Wouldn’t life be great if we could just give you the name of the best company that has the cheapest car insurance rates for business use? Unfortunately, it’s not that simple as there are many unknown factors like whether you are male or female, what liability limits you need, and if you are a homeowner. In this article, we will cover the best ways to avoid paying too much and hopefully give you enough understanding to have a good start in finding the cheapest car insurance.
For using your car for business, one of the largest things that help determine insurance cost is where you keep your vehicle. Regions with more people or even just more weather-related claims tend to have more expensive auto insurance rates, whereas areas with less people or fewer weather incidents benefit from lower coverage costs.
The illustration below lists the highest-priced areas in Texas for business use to buy an auto insurance policy in. Houston is ranked at #6 with an annual cost of $1,835 for the average insurance policy, which is about $153 each month.
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Rate information is approximated as the specific garaging location can lower or raise rates noticeably.
The make and model of vehicle driven is one of the biggest factors when trying to find economical insurance for business use. Vehicles with more horsepower, poor crash test ratings, or high incidents of liability claims will cost much more to insure than more modest models.
The next list shows car insurance rates for a selection of the most economical vehicles to insure in Texas.
|Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V LX 4WD||$1,301|
|Chevrolet Impala LT||$1,342|
|Dodge Grand Caravan Hero||$1,349|
|Toyota RAV4 Sport 4WD||$1,342|
|Ford Explorer Eddie Bauer AWD||$1,368|
|Honda Odyssey EX-L W/Rear Entertainment||$1,412|
|Ford Escape Limited 2WD||$1,424|
|Chevrolet Equinox LTZ 2WD||$1,439|
|Hyundai Sonata GLS 4-Dr Sedan||$1,448|
|Jeep Wrangler Unlimited Rubicon 4WD 4-Dr||$1,484|
|Toyota Camry Hybrid||$1,535|
|Toyota Tacoma Double Cab 4WD||$1,542|
|GMC Sierra SL Extended Cab 2WD||$1,549|
|Dodge Ram 2500 Crew Cab ST 4WD||$1,559|
|Ford F-150 Lariat Crew Cab 2WD||$1,569|
|Ford Edge SEL AWD||$1,615|
|Toyota Camry XLE||$1,622|
|Chevrolet Silverado 2500HD LTZ Crew Cab 2WD||$1,629|
|Volkswagen Jetta SEL 4-Dr Sedan||$1,649|
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Above prices assume single female driver age 50, 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 estimates do not factor in zip code location which can lower or raise price quotes significantly.
Looking at the numbers, we can assume that makes and models like the Toyota Prius, Honda CR-V, and Chevrolet Impala are a few of the most budget-friendly vehicles to insure for using your car for business. The price for an auto insurance policy will be more expensive because there is more inherent risk for business use, but in general those particular models will probably have the lowest insurance prices compared to all other vehicles.
Finding out which company offers the cheapest car insurance rates for business use will involve a bit more effort in order to find the most economical policy. Each insurer used slightly different criteria for determining rates, so let’s rank the car insurance companies that tend to have lower prices in Houston, TX.
Find the Best Cheap Insurance for Business Use
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,235|
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Travelers has some of the most affordable car insurance rates in Houston at around $1,021 each year. This is $883 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty would also be considered some of the lowest-priced Houston, TX insurance companies.
As depicted above, if you are insured with Germania Mutual and switched to Travelers, you could see savings of approximately $273. Customers with California Casualty might save as much as $375 a year, and Esurance policyholders might reduce prices by as much as $386 a year.
Bear in mind that those policy rates are averages across all drivers and vehicles and do not factor in a vehicle location for business use. So the auto insurance company that fits you best may not even be in the list above. That is why you need to get car insurance quotes using your own specific driver information and vehicle.
The chart below demonstrates how deductibles can influence insurance prices when trying to find cheap insurance for business use. The prices are based on a single male driver, full physical damage coverage, and no discounts are applied to the premium.
As shown above, a 50-year-old driver could lower rates by $314 a year by switching from a $100 deductible up to a $500 deductible, or save $472 by using a $1,000 deductible. Young drivers, like the 20-year-old category, could reduce their rates up to $1,026 annually just by choosing higher deductibles. When choosing a higher deductible, it’s a good idea to have enough funds in savings to enable you to pay the extra out-of-pocket expense. That is the one drawback of using higher deductibles.
Types of discounts on Houston insurance rates
Car insurance companies that provide policies for business use may have premium discounts that could lower prices by as much as 35% or more if you meet eligibility requirements. Companies and their offered discounts include:
- State Farm offers discounts for Drive Safe & Save, driver’s education, student away at school, Steer Clear safe driver discount, good student, accident-free, and multiple autos.
- GEICO offers discounts including multi-vehicle, federal employee, anti-lock brakes, military active duty, and driver training.
- Liberty Mutual policyholders can earn discounts including new vehicle discount, good student, teen driver discount, newly married, and exclusive group savings.
- The Hartford has savings for defensive driver, vehicle fuel type, driver training, air bag, anti-theft, and bundle.
- MetLife has discounts for accident-free, multi-policy, claim-free, good student, defensive driver, and good driver.
- Progressive includes discounts for online signing, online quote discount, multi-vehicle, continuous coverage, multi-policy, good student, and homeowner.
The illustration below illustrates the comparison of insurance costs with and without discounts being applied to the rates. The data is based on a male driver, no violations or claims, Texas state minimum liability limits, comp and collision included, and $250 deductibles. The first bar for each age group shows the price with no discounts. The lower bar shows the rates with multiple policy, marriage, homeowner, passive restraint, anti-theft, and claim-free discounts applied. When drivers qualify for the discounts, the average amount saved each year on car insurance for business use is 28% or $552.
Here’s why price comparisons are so important
Texas car insurance rates are determined by lots of factors that can increase the cost of your policy. Simply having another birthday, buying a different vehicle, or getting a few speeding tickets may generate price changes resulting in some companies being affordable when they were higher priced.
Not only may your risk profile change, but companies change the rates they charge in Texas as needed in order to offset underwriting gains or losses. Higher than normal claims may result in more expensive premiums, while profitable underwriting can cause lower-cost Houston car insurance rates.
To illustrate this point, the bar chart below shows a variety of companies that have the cheapest car insurance in Houston, TX for a 45-year-old female driver with no violations or accidents, and great credit. When quoting prices based on her current situation, Travelers might offer the best car insurance rates in Houston at $1,221 each year. This is $683 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty are also included in the top five cheapest Houston, TX auto insurance companies.
Let’s now give the driver from the above example a claim, a lower credit score, and a speeding ticket. Since each insurance company uses their own formula to determine rates, comparing quotes could now result in a substantially altered list of affordable Houston car insurance companies as shown below.
State Farm now has the cheapest auto insurance in Houston with Mercury, Nationwide, Safe Auto, and USAA also being competitive. This example illustrates why Texas drivers need to shop around with many companies when trying to find cheap insurance rates for business use. Prices consist of many things and change frequently, so the best price the last time you compared rates may now be quite expensive.
How to find economical auto insurance for business use
Here are some money-saving suggestions that can help Texas drivers buy low-cost coverage.
- Buying your home and auto policies from the same company can earn a discount
- Raise comprehensive and collision coverage deductibles
- If possible, pay for small claims out-of-pocket
- Don’t waste money on full coverage for older vehicles
- Get cheaper liability coverage by choosing a safer vehicle
- Good credit can mean cheaper rates
- Comparison shop at least once a year
The final tip is notably vital, as was discussed in the prior article. Prices charged by car insurance companies in Houston vary greatly, so drivers shouldn’t hesitate to switch to a new company if a lower price can be found. Many consumers stick with the same company and that’s fine, but it’s not a great idea if that stubbornness costs you money that could be going to better use. It only takes a couple minutes to compare prices and find cheaper insurance for business use.
The insurance agencies below can aid you in deciding which auto insurance policy fits you best, since some drivers aren’t sure which coverage they need and prefer to get help from a professional when shopping for cheaper insurance for using your car for business. It can be time-consuming to find the cheapest rates, so a licensed agent can give satisfaction knowing your policy gives you adequate asset protection. To locate a Houston auto insurance agent by location nearest to you, click the button at the bottom.
Deborah A. Olson Insurance Agency, Inc.
10592 Fuqua St – Houston, TX 77089 – (281) 481-1903
210 W Greens Rd # B – Houston, TX 77067 – (281) 872-6100
Oscar’s Insurance Agency
5921 S Gessner Rd – Houston, TX 77036 – (713) 271-8889
Ben Speer – State Farm Insurance Agent
1110 E NASA Pkwy Ste 300 – Houston, TX 77058 – (281) 204-8282
Anna Santa Ana – State Farm Insurance Agent
7710 Cherry Park Dr d – Houston, TX 77095 – (281) 550-0333