The vehicle on the policy is probably the most important factor when looking for cheaper insurance for business use. Vehicles with lots of speed or power, poor safety features, or high incidents of liability claims will cost substantially more to insure than more modest models.
The table below outlines insurance prices for a handful of the cheapest automobiles to buy coverage for.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V EX 2WD||$608|
|Ford Escape XLS 2WD||$618|
|GMC Sierra SLE Crew Cab 2WD||$657|
|Jeep Wrangler Unlimited Sport 4WD 4-Dr||$677|
|Hyundai Elantra GLS 4-Dr Sedan||$694|
|Toyota Corolla XLE||$702|
|Dodge Grand Caravan CV||$706|
|Ford F-150 XL Crew Cab 2WD||$715|
|Jeep Grand Cherokee Laredo 4WD||$721|
|Toyota RAV4 2WD||$741|
|Honda Accord EX-L 2-Dr Coupe||$754|
|Kia Optima SX||$761|
|Ford Explorer Limited 4WD||$758|
|Chevrolet Malibu LT||$768|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$758|
|Honda Odyssey EX-L W/Rear Entertainment||$761|
|Toyota Camry SE||$767|
|Dodge Ram 3500 Mega Cab SLT 2WD||$766|
|Hyundai Sonata GLS 4-Dr Sedan||$769|
|Chevrolet Silverado LTZ Extended Cab 4WD||$774|
|Volkswagen Jetta SEL 4-Dr Sedan||$779|
|Ford Edge Sport AWD||$774|
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Data based on single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include homeowner, multi-policy, claim-free, multi-vehicle, and safe-driver. Prices do not factor in vehicle garaging location which can modify premium rates substantially.
Looking at the data, we can assume that vehicles like the Honda CR-V, Ford Escape, GMC Sierra, and Toyota Prius are most likely going to be a few of the cheapest vehicles to insure for using your car for business. The cost of auto insurance will be higher anyway just due to the fact that there is more liability exposure for business use, but in general those particular models will most likely have the cheapest car insurance rates that you'll find.
Trying to find reasonably-priced car insurance is not always easy, and finding out which companies have the best insurance rates for business use in Indiana will take even more work. Insurance premiums will probably be slightly higher than the average rate in Indiana attributed to the potential for higher claims that comes with selling coverage for using your car for business, but competitive insurance should be possible if you look hard enough.
Each insurance company uses slightly different criteria to determine rates, so let's take a look at the insurance companies that tend to be cheaper in Indiana. It's important that you understand Indiana insurance rates are determined by lots of factors that control your annual premium. This price variation is why Indiana drivers need to do a thorough rate comparison to find the cheapest auto insurance rates for business use. Prices are determined by many risk factors and can change substantially, so the best company six months ago may now be quite expensive.
Best Cheap Insurance Rates for Business Use
|Rank||Company||Cost Per Year|
|7||Indiana Farmers Mutual||$867|
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Travelers quotes some of the cheapest car insurance rates in Indiana at around $602 each year. Cincinnati Insurance, USAA, Erie, and Western Reserve also make the cut as some of the most economical Indiana auto insurance companies.
In the rate table above, if you are currently insured with Erie and switched to Travelers, you may see savings of about $131. Drivers with Western Reserve may save as much as $236 a year, and The Hartford insureds might cut rates by $253 a year.
These estimates are averaged across all types of insureds and vehicles and are not factoring in a price surcharge for business use. So the company that can offer you the lowest price may not even be in the top 36 companies shown above. That points out the importance of why you need to get rate quotes using your own individual information.
Full coverage or liability only
Saving on insurance is probably important to most drivers, and one of the best ways to buy cheaper insurance for business use in Indiana is to only pay for liability coverage. The illustration below shows the comparison of insurance costs with liability coverage only compared to full coverage. The premium estimates are based on no claims or driving citations, $100 deductibles, marital status is single, and no discounts are taken into consideration.
If the expense is averaged for all age categories, physical damage coverage on your policy costs $2,160 per year more than carrying just liability coverage. Many people question if it's a good idea to buy full coverage. There isn't a steadfast formula of when to exclude comp and collision coverage, but there is a general convention. If the yearly cost of comp and collision coverage is about 10% or more of any settlement you would receive from your insurance company, then it could be time to drop full coverage.
For example, let's assume your vehicle's book value is $9,500 and you have $1,000 deductibles. If your vehicle is damaged in an accident, the most your company would pay you is $8,500 after the policy deductible has been paid. If it's costing you more than $850 annually for your policy with full coverage, then you may want to consider only buying liability coverage.
There are some cases where removing full coverage is not financially feasible. If you still have a lienholder on your title, you have to maintain full coverage in order to prevent your loan from defaulting. Also, if your savings is not enough to buy a different vehicle in the event your current vehicle is totaled, you should not buy liability only.
Discounts on Indiana car insurance
Car insurance companies that provide coverage for business use may also provide discounts that could potentially reduce rates by 35% or more if you meet certain criteria. Larger insurance companies and a partial list of their discounts are outlined below.
- GEICO may have discounts that include driver training, emergency military deployment, federal employee, membership and employees, and daytime running lights.
- MetLife offers premium reductions for defensive driver, good student, accident-free, good driver, and multi-policy.
- Progressive discounts include good student, multi-policy, multi-vehicle, online signing, and homeowner.
- Travelers may offer discounts for payment discounts, good student, new car, multi-policy, continuous insurance, and student away at school.
- SAFECO policyholders can earn discounts including multi-car, anti-lock brakes, safe driver, teen safety rewards, and accident prevention training.
- AAA may include discounts for education and occupation, good driver, multi-car, good student, anti-theft, pay-in-full, and AAA membership discount.
The example below illustrates the comparison of annual premium costs with and without policy discounts. The data assumes a male driver, no violations or accidents, Indiana state minimum liability limits, comp and collision included, and $100 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second shows the rates with passive restraint, marriage, defensive driving course, multiple policy, accident-free, and multiple vehicle discounts applied. When discounts are factored in, the the average yearly reduction on insurance for business use is 28% or $600.
Drive safe and save
In a perfect world, the ideal way to get the best insurance rates in Indiana for using your car for business is to drive cautiously and avoid accidents and traffic citations. The chart below highlights how traffic violations and accident claims can raise insurance costs for different age groups of insureds. The information is based on a single female driver, comp and collision included, $250 deductibles, and no discounts are factored in.
In the previous example, the average cost of an auto insurance policy in Indiana per year with a clean driving record and no accidents is $1,405. Add in one speeding ticket and the average cost rises to $1,592, an increase of $186 each year. Next add two accidents along with the one speeding ticket and the yearly cost of insurance for business use in Indiana jumps again to an average of $3,203. That's an increase of $1,798, or $150 per month, just for not being more responsible behind the wheel!