Not many insurance companies have discounts specific to carpooling, instead auto insurance providers tend to give you a discount for the lower amount of miles your vehicle will be driven within the year due to your participation in using mass transportation or carpooling with others.

We are aware that in Delaware Progressive currently specifically offers a 5% discount for carpoolers with an approved certificate of participation. The certificate shows that the insured participates in an employer-sponsored, state-approved, ride-sharing program.

There may be others that are now creating a discount category for those that car pool or use public transportation instead of commuting in their own vehicle every day, since underwriting rules do change with insurance companies (with the state's insurance regulator governing these changes of course) so if a discount for carpooling is important to you make sure to ask about it when shopping for insurance.

As we mentioned earlier carpooling with a co-worker or a number of co-workers can result in a discount for low-mileage use of your own vehicle since you are not using it every day to drive to work when you carpool with others. Many insurance companies offer low-mileage discounts to policyholders who drive a lower-than-average number of miles each year and thus if you carpool you likely fall into this category.

So if your mileage is limited or you take public transportation to work or carpool, you would normally ask your current insurer or the insurance companies you shop around with for rates if a mileage discount is available since that is what this type of discount is typically referred to instead of a carpool discount.

The reason that a low-mileage discount is offered is that the more miles you drive, the greater the likelihood of being involved in an accident. Some auto insurance companies offer discounts to drivers who keep the number of miles they drive each year under a specified limit. This limit is usually between 10,000 and 12,000 miles annually, depending on the insurance carrier. Auto insurance companies may also provide discounts for those people who use mass transit to commute to and from their workplace or are involved with a carpool since this helps keep their mileage down on their vehicle.

Of course the carpool your take part in would need to be operated not for profit. When payment is made than this becomes more of a livery service than carpool and thus the car owner may need to upgrade their insurance to make sure it covers them and the passengers while they are using it to make profit with the carpooling program.

So carpool and public transportation discounts typically fall under a low mileage discount offered by an insurance company because using these means of transportation reduces a car's annual mileage. Auto insurance companies often reward drivers who carpool or take public transportation with lower, discounted rates just as they do with those who use a car for only pleasure during the weekends and thus hardly put miles on it.

Insurance companies do not usually offer incentives for carpooling, other than offering you a discount for lower mileage on your car. Incentives for carpooling might be available to you from your employer, city or state though if they are trying to help reduce the number of vehicles on the roadway. For instance a county in New Jersey offered as an incentive gas cards for those who participated in carpooling. Company incentives we have seen include reduced cost or free parking, preferred parking and reward programs.

Though we do not have a list of all auto insurers that offer carpooling that you may receive for sharing a ride to work it is something that you can ask about when obtaining insurance. Inform your agent that you do carpool in case any new discounts come up that may apply to your policy and lower your rates. Also though make sure you ask about low mileage discounts since they are more prevalent in the auto insurance field than car pool discounts.

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