The words “bargain” and “insurance” really don’t belong together, specifically when you are shopping around for the best car insurance for a company car. Because it’s not cheap, let’s learn about some of the things that influence auto insurance prices, and find out if you can take the bite out of your next policy.
The car, truck, or SUV you are insuring is one of the primary factors that determines whether or not you find the cheapest auto insurance for a company car. Vehicles with reasonable performance levels, a plethora of safety features, or a positive history of liability claims will cost significantly less to insure than fast, unsafe models.
The table below presents coverage prices for the most cost-effective vehicles to insure.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $1,228 |
| Ford Escape XLS 4WD | $1,385 |
| Honda Accord EX 4-Dr Sedan | $1,395 |
| Chevrolet Silverado LS Regular Cab 2WD | $1,453 |
| Toyota Camry LE | $1,455 |
| Toyota RAV4 Sport 4WD | $1,461 |
| Hyundai Elantra SE Touring Station Wagon | $1,463 |
| Ford Edge SE 2WD | $1,470 |
| Ford Explorer Limited 2WD | $1,483 |
| Toyota Prius | $1,493 |
| Honda Odyssey LX | $1,523 |
| GMC Sierra SLE Regular Cab 4WD | $1,560 |
| Dodge Grand Caravan CV | $1,565 |
| Ford Fusion Sport 4-Dr Sedan | $1,560 |
| Volkswagen Jetta 2.0T Station Wagon | $1,583 |
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Prices above based on single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, multi-policy, safe-driver, multi-vehicle, and homeowner. Price information does not factor in specific Houston, TX garaging location which can modify price quotes significantly.
Looking at the rates, we can infer that makes and models like the Honda CR-V, Ford Escape, and Honda Accord are the most economical vehicles to insure for your employer’s vehicle.
One of the many components that are used to help calculate car insurance rates is where you normally keep your vehicle in Houston. More densely populated places tend to have higher auto insurance costs, whereas areas with fewer weather claims and lower vehicle theft rates have the luxury of cheap car insurance rates.
The table below rates the most expensive areas in Texas for a company car to buy car insurance in. Houston is ranked #3 with an annual cost of $1,891 on average, which is approximately $158 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | McAllen | $1,996 |
| 2 | Dallas | $1,911 |
| 3 | Houston | $1,891 |
| 4 | Brownsville | $1,851 |
| 5 | Amarillo | $1,840 |
| 6 | Laredo | $1,833 |
| 7 | Garland | $1,832 |
| 8 | Pasadena | $1,812 |
| 9 | Grand Prairie | $1,757 |
| 10 | Mesquite | $1,753 |
| 11 | Irving | $1,736 |
| 12 | Arlington | $1,709 |
| 13 | Beaumont | $1,702 |
| 14 | San Antonio | $1,688 |
| 15 | Lubbock | $1,682 |
| 16 | Austin | $1,676 |
| 17 | Carrollton | $1,664 |
| 18 | Corpus Christi | $1,636 |
| 19 | Plano | $1,624 |
| 20 | Fort Worth | $1,621 |
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Rate quotes are approximated as specific Houston garaging address can change insurance rates substantially.
Finding out which company quotes the best insurance rates for a company car will involve a little more effort than just getting one or two price quotes.
Every insurance company uses a little different formula for setting rates, so let’s examine the overall cheapest insurance companies in Houston. It’s important that readers know that Texas insurance rates are influenced by many factors which can significantly increase or decrease the cost of having a policy. Simply having another birthday, increasing deductibles, or getting into an accident can cause premium changes that may make certain companies more affordable than the competition.
Best Insurance Companies in Texas
Travelers generally has some of the lowest car insurance rates in Houston at around $1,010 annually. USAA, Texas Farm Bureau, Germania Mutual, and Esurance would also make the list of some of the lowest-priced Houston, TX insurance companies.
As shown above, if you are a customer of Texas Farm Bureau and switched to Travelers, you may see savings of in the vicinity of $201. Drivers with Germania Mutual may save as much as $234 a year, and Esurance customers might realize rate reductions of up to $355 a year.
Bear in mind that those prices are averages for all types of drivers and the different vehicles they drive and and are not calculated with an exact location for a company car. So the insurer that can offer the best rates for your situation may not even be in the top 23 companies in the list above. That points out the importance of why you need to get auto insurance quotes using your own personalized driver profile and vehicle information.
The illustration below shows how choosing a deductible can increase or decrease annual premium costs when researching cheap insurance for a company car. The costs are based on a married male driver, comprehensive and collision coverage, and no discounts are applied to the premium.
As shown above, a 30-year-old driver could cut expenses by $352 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $534 by using a $1,000 deductible. Youthful drivers, like the 20-year-old, could drop their prices up to $1,060 each year just by choosing higher deductibles when buying full coverage.
If you do make the decision to raise your deductibles, it will be important to have enough savings set aside to allow you to pay the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
Finding the top insurance company can be challenging considering how many different companies there are to choose from in Texas. The ranking information listed below could help you pick which insurers you want to consider buying from. These ratings include companies that insure vehicles across America, so smaller companies are not taken into consideration for these rankings.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| Mercury Insurance | 97 | 96 | 88 | 89% | A+ | 93.4 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
| Esurance | 86 | 90 | 94 | 90% | A+ | 89.5 |
| The General | 86 | 93 | 89 | 84% | A- | 88.2 |
| GEICO | 79 | 89 | 95 | 87% | A++ | 87.8 |
| Titan Insurance | 86 | 82 | 92 | 86% | A+ | 86.5 |
| 21st Century | 86 | 82 | 90 | 84% | A | 86.4 |
| Liberty Mutual | 79 | 87 | 95 | 78% | A | 85.3 |
| Farmers Insurance | 77 | 80 | 80 | 84% | A | 80.3 |
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Data Source: Insure.com Best Car Insurance Companies
The benefits of price comparisons
Houston insurance rates are calculated based on many things that control the cost of coverage. Improving your credit score, marrying your spouse, or getting a ticket for careless driving can trigger changes in premium that may make certain companies cheaper than before. Not only that, but insurance companies amend premium rates at least once a year to reflect underwriting profits or losses. Heavier than normal losses may result in higher prices, while a lower level of claims may produce lower-cost Houston car insurance rates.
For instance, the graph below analyzes the cheapest car insurance in Houston, TX for a 45-year-old female driver with no accidents, a clean driving record, and good financial standing. When comparing rates based on her personal profile, Travelers may have the cheapest car insurance rates in Houston at $1,313 a year. This is $591 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are the remainder of the most affordable Houston, TX auto insurance companies.
The example below compares rates after we give the driver in the first example some claims, a little lower credit rating, and a speeding citation. Because each insurer has a different formula for establishing rates, comparing quotes may result in a different ranking of companies as shown below.
USAA now has the lowest price on auto insurance in Houston, TX with State Farm, Mercury, Safe Auto, and Nationwide also having competitive pricing. This example proves why it is so important to compare rates when trying to get cheap insurance quotes for a company car.
Prices are determined by many risk factors and change dramatically, so the best price six months ago may now be one of the higher cost companies.