Who Has the Cheapest Car Insurance for Business Use in Massachusetts?

The words “low-priced” and “insurance” really shouldn’t be used together, especially when searching for the cheapest coverage for business use. In an attempt to save some money, let’s teach you some situations that determine auto insurance premiums, and figure out some ways to slash the price of the next policy you buy.

Deciding which company quotes the cheapest insurance rates for business use will take more work in order to find the most economical policy. Every auto insurer uses a little different formula for determining rates, so let’s rank the insurance companies that tend to have lower prices in Massachusetts.

It’s a good idea to know that Massachusetts insurance rates are calculated based on many things that can increase your annual premium. Simply improving your credit, marrying your spouse, or having a fender bender may prompt premium changes resulting in some rates now being much cheaper than others.

Best Cheap Insurance Rates for Business Use

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State Farm quotes some of the cheapest car insurance rates in Massachusetts at around $711 a year. National Grange Mutual, GEICO, OneBeacon, and Commerce Group also rank well as some of the most economical Massachusetts insurance companies.

As the example above demonstrates, if you currently have a policy with National Grange Mutual and switched to State Farm, you could realize a yearly savings of upwards of $96. Customers with GEICO could save as much as $157 a year, and OneBeacon insureds might reduce rates by $192 a year.

To discover how much you can save, click here to begin a quote or click through to the companies below.

Be aware that those rates are averaged for all drivers and vehicles in Massachusetts and do not factor in a rate increase for business use. So the company that fits you best may not even be in the chart above. That underscores the importance of why you need to get rate quotes from many companies using your own specific driver information and vehicle.

The make and model of vehicle that is being insured is probably the largest consideration when comparison shopping for the cheapest auto insurance for business use in Massachusetts. Vehicles with average performance, advanced safety features, or a positive history of liability claims will cost substantially less to insure than fast, unsafe models. The list below ranks coverage costs for a number of the most budget-friendly vehicles to insure.

Table data assumes married male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Massachusetts minimum liability limits. Discounts applied include safe-driver, claim-free, multi-policy, multi-vehicle, and homeowner. Prices do not factor in zip code location which can revise insurance rates noticeably.

Based upon the rates shown, you can presume that makes and models like the Toyota Prius, Chevrolet Traverse, and Ford Escape will definitely be some of the more affordable vehicles to insure for using your car for business. The price for car insurance will be higher anyway because of the fact that there is more inherent risk for business use, but overall those particular vehicles will most likely have the cheapest rates that you’ll find.

Discount Massachusetts auto insurance rates

Insurers that sell the cheapest auto insurance for business use in Massachusetts may provide discounts that can lower rates by 30% or more if you meet certain criteria. Popular insurance companies and a partial list of their discounts can be read below.

The diagram below shows the comparison of insurance rates with and without discounts applied to the policy premium. The premium estimates are based on a male driver, no claims or driving citations, Massachusetts state minimum liability limits, full physical damage coverage, and $1,000 deductibles.

The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with safe-driver, passive restraint, anti-theft, claim-free, marriage, and defensive driving course discounts applied. When drivers qualify for the discounts, the the average yearly reduction on insurance for business use is % or $.

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Difference between full coverage and liability only rates

Finding the cheapest auto insurance for business use in Massachusetts is important to most people, and one easy way to buy cheap insurance is to only buy liability insurance. The example below shows the difference between premium costs with full phyical damage coverage and with liability coverage only. The premium estimates are based on a clean driving record, no at-fault accidents, $250 deductibles, single status, and no other discounts are factored in.

google.charts.setOnLoadCallback(drawFclqcibChart);function drawFclqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘Full Coverage with $250 Deductibles’, ‘Liability Only’],[‘Age 20’, 2993,1013],[‘Age 30’, 1573,559],[‘Age 40’, 1545,517],[‘Age 50’, 1407,485],[‘Age 60’, 1361,477],[‘Age 70’, 1655,635]]);var options = {title: ‘Full Coverage Rates Versus Liability Only Rates’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 500,’chartArea’: {left:100,top:50,’width’: ‘100%’, ‘height’: ‘70%’},legend: {position: ‘bottom’},colors: [‘#6791b9′,’#98bee2’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle in Massachusetts’,minValue: 0,format: ‘$###,###’},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 we average the cost for all age groups, physical damage insurance costs an additional $1,756 per year over having just liability coverage. At some point, about every driver wonders when is it a good idea to stop buying full coverage. There isn’t a steadfast formula that works best for making the decision to drop comp and collision coverage, but there is a guideline you can consider. If the yearly cost of comp and collision coverage is about 10% or more of the vehicle’s replacement cost less your deductible, then it may be the right time to buy liability only.

For example, let’s say your vehicle’s book value is $5,500 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $4,500 after the policy deductible has been paid. If you are paying in excess of $450 a year for full coverage, then you might consider buying liability only.

Who has the cheapest insurance quotes for using your car for business?

You have many ways to find lower-cost insurance in Massachusetts, but the most common methods are through an independent or non-exclusive agent, an exclusive agency like State Farm or Allstate, or direct from companies such as Geico or Progressive.

You can use whichever you prefer, but insurance shoppers should know the differences in how they provide rate quotes.

Independent insurance agents have contracts with many companies and can compare rates with all of them. They do not sell for just one brand and can get prices from more than one company, which can help you get a better comparison. If prices rise, you can get a different policy which prevents you from having to find an new insurance agent.

Exclusive agents are only able to write business for one insurance company, a couple examples are a State Farm or Allstate agent. They are unable to provide rate quotes from other companies, so they have no alternatives for high prices.

Opting to purchase insurance direct means you do not use the middleman (the agent) and instead buy direct either online or via phone. Buying direct may be a decent choice drivers who have lower risk management needs and have some degree of understanding of what insurance covers and what it doesn’t.

Which method is best to buy the cheapest auto insurance for business use in Massachusetts? Most people assume that buying from a direct car insurance company results in the cheapest price since there is no middleman, but unfortunately, that is not always true. An argument could also be made that an independent agent guarantees the cheapest rates because they can shop around, but again, it’s not necessarily true. In many cases, exclusive agencies have price quotes that cannot be beaten by either independent or direct companies.

Because of the variability of insurance rates, the best method to ensure you are not overpaying is to get quotes and compare the rates. To cover all the bases, get price quotes all three ways to give yourself the best selection. We compiled a list of companies with some of the cheapest online rates that you can click here to view.