The vehicle you are buying coverage for is one of the biggest factors when shopping for the most affordable insurance for business use. Vehicles with limited top-end speed, good crash test ratings, or a low likelihood of liability claims will cost much less to insure than fast, unsafe models. The next table shows auto insurance costs for a selection of the most budget-friendly automobiles to insure in California.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Honda Accord EX-L 4-Dr Sedan||$1,096|
|Ford Explorer XLT AWD||$1,137|
|Dodge Grand Caravan SE||$1,142|
|Honda CR-V EX 2WD||$1,158|
|Toyota RAV4 Sport 2WD||$1,199|
|Ford Focus SEL 4-Dr Sedan||$1,238|
|Ford Escape XLS 4WD||$1,242|
|Toyota Corolla XLE||$1,260|
|Kia Optima LX||$1,283|
|Chevrolet Silverado 2500HD LTZ Crew Cab 4WD||$1,291|
|Ford Fusion SE 4-Dr Sedan||$1,289|
|GMC Sierra SLE Regular Cab 4WD||$1,283|
|Toyota Tacoma 4WD||$1,299|
|Honda Odyssey EX W/Rear Entertainment||$1,347|
|Ford Edge Limited 2WD||$1,357|
|Hyundai Elantra SE Touring Station Wagon||$1,350|
|Chevrolet Silverado Crew Cab Hybrid 4WD||$1,370|
|Chevrolet Equinox LS AWD||$1,372|
|Chevrolet Impala LT||$1,378|
|Jeep Wrangler Unlimited Sport 2WD 4-Dr||$1,395|
|Ford F-150 Lariat Super Cab 4WD||$1,400|
|Chevrolet Malibu LT||$1,406|
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Table data assumes single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include claim-free, multi-vehicle, multi-policy, homeowner, and safe-driver. Estimates do not factor in specific location information which can influence price quotes greatly.
Based upon the rates shown, you can conclude that vehicles like the Honda Accord, Ford Explorer, Dodge Grand Caravan, Honda CR-V, and Toyota RAV4 are some of the most affordable vehicles to insure for using your car for business. The price for car insurance will be higher anyway just due to the fact that there is more risk for business use, but in general those makes and models will have the lowest insurance prices compared to other vehicles.
Determining which insurers offer the cheapest insurance rates for business use will involve more time than just quoting one company’s rates. Every insurance company uses a slightly different approach for setting rates, so to begin we’ll rank the most affordable insurance companies in Riverside.
Best Cheap Insurance Rates for Business Use
|Rank||Company||Cost Per Year|
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USAA generally has some of the most affordable car insurance rates in Riverside at around $1,143 each year. Wawanesa, CSAA, Nationwide, and Century National would also be considered some of the lowest-priced Riverside, CA insurance companies.
As depicted above, if you have coverage with Nationwide and switched to USAA, you might realize a yearly savings of approximately $83. Insureds with Century National may save as much as $83 a year, and 21st Century insureds might lower prices by $223 a year.
It’s important to note that these prices are averaged for all ages of drivers and types of vehicles and do not take into consideration an exact location for business use. So the auto insurance company that can offer you the best rate may not even be in the top 24 companies in the list above. That point stresses why you need to get auto insurance quotes using your own driver information and specific vehicle type.
Full coverage rates compared to liability-only
Finding the cheapest insurance is probably important to the majority of drivers, and one common way to reduce the cost of insurance for business use is to not pay for full coverage. The diagram below shows the comparison of premium costs with full coverage and liability only. The premiums assume a clean driving record, no claims, $250 deductibles, single status, and no discounts are applied.
As an overall average, comprehensive and collision coverage on your policy costs $2,558 per year more than carrying just liability coverage. That amount may make you wonder if buying full coverage is worth the money. There is no written rule of when to drop physical damage coverage, but there is a general guideline you can use. If the yearly cost of full coverage is 10% or more of the settlement you would receive from your company, then it might be time to buy liability only.
For example, let’s say your vehicle’s book value is $11,000 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most you would get paid by your company is $10,000 after you pay the deductible. If you are paying more than $1,000 annually for physical damage coverage, the it may be a good time to stop paying for full coverage.
The illustration below demonstrates how choosing different deductibles can impact insurance rates when searching for cheap insurance for business use. The price estimates are based on a single female driver, full coverage, and no discounts are applied to the premium.
The chart above illustrates that a 40-year-old driver could reduce rates by $350 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $530 by using a $1,000 deductible. Young drivers, such as the 20-year-old example, could save $888 annually just by choosing larger deductibles.
When insureds make the decision to increase the deductibles on their policy, it will be important to have plenty of discretionary funds to cover the extra out-of-pocket expense that deters many people from opting for higher deductibles.
Your cheap policy may actually be overpriced
California insurance rates are impacted by many things that may substantially change the price of your policy. Simply turning a year older, buying another vehicle, or getting a couple of tickets may prompt premium changes that can make some companies more affordable than competitors.
In addition, insurers change rates every year or even multiple times each year to adjust for unexpected claims or profits. A period of higher than normal claims may cause increased policy costs, while a better claims history may cause more affordable Riverside car insurance rates.
For example, the graph below demonstrates which company has the cheapest car insurance in Riverside, CA for a 35-year-old male driver with no accidents, a clean driving record, and a high credit rating. If we compare prices based on his personal profile, USAA may offer the lowest car insurance rates in Riverside at $1,280 a year. This is $371 less than the average rate paid by California drivers of $1,651. Wawanesa, Century National, CSAA, and Nationwide are the rest of the top five cheapest Riverside, CA auto insurance companies.
In the next rate comparison, we’ll give the driver from above an accident surcharge, a lower credit score, and a traffic citation. Since every insurance provider has their own unique process for setting rates, comparing quotes will most likely result in a substantially altered list of the cheapest car insurance companies in Riverside as shown below.
Mercury now has the cheapest auto insurance in Riverside with Grange, Allstate, Progressive, and GEICO also having competitive pricing. This demonstrates why consumers need to perform a complete rate comparison when trying to get the most budget-friendly auto insurance quotes for business use.
Insurance prices consist of many different factors and can change substantially, so the best price the last time you shopped around may now be quite expensive.
How to find economical auto insurance for business use
Here are some money-saving solutions that can help California drivers locate cheaper car insurance.
- Higher credit ratings may save you money
- Buy vehicles with good safety ratings
- Maintain a clean driving record
- Avoid at-fault accidents and claims
- Higher deductibles save money
- Save money by only buying liability coverage for older vehicles
- Compare rate quotes often
The last idea is incredibly significant, as was pointed out in the prior article. Auto insurance prices can be modified anytime, so drivers shouldn’t be resistant to buy a different policy if a more affordable price is available.
Having a favorite company is fine, but it’s not recommended if that faithfulness ends up costing you hundreds of dollars year after year. It only take a few minutes to compare prices to find cheaper car insurance for business use in Riverside.
If you have questions and prefer to have a professional recommendation when comparing insurance rates for using your car for business, the agents below are a good start to answer your questions and help you decide which coverages are best. To locate a Riverside insurance agent nearest to you, click the button at the bottom of the list or click here to get price quotes now.
- Insurance Incorporated – Woodcrest
18791 Van Buren Boulevard Suite C – Riverside, CA 92508 – (951) 780-4075
- Farmers Insurance – Dominique Tran
10800 Hole Ave #3 – Riverside, CA 92505 – (951) 343-3408
- Jay Pogue Insurance- Riverside Ca
6200 Pegasus Dr #1 – Riverside, CA 92503 – (951) 785-8521
- Farmers Insurance – Juan Zaragoza
3333 Central Ave b – Riverside, CA 92506 – (951) 367-1490