hits the road for things like grocery runs and Sunday drives, then it’s likely considered a pleasure-use vehicle. Pleasure vehicles are typically not driven on a daily basis. This designation may be a good fit for people with sports cars or classic cars that are not suitable for daily commuting but are still driven from time to time.

For example, you may use the car for things like running errands, going to the grocery store or driving to the neighborhood bistro for a meal with friends. Maybe it is your favorite vehicle for weekend adventures or road trips with your friends. Either way, this is a car that is usually only driven occasionally, such as only on the weekends and at night. This classification usually comes with a slightly lower insurance premium since it isn’t on the road as often and faces less exposure to risk. The pleasure-use designation may also apply to:

• Retired people
• Remote workers
• Seasonal vehicles
• Spare truck used occasionally for hauling or dump runs

Car insurance for commuting

Commuting applies when you use your car to drive to another location on a regular basis to work, school or a transit stop, like a park-and-ride or train station, regularly.  Since these daily drives typically occur during high-traffic hours, the risk of an accident is higher, resulting in slightly higher insurance rates than pleasure-use vehicles. Typical commuting can be considered as:

• Routinely driving yourself to work
• Routinely driving another to work
• Driving you or your kids to school
• Driving to a transit stop, such as a park-and-ride or train station

As your regular mode of transportation, you spend much more time in this vehicle than you do in a pleasure vehicle. Therefore, your commuting car, or daily driver as some carriers may call it,  typically faces a much higher risk on the road than your pleasure vehicle that is only driven occasionally.

Why does my insurance company care how I use my car?

Mileage and usage patterns help insurers gauge how likely it is that you’ll file a claim. More time behind the wheel, especially in busy traffic, means a greater potential for fender-benders. If there is a higher likelihood of you filing a claim in the future, a company will adjust the cost of your auto insurance to help cover that risk.

It’s not just the risk of collisions that insurers are cautious of.  If you are commuting to a more populated city, this may also exacerbate your risk for theft and vandalism, which increases your chance of filing a comprehensive claim.

Also, commuters often have to drive in bad weather to get to work or school, while pleasure-use drivers can usually wait for better road conditions. This is another factor that changes the level of risk insurers consider.

Is car insurance more expensive for commuting than pleasure driving?

Commuter car insurance is typically more expensive than pleasure insurance, not just because of the daily risk associated with commuting, but also the difference in annual mileage.  Commuter cars usually have an annual mileage between 12,000 to 18,000, while pleasure drivers are often driven around 5,000 miles or less per year. The distance you travel can also impact your insurance rates, with insurance companies often rewarding low-mileage drivers with cheaper rates than those that long-distance commuters can face.

While pleasure vehicles that are used less frequently typically see lower rates based on their lower annual mileage, your vehicle’s make and model still play a role in determining your rates. For example, if your pleasure vehicle is a foreign-made sports car, you may actually pay higher rates, as most companies see sports cars as riskier to insure. Alternatively, if the car you use to commute is an older model with liability-only insurance, you may pay drastically less than a full-coverage pleasure-use vehicle.

Note that vehicle type and use are only two factors out of many that contribute to car insurance costs. In most states, personal rating factors such as driving record, age and credit history all affect your car insurance rates. If you’re seeing surprisingly high auto insurance quotes for your commuter or pleasure vehicle, other factors may be at play.

Frequently asked questions

• What if I use my car for commuting and pleasure?
  

  Determining your vehicle usage can feel challenging, but it doesn’t have to be. If your car is used for commuting at all, it would be considered commuting use. This designation encompasses risks associated with pleasure and commuting driving.

• Do I need more coverage if I use my car for commuting?
  

  You may, but it depends on the value of your vehicle and the amount of risk you are comfortable assuming. If your car still has significant value or is under a lease or finance contract, you will likely need to keep comprehensive and collision coverage.

  If the actual cash value is on the lower end, you may still want to speak to your agent about including at least comprehensive coverage if you are using your vehicle to commute to an area with a higher risk of theft or vandalism. Additionally, even pleasure-use vehicles stored safely in a garage can experience loss from fire, flood and other extreme weather events.

• What is considered a commute?
  

  For car insurance, commuting is when you drive your car to the same location regularly. It doesn’t just mean driving to work, but it can be driving your kids to school or a family member to regular appointments a few times a week. However, if you commute to work or school but also participate in carpooling, the situation could be a little different. Some car insurance companies offer carpooling or other insurance discounts if your car is only used about two days a week. It may also be possible to change your designation to pleasure use if a discount isn’t available. Your agent can help you navigate this situation if needed.