The words “cheap” and “insurance” really shouldn’t be used together, specifically when trying to find the lowest insurance prices for business use. In an attempt to save some money, let’s go over some things that have an impact on auto insurance rates, and find out if you can shave a little off your next policy.
The make and model of vehicle you are buying coverage for is a large consideration when trying to find the lowest-priced insurance for business use. Vehicles with limited speed and performance, advanced safety features, or a low likelihood of having liability claims will cost substantially less to insure than higher performance models. The information below outlines coverage premiums for a selection of the cheapest vehicles to insure.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Toyota RAV4 Sport 4WD | $1,039 |
| Ford Escape XLT 2WD | $1,075 |
| Honda Accord EX 4-Dr Sedan | $1,081 |
| Honda CR-V LX 4WD | $1,075 |
| Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr | $1,084 |
| Toyota Prius | $1,112 |
| Nissan Altima Hybrid 4-Dr Sedan | $1,121 |
| Chevrolet Equinox LTZ 2WD | $1,112 |
| Honda Civic GX 4-Dr Sedan | $1,146 |
| GMC Sierra 2500HD SLT Crew Cab 4WD | $1,165 |
| Nissan Rogue SL AWD | $1,167 |
| Ford Edge SE AWD | $1,175 |
| Dodge Grand Caravan Hero | $1,188 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $1,211 |
| Honda Odyssey EX W/Rear Entertainment | $1,248 |
| Chevrolet Impala LTZ | $1,252 |
| Toyota Corolla LE | $1,258 |
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Table data represents single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, multi-vehicle, safe-driver, multi-policy, and homeowner. Premium amounts do not factor in vehicle garaging location which can increase or decrease premium rates substantially.
By looking at the data, we can infer that models like the Toyota RAV4, Ford Escape, Honda Accord, and Honda CR-V are likely to be a few of the less-costly vehicles to insure for using your car for business. The price for car insurance will be higher anyway because of the fact that there is more exposure for business use, but overall those particular models will probably have the least expensive rates that you are likely to find.
For using your car for business, one of the big criteria that aid in calculating the amount you pay each year for auto insurance is the neighborhood you call home in Austin. Areas with more people or higher crime rates will most likely have higher rates, whereas areas with less people or fewer weather incidents benefit from lower coverage costs.
The following table shows the most costly cities in Texas for business use to buy car insurance in. Austin is ranked #16 with a yearly premium of $1,659 on average, which is approximately $138 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | McAllen | $1,956 |
| 2 | Dallas | $1,893 |
| 3 | Laredo | $1,889 |
| 4 | Brownsville | $1,870 |
| 5 | Amarillo | $1,858 |
| 6 | Garland | $1,850 |
| 7 | Houston | $1,835 |
| 8 | Grand Prairie | $1,811 |
| 9 | Irving | $1,772 |
| 10 | Mesquite | $1,753 |
| 11 | Pasadena | $1,740 |
| 12 | Lubbock | $1,716 |
| 13 | Beaumont | $1,702 |
| 14 | San Antonio | $1,688 |
| 15 | Carrollton | $1,664 |
| 16 | Austin | $1,659 |
| 17 | Arlington | $1,658 |
| 18 | Corpus Christi | $1,636 |
| 19 | Fort Worth | $1,621 |
| 20 | Plano | $1,608 |
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Prices are estimated as specific location information can decrease or increase coverage rates noticeably.
Discount Austin car insurance rates
Car insurance companies that offer quotes for business use could also offer premium discounts that can reduce rates by 35% or more if you meet eligibility requirements. A list of companies and the discounts they provide include:
- Farm Bureau offers discounts for multi-policy, 55 and retired, safe driver, youthful driver, multi-vehicle, and renewal discount.
- Liberty Mutual discounts include hybrid vehicle, good student, new vehicle discount, preferred payment discount, and multi-car.
- State Farm has discounts for anti-theft, defensive driving training, Steer Clear safe driver discount, multiple autos, good student, and passive restraint.
- Auto-Owners Insurance offers premium reductions for air bags, anti-theft, paperless, safe vehicle, paid in full, safe driver, and company car.
- GEICO may offer discounts for five-year accident-free, anti-theft, military active duty, multi-vehicle, driver training, air bags, and emergency military deployment.
- SAFECO has savings for anti-lock brakes, teen safe driver, homeowner, bundle discounts, drive less, and multi-car.
The illustration below shows the comparison of premium costs with and without discounts applied to the premium. The prices are based on a female driver, no tickets, no at-fault accidents, Texas state minimum liability limits, comp and collision included, and $500 deductibles.
The first bar for each age group shows premium with no discounts. The second bar shows the rates with multiple vehicle, claim-free, accident-free, multiple policy, vehicle safety, and anti-theft discounts applied. When discounts are applied, the average amount saved each year on insurance for business use is 28% or $474.
The chart below demonstrates how choosing different deductibles can influence insurance premiums when getting quotes for cheap insurance for business use. Data assumes a single female driver, full coverage, and no discounts are factored in.
In the chart above, a 50-year-old driver could lower rates by $302 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $456 by selecting a $1,000 deductible. Younger drivers, like the Age 20 chart data, could drop their prices up to $766 every year by selecting a higher deductible.
When increasing deductibles, it will be necessary to have enough savings set aside to cover the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.
Liability rates compared to full coverage
Buying cheaper insurance is the goal of the majority of drivers, and one of the fastest ways to buy cheaper insurance for business use is to only pay for liability coverage. The chart below compares insurance prices with and without full coverage. The prices are based on no claims, a clean driving record, $100 deductibles, single status, and no additional discounts are factored in.
If averaged for all ages, physical damage coverage on your policy costs an additional $2,181 per year more than insuring for liability only. That brings up the question when is it safe to stop buying full coverage. There is no written rule for excluding comp and collision coverage, but there is a general convention. If the annual cost of your full coverage insurance is more than about 10% of the vehicle’s replacement cost less your deductible, then you might consider buying liability only.
There are a few situations where removing full coverage is not advised. If you still have a lienholder on your title, you have to keep full coverage to protect the lienholder’s interest. Also, if your savings is not enough to buy a different vehicle in case of an accident, you should not buy liability only.
Shop around and save
Texas insurance rates are impacted by many things that will increase or decrease the price you pay. Simply having a birthday, increasing deductibles, or getting a few speeding tickets can cause premium changes that can now make some companies affordable when they were higher priced.
In addition, car insurance companies change the rates they charge in Texas as often as every three months in order to be able to pay unexpected claims. An extended period of higher than normal claims may cause increased policy costs, while long-term profits may cause cheaper Austin car insurance rates.
As an example, the data below shows the company with the cheapest car insurance in Austin, TX for a 35-year-old female driver with a clean driving record, no accidents, and solid credit. If we look at prices based on her personal risk profile, Travelers has the cheapest car insurance rates in Austin at $1,107 a year. This is $797 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also make the list of the most affordable Austin, TX auto insurance companies.
The next chart shows rates after we give the driver from the first rate comparison a chargeable accident, poor credit, and a few blemishes on her driving record. Since each auto insurer has their own formula for filing rates in each state, getting updated rate quotes most likely will result in a new list of companies as shown below.
State Farm now has the cheapest rate in Austin with Mercury, Nationwide, Safe Auto, and USAA also being competitive. This example illustrates why it is so important to compare rates to get cheap car insurance quotes for business use. Insurance prices are made up of many factors and change frequently, so the cheapest company the last time you shopped your coverage around may now be quite expensive.