Wouldn’t this article be short if we knew the exact company that has the cheapest insurance for business use? Regrettably, it’s not quite that easy, as there are a lot of unknown elements such as if you want the added protection of full coverage, your age, if you have maintained coverage continuously, and if you are a man or woman, that all have an effect on the price of a policy. The content below covers the different ways to avoid overpaying and will hopefully give the reader some help in finding cheaper rates.
The vehicle model that is being insured is probably the biggest factor when shopping for the cheapest insurance for business use. Vehicles with high performance engines, poor safety features, or a high likelihood of having liability claims will cost substantially more to insure than safer models. The information below illustrates auto insurance prices for some of the most affordable automobiles to buy insurance for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape Limited 2WD||$1,215|
|Toyota Tacoma 4WD||$1,334|
|Ford F-150 XLT Regular Cab 4WD||$1,340|
|Honda Accord LX-P 4-Dr Sedan||$1,361|
|Chevrolet Malibu Hybrid||$1,408|
|Jeep Wrangler Sport 4WD 2-Dr||$1,413|
|Dodge Ram 3500 Crew Cab Laramie 2WD||$1,435|
|Honda CR-V EX 2WD||$1,455|
|Volkswagen Jetta 2.0T 4-Dr Sedan||$1,509|
|GMC Sierra 2500HD SLE Extended Cab 4WD||$1,517|
|Chevrolet Silverado LT Crew Cab 4WD||$1,509|
|Ford Explorer XLT 2WD||$1,527|
|Dodge Ram Crew Cab SLT 2WD||$1,537|
|Jeep Grand Cherokee Laredo 4WD||$1,611|
|Ford Focus S 4-Dr Sedan||$1,690|
|Ford Edge SE AWD||$1,695|
|Chevrolet Impala LTZ||$1,695|
|Hyundai Elantra SE 4-Dr Sedan||$1,704|
|Chevrolet Silverado 2500HD LT Crew Cab 4WD||$1,725|
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Data assumes single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include safe-driver, multi-vehicle, multi-policy, homeowner, and claim-free. Price information does not factor in specific location information which can raise or lower premium rates substantially.
By looking at the data, you can figure that models like the Ford Escape, Toyota Prius, Toyota Tacoma, and Ford F-150 should be the most affordable vehicles to insure for using your car for business. Prices will be higher anyway because of the fact that there is more claim exposure for business use, but generally speaking those vehicles will tend to have the best insurance prices possible.
For using your car for business, one of the more important considerations that are used to help calculate auto insurance rates is where you keep your car in Aurora. Areas with more people or higher crime rates tend to have higher auto insurance costs, whereas more rural areas benefit from lower coverage costs.
The following table sorts the most expensive areas in Colorado for business use in which to purchase auto insurance. Aurora comes in at #4 having an annual price of $1,375 for the average insured, which is approximately $115 monthly.
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Rate information is approximated as the specific garaging location can lower or raise rates considerably.
Comparison of full coverage and liability-only policies
Reducing premiums for auto insurance is important to the majority of drivers, and one of the fastest ways to find cheaper insurance for business use is to buy only liability coverage. The diagram below shows the comparison of car insurance rates with and without physical damage coverage. The rates are based on a clean driving record, no at-fault accidents, $100 deductibles, single status, and no discounts are factored in.
As an average, comprehensive and collision coverage on your policy costs an extra $2,013 per year more than just insuring for liability. Many drivers will wonder if full coverage is worth the money. There is no clear-cut formula that is best for determining when to drop comp and collision coverage, but there is a general convention. If the yearly cost of comp and collision coverage is more than about 10% of the vehicle’s replacement cost less your deductible, then it might be time to buy liability only.
There are some situations where buying only liability insurance is not in your best interest. If you have an outstanding loan on your vehicle, you have to carry full coverage as part of the loan conditions. Also, if your finances do not allow you to purchase a different vehicle in case of an accident, you should not eliminate full coverage.
Types of discounts on Aurora auto insurance rates
Insurance companies that provide coverage for business use may also provide special discounts that could potentially reduce rates by as much as 35% or more if you meet specific eligibility requirements. The best auto insurance companies and their possible discounts are included below.
- Travelers may have discounts that include multi-policy, home ownership, save driver, multi-car, payment discounts, driver training, and student away at school.
- 21st Century offers discounts including driver training, teen driver, air bags, theft prevention, automatic seat belts, early bird, and anti-lock brakes.
- State Farm has discounts for accident-free, driver’s education, good student, passive restraint, multiple autos, anti-theft, and multiple policy.
- GEICO offers premium reductions for anti-theft, driver training, emergency military deployment, defensive driver, and membership and employees.
- SAFECO offers discounts for anti-lock brakes, bundle discounts, homeowner, teen safe driver, safe driver, anti-theft, and multi-car.
- AAA policyholders can earn discounts including multi-car, multi-policy, education and occupation, pay-in-full, anti-theft, AAA membership discount, and good student.
The chart below illustrates the difference between insurance prices with and without some available policy discounts. The price estimates are based on a female driver, no claims or driving citations, Colorado state minimum liability limits, full physical damage coverage, and $1,000 deductibles.
The first bar for each age group shows the price with no discounts. The second shows the rates with defensive driving course, homeowner, anti-theft, vehicle safety, accident-free, and multiple policy discounts applied. When discounts are applied, theaverage yearly reduction on auto insurance for business use is 28% or $392.
Compare rates to save
Aurora auto insurance rates are based on many factors that control the price you pay. Simply having a birthday, buying higher coverage limits, or getting a reckless driving citation may cause policy rate changes resulting in some companies being cheaper than competitors. And not only may your rating factors change, but insurers change their prices as often as every quarter in order to remain profitable. A period of higher than normal claims may cause rate hikes, while profitable underwriting may result in lower-cost Aurora car insurance rates.
As an example, the bar chart below shows the companies that have the cheapest car insurance in Aurora, CO for a 30-year-old female driver with no accidents or violations, and great credit. If we compare prices based on her current rating profile, The Hartford has the lowest car insurance rates in Aurora at $1,021 a year. This is $557 less than the average policy premium paid by Colorado drivers of $1,578. Grange, USAA, GEICO, and Nationwide are also included in the most affordable Aurora, CO auto insurance companies.
The next chart shows rates after we give the driver from above an accident surcharge, less-than-perfect credit, and a traffic ticket or two. Since each auto insurance company has a proprietary formula for determining rates, comparing prices will most likely result in a different ranking of affordable companies as shown below.
Auto-Owners now has the lowest price on auto insurance in Aurora with State Farm, American Family, Progressive, and Amica completing the list. This example shows why Aurora drivers need to compare many different companies to find the best car insurance rates for business use. Auto insurance prices are determined by many risk factors and change dramatically, so the cheapest company six months ago may now be priced much higher than other options.
Tips to find the cheapest insurance for business use
Lowering your rates is not difficult, and here are some of the better money-saving solutions that can help Colorado drivers buy cheap auto insurance.
- Buy vehicles with five-star safety ratings
- At-fault accidents can raise rates significantly
- Avoid getting citations and tickets
- Do not pay for comprehensive and collision coverage on older vehicles
- Good credit can mean cheaper rates
- Higher deductibles save money
- Compare price quotes at least once a year
The last idea is very necessary, as was emphasized in this write-up. Prices charged by auto insurers in Aurora change constantly, so don’t hesitate to change to a new company if a more affordable rate is found.
Being loyal to a particular company is commendable, but it’s not a good idea if that dedication is costing a lot of money. If you have a few minutes, compare rates to find cheaper insurance for business use.