How Much is Auto Insurance for Business Use in New York?

The vehicle model requiring coverage is a large consideration when comparing the most economical insurance for business use. Vehicles with limited top-end speed, a plethora of safety features, or a low likelihood of having liability claims will cost quite a bit less to insure than high performance models.

The data below presents coverage premiums for a handful of the most cost-effective vehicles to buy insurance for.

Data assumes single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New York minimum liability limits. Discounts applied include safe-driver, homeowner, claim-free, multi-vehicle, and multi-policy. Premium costs do not factor in your specific New York location which can lower or raise rates considerably.

Looking at the data, you can conclude that vehicles like the Honda Accord, Ford Escape, Ford F-150, Honda CR-V, and Chevrolet Traverse will be a few of the cheapest vehicles to insure for using your car for business. The price for an auto insurance policy will be more costly because there is more liability exposure for business use, but overall those vehicles will most likely have the cheapest rates possible.

Figuring out which companies have the cheapest car insurance rates for business use will require a little more work in order to find the most economical policy. Every auto insurer has a different formula to set premium rates, so let’s rank the most competitive car insurance companies in New York.

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USAA may offer some of the cheapest car insurance rates in New York at around $1,163 each year. Erie, Utica National, Progressive, and Travelers also make the cut as some of the most economical New York insurance companies.

As depicted above, if you are a policyholder with Progressive and switched to Erie, you could realize annual savings of roughly $257. Customers with Travelers may save as much as $274 a year, and Amica insureds might lower prices by $325 a year.

Remember that these premium estimates are averages across all types of insureds and vehicles and do not take into consideration a price increase for business use. So the car insurance company that fits your age and vehicle best may not even be featured in the chart above. That helps illustrate why you need to get rate quotes from many companies using your own driver data and vehicle information.

When shopping for cheaper car insurance for using your car for business, one of the many things that is used to calculate a rate quote is where your residence is. Urban areas that are densely populated like New York, Freeport, and Mount Vernon tend to have higher auto insurance costs, whereas areas with less crime or weather claims benefit from lower prices.

The table below shows the most expensive cities in New York for business use to buy auto insurance in.

Prices are comparative as the specific zip code location can affect auto insurance rates considerably.

Liability rates compared to full coverage

Finding cheap auto insurance for business use in New York should be important to most people, and one of the fastest ways to find cheap insurance is to only buy liability insurance. The example below illustrates the comparison of premium costs when comparing full coverage to liability only. The rate quotes are based on no claims or violations, $100 deductibles, single status, and no discounts are applied to the premium.

google.charts.setOnLoadCallback(drawFclqcibChart);function drawFclqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘Full Coverage with $100 Deductibles’, ‘Liability Only’],[‘Age 20’, 3521,1065],[‘Age 30’, 1793,587],[‘Age 40’, 1791,543],[‘Age 50’, 1627,509],[‘Age 60’, 1577,501],[‘Age 70’, 1919,669]]);var options = {title: ‘Savings of Only Insuring for Liability’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 500,’chartArea’: {left:100,top:50,’width’: ‘100%’, ‘height’: ‘70%’},legend: {position: ‘bottom’},colors: [‘#6791b9′,’#98bee2’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle in New York’,minValue: 0,format: ‘$###,###’},vAxis: {title: ‘Age of Insured’}};var formatter = new google.visualization.NumberFormat({fractionDigits: 0,prefix: ‘$’});formatter.format(data,1);formatter.format(data,2);var chart = new google.visualization.BarChart(document.getElementById(‘qcibfcl’));chart.draw(data, options);}

If averaged for all ages, full coverage costs $2,038 per year over and above liability only. That brings up the question if paying for full coverage is a waste of money. There is no set guideline to delete physical damage insurance, but there is a general convention. If the yearly cost of full coverage is more than 10% of replacement cost minus your deductible, then it may be the right time to buy liability only.

For example, let’s pretend your vehicle’s settlement value is $5,000 and you have $1,000 physical damage deductibles. If your vehicle is damaged in an accident, you would only receive $4,000 after you pay the deductible. If you are currently paying more than $400 annually to have full coverage, then it might be time to consider dropping full coverage.

There are some circumstances where buying only liability insurance is not financially feasible. If you have an outstanding loan on your vehicle, you have to maintain full coverage as part of the loan conditions. Also, if your savings is not enough to buy a different vehicle if your current one is in an accident, you should keep full coverage on your policy.

Get discounts on New York insurance rates

Insurers that offer cheap auto insurance for business use in New York may have premium discounts that can reduce rates by as much as 25% or more if you qualify. Popular car insurance companies and a selection of discounts include:

The chart below shows the comparison of premium costs with and without discounts applied. The data assumes a male driver, no claims or driving violations, New York state minimum liability limits, full coverage, and $500 deductibles. The first bar for each age group shows insurance cost with no discounts. The second shows the rates with multiple policy, passive restraint, anti-theft, vehicle safety, multiple vehicle, and safe-driver discounts applied. In this example, the the amount saved on car insurance for business use is 41% or $443.

google.charts.setOnLoadCallback(drawDiscqcibChart);function drawDiscqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘Male Driver No Discounts’, ‘Male Driver with Discounts’],[‘Age 20’, 2337,1685],[‘Age 30’, 1225,893],[‘Age 40’, 1205,877],[‘Age 50’, 1101,799],[‘Age 60’, 1065,773],[‘Age 70’, 1299,939]]);var options = {title: ‘Effect of Discounts on Insurance Rates for Business Use’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 500,’chartArea’:{left:100,top:50,’width’: ‘100%’, ‘height’: ‘70%’},legend: {position: ‘bottom’},colors: [‘#6791b9’, ‘#98bee2’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle’,minValue: 0,format: ‘$###,###’},vAxis: {title: ‘Age of Insured’}};var formatter = new google.visualization.NumberFormat({fractionDigits: 0,prefix: ‘$’});formatter.format(data,1);formatter.format(data,2);var chart = new google.visualization.BarChart(document.getElementById(‘qcibdisc’));chart.draw(data, options);}

Geico, Allstate, Progressive, or State Farm: Who is cheapest?

When shopping around for auto insurance, the companies with the most market share are Geico, Allstate, Progressive, and State Farm. The data below compares and contrasts some of the different features offered by each company.