The vehicle model requiring insurance is probably the most important factor when comparing quotes for the best cheap auto insurance for business use. Vehicles with lower acceleration and performance, an excellent safety record, or low incidents of liability claims will cost quite a bit less to insure than high performance models. The data below illustrates car insurance costs for some of the cheapest vehicles to buy insurance for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 4WD | $814 |
| Honda Accord EX-L 4-Dr Sedan | $862 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $891 |
| Ford Explorer XLT 2WD | $896 |
| Honda CR-V EX 2WD | $913 |
| Volkswagen Jetta SE 2.5 Station Wagon | $929 |
| GMC Sierra SLE Crew Cab 2WD | $939 |
| Toyota RAV4 Limited 4WD | $948 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $958 |
| Chevrolet Malibu LT | $967 |
| Hyundai Elantra Blue 4-Dr Sedan | $972 |
| Ford Edge Limited AWD | $988 |
| Chevrolet Impala LTZ | $997 |
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Prices based on single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include multi-policy, homeowner, safe-driver, claim-free, and multi-vehicle. Rates do not factor in garaging location in San Diego, CA which can alter coverage rates considerably.
By looking at the data, you can assume that cars like the Ford Escape, Honda Accord, and Jeep Wrangler are most likely to be a few of the most affordable vehicles to insure for using your car for business. The cost of a car insurance policy will be more expensive because of the fact that there is more claim exposure for business use, but in general those particular vehicles will tend to have the cheapest rates that you’ll find.
One of the more important components that are looked at to determine the amount you pay each year for auto insurance is where you normally keep your vehicle in San Diego. Cities with larger populations will most likely have higher rates, whereas areas with lower crime rates and fewer weather claims tend to receive slightly lower rates.
The following table ranks the most expensive places in California for business use to buy car insurance in. San Diego comes in at #19 with an annual cost of $1,381 for the average insured, which is around $115 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Los Angeles | $2,146 |
| 2 | Glendale | $2,142 |
| 3 | San Francisco | $1,711 |
| 4 | Oakland | $1,704 |
| 5 | Sacramento | $1,703 |
| 6 | San Bernardino | $1,644 |
| 7 | Long Beach | $1,562 |
| 8 | Stockton | $1,556 |
| 9 | Santa Clarita | $1,548 |
| 10 | Moreno Valley | $1,536 |
| 11 | Fontana | $1,535 |
| 12 | Garden Grove | $1,524 |
| 13 | Modesto | $1,487 |
| 14 | Riverside | $1,482 |
| 15 | Fresno | $1,457 |
| 16 | Santa Ana | $1,453 |
| 17 | Anaheim | $1,444 |
| 18 | San Jose | $1,437 |
| 19 | San Diego | $1,381 |
| 20 | Huntington Beach | $1,374 |
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Prices are estimated as the specific garaging location can raise or lower auto insurance rates greatly.
The illustration below illustrates how choosing a deductible can change insurance costs when trying to find cheap insurance for business use. The premiums assume a married female driver, full coverage, and no policy discounts are applied.
A 30-year-old driver could lower their car insurance rates by $350 a year by increasing from a $100 deductible up to a $500 deductible, or save $530 by choosing a $1,000 deductible. Young drivers, such as the 20-year-old example, could roll back prices as much as $750 every year by choosing a higher deductible. If you do make the decision to raise your deductibles, it is a good idea to have enough in a savings account to be able to cover the extra out-of-pocket expense that comes with higher deductibles.
Get discounts on San Diego car insurance
Insurance companies that provide coverage for business use may have discounts that could potentially reduce rates by as much as 30% if you qualify for them. Larger insurance companies and a partial list of their discounts are outlined below.
- 21st Century offers premium reductions for teen driver, theft prevention, student driver, defensive driver, good student, anti-lock brakes, and air bags.
- Progressive includes discounts for multi-vehicle, continuous coverage, homeowner, good student, online signing, and multi-policy.
- State Farm discounts include driver’s education, multiple policy, student away at school, Steer Clear safe driver discount, and accident-free.
- Nationwide offers discounts including family plan, Farm Bureau membership, easy pay, good student, and accident-free.
- Esurance offers discounts for multi-policy, anti-lock brakes, Switch & Save, DriveSense, and defensive driver.
- The Hartford policyholders can earn discounts including defensive driver, driver training, anti-theft, good student, bundle, air bag, and vehicle fuel type.
The information below compares insurance premiums with and without some available policy discounts. The rates are based on a female driver, no claims or violations, California state minimum liability limits, full coverage, and $250 deductibles. The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with homeowner, safe-driver, anti-theft, passive restraint, multiple policy, and accident-free discounts applied. When these discounts are applied to the policy premium, theamount saved on insurance for business use is 28% or $819.
Does it make sense to buy full coverage?
Paying less for insurance is the goal of most drivers, and one good way to pay lower rates for insurance for business use is to not buy comprehensive and collision coverage. The information below illustrates the difference between car insurance rates with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The costs are based on no violations or claims, $100 deductibles, single status, and no other discounts are factored in.
As an overall average, physical damage coverage costs $2,525 per year more than carrying just liability coverage. That is a large expense which might make you wonder if you should buy full coverage. There is no definitive guideline to drop physical damage coverage on your policy, but there is a guideline you can use. If the annual cost of your full coverage insurance is about 10% or more of the replacement cost minus the deductible, then you might want to consider buying only liability coverage.
How to find economical insurance for business use
It is possible to find better rates, and here are a few penny-pinching solutions that can help drivers get lower-cost coverage.
- Being accident-free can lower rates significantly
- Frequent claims may make car insurance unaffordable
- You will pay more if you get tickets or have at-fault accidents
- Buy a car with high safety ratings
- Good credit can mean cheaper rates
- Compare rates and switch if you can find a better deal
The last tip in the list is particularly critical, as we emphasized in this write-up. Car insurance rates in San Diego adjust often, so drivers shouldn’t be resistant to switch to a new company if a better deal can be had.
Sticking with a specific company is fine, but we do not recommend it if it’s costing you money that could be going to better use. Take a few minutes and compare prices and find cheaper auto insurance for business use.
If you prefer to have the advice of a professional agent when buying car insurance for using your car for business, the insurance agencies below can answer your questions and help you decide which coverages you need.
To find an auto insurance agency closest to you, click the link after the list or click here to compare price quotes now.
- Bob Francy III – State Farm Insurance Agent
11885 Carmel Mountain Rd #905 – San Diego, CA 92128 – (858) 451-1915 - Karen L Wroan – State Farm Insurance Agent
12780 High Bluff Dr #180 – San Diego, CA 92130 – (858) 755-7553 - ARROWHEAD General Insurance Agency, Inc.
701 B St #2100 – San Diego, CA 92101 – (619) 744-5000