The words “bargain” and “insurance” really shouldn’t be used in the same sentence, in particular when you are shopping around for the lowest insurance prices for business use. Because of the high cost, let’s start the ball rolling by going over a few of the factors that have a considerable impact on insurance rates, and come up with some ideas to lower the price of your next policy.
The type of vehicle you are buying coverage for is probably the biggest factor when quoting cheap car insurance for business use. Vehicles with high performance engines, poor safety ratings, or a high likelihood of having liability claims will cost much more to insure than more economical and safe models. The table below features coverage rates for the most cost-effective vehicles to buy coverage for.
|Vehicle||Estimated Cost for Full Coverage|
|Ford F-150 STX Regular Cab 2WD||$1,729|
|Ford Edge SEL AWD||$1,825|
|Ford Escape Limited 2WD||$1,845|
|Chevrolet Equinox LT AWD||$1,862|
|Toyota RAV4 2WD||$1,867|
|Ford Explorer Eddie Bauer 4WD||$1,897|
|Honda Accord LX-P 4-Dr Sedan||$1,931|
|Toyota Corolla LE||$1,959|
|Honda CR-V EX-L 4WD||$1,976|
|GMC Sierra 2500HD SLE Extended Cab 4WD||$1,993|
|Nissan Altima Hybrid 4-Dr Sedan||$1,999|
|Hyundai Sonata SE 4-Dr Sedan||$2,096|
|Chevrolet Malibu Hybrid||$2,133|
|Chevrolet Impala LT||$2,140|
|Chevrolet Silverado 3500HD LT Crew Cab Diesel 2WD||$2,161|
|Dodge Ram Crew Cab TRX 4WD||$2,167|
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Premium data assumes single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include safe-driver, homeowner, multi-policy, multi-vehicle, and claim-free. Premium costs do not factor in your specific Memphis, TN location which can revise prices substantially.
Looking at the data, cars like the Ford F-150, Ford Edge, and Ford Escape will definitely be some of the most economical vehicles to insure for using your car for business. The price for car insurance will tend to be higher because of the fact that there is more claim risk for business use, but overall those particular vehicles will most likely have the cheapest rates compared to all other vehicles.
Finding decent, reasonably-priced insurance is tough enough, and determining which insurers offer the cheapest auto insurance rates for business use will require a little more work. Each insurance company uses slightly different criteria to set their prices, so let’s begin by examining the auto insurance companies that tend to be cheaper in Memphis, TN.
It’s important that readers know that Memphis, TN auto insurance rates are based on many factors that control the cost of your policy. Price variation is why it is critical to compare rates to find the best car insurance quotes for business use. Auto insurance prices are made up of many things and can change substantially, so the cheapest option when you last compared rates may now be wasting a lot of money.
Best Cheap Insurance Rates for Business Use
Utica National may offer some of the cheapest car insurance rates in Memphis at around $760 a year. This is $568 less than the average premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and USAA also make the cut as some of the best Memphis, TN car insurance companies.
As depicted above, if you are currently insured with Penn National and switched to Auto-Owners, you could realize an annual premium reduction of upwards of $72. Tennessee drivers with USAA may save as much as $93 a year, and Tennessee Farmers customers might lower prices by $115 a year.
Understand that those premium estimates are averages across all drivers and vehicles and are not factoring in a specific zip code for business use. So the auto insurance company that fits your needs best may not even be in the top 30 companies in the list above. That’s why you need to compare as many prices as possible using your own specific driver information and vehicle.
For using your car for business, one of the more important considerations that are used to help calculate auto insurance rates is where your residence is in Memphis. Areas with more people or even just a higher incidence of claims will most likely pay more, whereas areas with less crime or weather claims have the luxury of lower rates.
The following table lists the most costly cities in Tennessee for business use to buy auto insurance in. Memphis ranks #1 with a yearly premium of $1,505 for the average policy, which is approximately $125 monthly.
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Rate quotes are estimated as the garaging address in Memphis can increase or decrease premium rates greatly.
Cost of full coverage in Memphis
Reducing the cost of auto insurance is the goal of the majority of people, and an effective way to lower the cost of insurance for business use is to buy only liability coverage. The diagram below shows the difference between insurance rates with full physical damage coverage and with liability coverage only. The premiums are based on no claims, a clean driving record, $250 deductibles, drivers are single, and no discounts are applied to the premium.
If we average the cost for ages 20 through 70, physical damage insurance costs an extra $2,030 per year more than just buying liability insurance. That may make you wonder if you should buy full coverage. There is no definitive formula of when to drop physical damage coverage on your policy, but there is a general school of thought. If the yearly cost of comp and collision coverage is more than 10% of the replacement cost of your vehicle minus the policy deductible, then it might be time to consider dropping full coverage.
There are some circumstances where removing full coverage is not advised. If you haven’t satisfied your loan, you have to keep full coverage in order to prevent your loan from defaulting. Also, if your finances do not allow you to purchase a different vehicle in case of an accident, you should keep full coverage on your policy.
Drive responsibly or pay higher rates
In a perfect world, the ideal way to snag the best auto insurance rates for using your car for business is to be an attentive driver and avoid getting tickets or having accidents. The chart below highlights how traffic violations and at-fault fender-benders raise annual premium costs for different ages of insureds. The prices are based on a single female driver, full coverage, $500 deductibles, and no discounts are applied to the premium.
The data charted above shows the average cost of a car insurance policy in Tennessee per year with no accidents and a clean driving record is $1,731. Get written up for one speeding ticket and the average cost jumps to $1,965, an increase of $234 each year. Now include two accidents along with the one speeding ticket and the yearly cost of auto insurance for business use goes up to an average of $4,064. That’s an increase of $2,333, or $194 per month, just for not keeping your driving record clean!
The example below demonstrates how choosing different deductibles can change annual premium costs when searching for cheap insurance for business use. The rate quotes are based on a single female driver, full physical damage coverage, and no discounts are factored in.
A 50-year-old driver could reduce rates by $274 a year by increasing from a $100 deductible to a $500 deductible, or save $414 by selecting a $1,000 deductible. Youthful drivers, like the Age 20 chart data, have the ability to save $696 or more just by using higher deductibles. When increasing deductibles, it will be important to have additional funds in a savings account to pay the extra out-of-pocket expense. That is the one drawback of using higher deductibles.
How to find low-cost car insurance for business use
It’s not impossible to find cheaper rates, and here are some thrifty ideas that can help you buy cheaper coverage.
- Avoid at-fault accidents and claims
- Save money by staying claim-free
- Raise your deductibles
- Drop full coverage on older vehicles
- Keep your driving record clean
- Shop around and save
That last piece of advice is remarkably important, as was stressed in the article above. Prices vary greatly, so don’t be unwilling to buy a different policy if a better rate can be found. Having a favorite company is great, but it’s not a good idea if that inflexibility results in costing you big bucks every year. It only takes a couple minutes to compare rates and find cheaper insurance for business use in Memphis.
If you have coverage questions and would like to have some professional guidance when trying to find lower insurance rates for using your car for business, the agents shown below can answer your questions and help you decide which policy fits your needs best.
To find a Memphis insurance agency close to where you live, click the button below the list.
Lipscomb and Pitts Insurance LLC
2670 Union Ave – Memphis, TN 38112 – (901) 321-1000
Henry Hooper II – State Farm Insurance Agent
348 S Main St – Memphis, TN 38103 – (901) 575-0001
Ulysses Cosby – State Farm Insurance Agent
248 Cooper St – Memphis, TN 38104 – (901) 276-1044
Nationwide Insurance: Bennita J Wade Agency
1503 Union Ave Ste 220 – Memphis, TN 38104 – (901) 276-8571
GEICO Insurance Agent
420 S Germantown Pkwy #109 – Cordova, TN 38018 – (901) 761-5240