The words “affordable” and “insurance” probably shouldn’t be used in the same sentence, specifically when looking for the best car insurance rates for business use. Because of the high cost, let’s teach you a few of the things that significantly impact auto insurance rates, and find a few ways to take a little off the next policy you buy.
The make and model of vehicle you are buying coverage for is one of the biggest factors when comparing the most affordable insurance for business use. Vehicles with lower acceleration and performance, excellent safety ratings, or a track record of few liability claims will cost significantly less to insure than high performance models. The table below outlines car insurance rates for a number of the more affordable vehicles to buy coverage for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 4WD | $1,893 |
| Chevrolet Equinox LT AWD | $1,916 |
| Toyota RAV4 Limited 4WD | $1,925 |
| Ford F-150 FX4 4WD | $1,954 |
| Hyundai Elantra GLS 4-Dr Sedan | $2,015 |
| Honda Odyssey EX-L W/Navigation | $2,025 |
| Ford Escape XLT 4WD | $2,032 |
| Toyota Prius | $2,049 |
| Ford Fusion SEL 4-Dr Sedan | $2,052 |
| Volkswagen Jetta SE 4-Dr Sedan | $2,061 |
| GMC Sierra SL Crew Cab 4WD | $2,052 |
| Toyota Tacoma 4WD | $2,081 |
| Ford Explorer XLT AWD | $2,086 |
| Compare Rates Now Go | |
Data variables include single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Arizona minimum liability limits. Discounts applied include homeowner, safe-driver, claim-free, multi-policy, and multi-vehicle. Table data does not factor in garaging location in Phoenix, AZ which can increase or decrease auto insurance rates significantly.
Based upon these rates, models like the Honda CR-V, Chevrolet Equinox, Toyota RAV4, Ford F-150, and Hyundai Elantra will be the most economical vehicles to insure for using your car for business. Auto insurance rates will be more costly because there is more claim exposure for business use, but generally speaking those specific models will tend to have the lowest insurance rates that you’ll find.
For using your car for business, one of the big things that are looked at to help calculate car insurance rates is where you normally keep your vehicle in Phoenix. Areas with increased crime or more people tend to pay more, whereas areas that tend to be more rural benefit from lower coverage costs.
The next table rates the most expensive cities in Arizona for business use in which to buy car insurance. Phoenix ranks #1 with the annual price of $1,268 for the average insured, which is approximately $106 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Phoenix | $1,268 |
| 2 | Avondale | $1,210 |
| 3 | San Tan Valley | $1,196 |
| 4 | Glendale | $1,190 |
| 5 | Tempe | $1,152 |
| 6 | Scottsdale | $1,151 |
| 7 | Buckeye | $1,144 |
| 8 | Gilbert | $1,142 |
| 9 | Peoria | $1,137 |
| 10 | Mesa | $1,113 |
| 11 | Maricopa | $1,107 |
| 12 | Goodyear | $1,098 |
| 13 | Chandler | $1,082 |
| 14 | Catalina Foothills | $1,082 |
| 15 | Tucson | $1,072 |
| 16 | Surprise | $1,058 |
| 17 | Casa Grande | $1,057 |
| 18 | Casas Adobes | $1,040 |
| 19 | Oro Valley | $1,031 |
| 20 | Yuma | $983 |
| Compare Rates Now Go | ||
Table data uses comparative as specific Phoenix garaging address can decrease or increase insurance rates significantly.
The chart below shows how different deductible levels can affect insurance prices when searching for cheap insurance for business use. The premium estimates are based on a married male driver, comp and collision included, and no additional discounts are factored in.
The chart above illustrates that a 50-year-old driver could save $210 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $316 by choosing a $1,000 deductible. Younger drivers, like the 20-year-old category, could roll back prices as much as $694 or more by using a higher deductible.
When raising deductibles, it will now be necessary to have enough savings set aside to enable you to pay the extra out-of-pocket expense, which is the main drawback of higher deductibles.
Car insurance companies ranked
Choosing the top insurance provider can be challenging considering how many choices there are in Arizona. The company ratings shown next may help you decide which auto insurers you want to consider comparing rates from. The ratings below are only made up of companies with a national presence, so smaller regional companies are not included in the list.
Top 10 Major Auto Insurance Providers in Phoenix Ranked by Customer Service
- State Farm
- GEICO
- The Hartford
- Mercury Insurance
- Progressive
- The General
- Allstate
- AAA Insurance
- American Family
- Nationwide
Top 10 Major Auto Insurance Providers in Phoenix Ranked by A.M. Best Rating
- USAA – A++
- Travelers – A++
- State Farm – A++
- GEICO – A++
- Esurance – A+
- Nationwide – A+
- Allstate – A+
- Mercury Insurance – A+
- Progressive – A+
- Titan Insurance – A+
Why you should compare rates
Phoenix car insurance rates are influenced by many factors that will increase or decrease your annual premium. Improving your credit score, buying a home, or getting a driving violation can produce rate changes resulting in some companies being cheaper than others. Not only that, but auto insurance companies file new rates as often as every quarter in order to offset underwriting gains or losses. Heavy losses may result in higher rates, while lower claim expenses can result in lower-priced Phoenix car insurance rates.
For example, the graph below demonstrates which company has the cheapest car insurance in Phoenix, AZ for a 40-year-old female driver with no accidents, a clean driving record, and excellent credit. When comparing rates based on her personal profile, The Hartford might offer the lowest car insurance rates in Phoenix at $1,171 annually. This is $257 less than the average price paid by Arizona drivers of $1,428. Safeco, Auto-Owners, USAA, and Travelers also make the list of the cheapest Phoenix, AZ auto insurance companies.
In this next rate comparison, we will give the driver from the first set of rates an accident claim, a little lower credit rating, and a stop sign violation. Since each insurance company has their own formula for establishing rates, analyzing rate quotes may now result in a different set of the cheapest companies as shown below.
GEICO now has the cheapest auto insurance in Phoenix, AZ with Ameriprise Group, CSAA, Allied, and Farm Bureau Mutual completing the list. This shows why Phoenix drivers need to compare as many rates as possible when trying to get the most economical insurance rates for business use.
Prices are calculated by many factors and can change without notice, so the most affordable company a year ago may now be one of the more expensive options.
The Phoenix, AZ, insurance agents below can answer your questions and help you decide which policy is best, as some drivers have questions and prefer to have a little guidance when shopping around for cheaper insurance for using your car for business. It can be challenging to find coverage yourself, and getting advice from a licensed Arizona insurance agent can give comfort knowing your policy gives you adequate asset protection. To locate a Phoenix car insurance agency close to you, click the button after the list.
Mattie Taylor – State Farm Insurance Agent
4225 W Bell Rd – Phoenix, AZ 85053 – (602) 938-4491
American Premier Insurance Agency
16815 S Desert Foothills Pkwy #140 – Phoenix, AZ 85048 – (480) 423-3444
Mary Parada – State Farm Insurance Agent
3414 W Bell Rd – Phoenix, AZ 85053 – (602) 942-9202
Nichole Schaffer – State Farm Insurance Agent
2612 N 7th St – Phoenix, AZ 85006 – (602) 439-7000
Bob Schneider – State Farm Insurance Agent
243 W Portland St – Phoenix, AZ 85003 – (602) 277-2687
View more Phoenix, AZ insurance agencies
How to find more affordable insurance for business use
It is possible to find better rates, and here are some of the recommended penny-pinching solutions that can help Arizona drivers locate more affordable coverage.
- Higher credit ratings may save you money
- Staying accident-free helps keep rates low
- Pay for small claims rather than turning them in to your insurance company
- Raise your deductibles
- Buying home and auto insurance together can earn discounts
- You will pay more if you get tickets or have at-fault accidents
- Comparison shop frequently
That last piece of advice is extremely important, as was emphasized in the prior article. Insurance prices fluctuate constantly, so you should be ready to switch companies if a better deal can be had.
Many drivers prefer to stick with one company, but it’s not a good idea if that faithfulness ends up costing you money that could be used for better things. In less than five minutes you could compare rates and find cheaper insurance for business use in Phoenix.