The type of vehicle driven is one of the primary factors when looking for the most affordable auto insurance for business use. Vehicles with high performance features, poor crash test ratings, or an increased likelihood of liability claims will cost more to insure than safer, lower-performance models. The list below presents insurance premiums for some of the cheapest automobiles to insure.
|Make and Model||Estimated Cost for Full Coverage|
|Honda Accord LX-P 4-Dr Sedan||$1,409|
|Ford Escape XLT 4WD||$1,441|
|Dodge Grand Caravan SE||$1,577|
|Honda CR-V EX-L 4WD||$1,630|
|Honda Odyssey EX W/Rear Entertainment||$1,633|
|Volkswagen Jetta 2.0T Station Wagon||$1,649|
|Jeep Grand Cherokee Laredo 4WD||$1,665|
|Chevrolet Impala LT||$1,670|
|Chevrolet Malibu LS||$1,665|
|GMC Sierra SLE Crew Cab 2WD||$1,674|
|Chevrolet Equinox LS 2WD||$1,665|
|Ford Explorer Limited 2WD||$1,695|
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Price data assumes single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, multi-policy, homeowner, claim-free, and multi-vehicle. Premium amounts do not factor in specific zip code location which can alter prices significantly.
Based upon these rates, we can presume that models like the Honda Accord, Ford Escape, and Toyota Prius will definitely be the more affordable vehicles to insure for using your car for business. Car insurance rates will tend to be higher because there is more claim risk for business use, but overall those specific models will tend to have the least expensive rates compared to all other vehicles.
One of the more important considerations that help determine auto insurance rates is where you live. More populated areas tend to have more expensive auto insurance rates, whereas less populated areas tend to receive slightly lower rates.
The next table ranks the most costly cities in Alaska for business use to purchase a policy in. Anchorage is ranked #4 with an annual cost of $1,256 for the average insured, which is approximately $105 per month.
|Rank||City||Average Per Year|
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Premium costs are estimated as the specific garaging location can revise price quotes significantly.
Does it make sense to buy full coverage?
Finding cheaper auto insurance should be important to most vehicle owners, and one easy way to save on the cost of insurance for business use is to only buy liability insurance. The example below shows the difference between car insurance rates with and without full coverage. Data assumes no claims, a clean driving record, $500 deductibles, drivers are not married, and no discounts are factored in.
Averaged for all ages 20 through 70, full coverage costs an additional $1,288 per year more than insuring for liability only. Many drivers may wonder if buying full coverage is a waste of money. There is no set rule of when to drop full coverage, but there is a guideline you can use. If the annual cost of your full coverage insurance is more than around 10% of replacement cost minus your deductible, then you might consider buying liability only.
For example, let’s say your vehicle’s replacement value is $11,000 and you have $1,000 deductibles. If your vehicle is damaged in an accident, the most your company would pay you is $10,000 after the deductible is paid. If premiums are more than $1,000 annually for full coverage, then you might want to think about dropping full coverage.
There are some cases where dropping full coverage is not financially feasible. If you still have a lienholder on your title, you are required to maintain full coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should not eliminate full coverage.
Get discount Anchorage auto insurance
Insurance companies that offer quotes for business use may also give you rate discounts that could reduce prices by 25% or more if you meet certain criteria. A list of auto insurance companies and a summarized list of policyholder discounts include:
- Farm Bureau may have discounts that include safe driver, multi-policy, driver training, renewal discount, and multi-vehicle.
- State Farm offers premium reductions for passive restraint, driver’s education, Drive Safe & Save, student away at school, multiple autos, and good driver.
- Progressive may include discounts for multi-vehicle, good student, online quote discount, multi-policy, online signing, and homeowner.
- Allstate offers discounts including economy car, resident student, eSmart discount, multi-policy, FullPay discount, and premier plus.
- Nationwide has savings for multi-policy, defensive driving, family plan, good student, anti-theft, and business or organization.
- MetLife has discounts for claim-free, good student, defensive driver, good driver, multi-policy, and accident-free.
The diagram below illustrates the difference between auto insurance rates with and without discounts applied to the rates. The rates are based on a female driver, no claims or violations, Alaska state minimum liability limits, comp and collision included, and $500 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with multiple vehicle, anti-theft, claim-free, passive restraint, marriage, and accident-free discounts applied. When these discounts are applied, theaverage yearly reduction on auto insurance for business use is 28% or $459.
You may be paying too much for car insurance
Anchorage auto insurance rates are determined by lots of factors that may substantially change your annual premium. Simply getting older, marrying your spouse, or having a fender bender can produce rate changes resulting in some companies being cheaper than before.
In addition to those changes, auto insurance companies change rates as needed to adjust for unexpected claims or profits. Heavy losses may cause rate increases, while long-term profits can result in cheaper Anchorage car insurance rates.
To illustrate this example, the data below shows the companies that have the cheapest car insurance in Anchorage, AK for a 40-year-old male driver with a good driving record, no prior claims, and a good credit rating. When comparing rates based on his personal profile, Umialik might quote the lowest car insurance rates in Anchorage at $1,156 each year. This is $387 less than the average policy premium paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are also on the list of the best Anchorage, AK auto insurance companies.
Now we will give the driver from the above example a chargeable accident, a lower credit score, and an imperfect driving record. Since every insurance provider has a different formula to determining premium rates, analyzing rate quotes may now show a different set of cheap Anchorage auto insurance companies as shown below.
State Farm now has the best car insurance rate in Anchorage, AK with USAA, Umialik, Progressive, and Safeco also being competitive. This example shows why it is so important to take the time to shop around when trying to find the best auto insurance rates for business use.
Prices can be determined by many risk factors and can change substantially, so the most affordable company the last time you checked may now be an over-priced policy.
The insurance agencies listed below are willing to help you determine which auto insurance policy would work best for you, since lots of drivers aren’t clear which coverage they need and would like to have a consultation when trying to find the best insurance rates for business use. It’s not always simple to find the cheapest car insurance policy, and insurance agents licensed in the state of Alaska can give you peace of mind knowing you have decent coverage if you have a claim.
To find an Anchorage insurance agency by location nearest to you, click the button link following the list or click here to compare price quotes now.
Herb Schlereth – State Farm Insurance Agent
225 E Fireweed Ln #101 – Anchorage, AK 99503 – (907) 277-5548
Allstate Insurance: Katrina J. Cain
540 Karluk St – Anchorage, AK 99501 – (907) 274-2886
Aurora Insurance Services – A Horace Mann Company
4450 Cordova St #120 – Anchorage, AK 99503 – (907) 563-5300