The words “cheap” and “insurance” really should not be used together, in particular when searching for the best coverage prices for a company car. Because it’s so expensive, let’s start the ball rolling by going over some things that significantly impact auto insurance rates, and see if you can take the bite out of the next policy you buy.
Finding out which companies offer the best insurance rates for a company car may require more work in order to find coverage that fits your budget. Every auto insurer uses a little different formula for setting rates, so let’s take a look at the insurance companies that tend to be cheaper in Minneapolis.
It’s important to understand that Minneapolis, MN insurance rates are determined by lots of factors which can substantially change the price of coverage. Simply having another birthday, buying a different vehicle, or getting caught speeding can trigger changes in premium that may make certain companies much cheaper than others.
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Travelers may have some of the most affordable car insurance rates in Minneapolis at around $667 per year. This is $754 less than the average price paid by Minnesota drivers of $1,421. USAA, Farm Bureau Mutual, The Hartford, and Western National would also be considered some of the most economical Minneapolis, MN car insurance companies.
As the example above demonstrates, if you currently have a policy with Farm Bureau Mutual and switched to Travelers, you could realize savings of around $162. Policyholders with The Hartford could save as much as $269 a year, and Western National policyholders might cut rates by $270 a year.
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Bear in mind that those rates are averaged across all types of insureds and vehicles and and are not figured with an exact vehicle garaging location for a company car. So the car insurance company that fits you best may not even be in the list above. That illustrates why you need to compare rates from multiple companies using your own personalized driver profile and vehicle information.
The vehicle model that is being insured is a large consideration when looking for the most affordable auto insurance for a company car. Vehicles with average performance, an excellent safety record, or a low likelihood of liability claims will cost significantly less to insure than higher performance models. The information below estimates insurance rates for some of the most budget-friendly automobiles to insure in Minnesota.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $1,304 |
| Honda Accord EX 4-Dr Sedan | $1,421 |
| Jeep Wrangler Sahara 4WD 2-Dr | $1,463 |
| Ford Focus SE 4-Dr Sedan | $1,513 |
| Chevrolet Malibu Hybrid | $1,544 |
| Volkswagen Jetta S 2.5 Station Wagon | $1,547 |
| Honda Odyssey LX | $1,594 |
| Toyota Tacoma 4WD | $1,599 |
| Ford Escape Limited 4WD | $1,594 |
| Ford F-150 XL Super Cab 4WD | $1,634 |
| Toyota Prius | $1,636 |
| Hyundai Sonata GLS 4-Dr Sedan | $1,656 |
| GMC Sierra SLE Extended Cab 4WD | $1,666 |
| Toyota RAV4 Limited 4WD | $1,684 |
| Chevrolet Equinox LS AWD | $1,694 |
| Chevrolet Impala LT | $1,684 |
| Ford Edge Limited 2WD | $1,689 |
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Data assumes married male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include claim-free, homeowner, multi-vehicle, multi-policy, and safe-driver. Table data does not factor in the specific area where the vehicle is garaged which can influence auto insurance rates considerably.
Based upon the rates shown, you can conclude that vehicles like the Honda CR-V, Honda Accord, Jeep Wrangler, and Ford Focus are the more affordable vehicles to insure for your employer’s vehicle.
One of the many things that are looked at to help calculate the amount you pay for auto insurance is where you live in Minneapolis. Cities with more crime and/or more people will most likely pay more, whereas areas that tend to be more rural can boast about having cheaper rates.
The following table ranks the highest-priced areas in Minnesota for a company car to buy an auto insurance policy in. Minneapolis is ranked at #2 with a yearly cost of $2,058 for coverage, which is approximately $172 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Maplewood | $2,066 |
| 2 | Minneapolis | $2,058 |
| 3 | Saint Paul | $1,988 |
| 4 | Coon Rapids | $1,809 |
| 5 | Saint Louis Park | $1,772 |
| 6 | Brooklyn Park | $1,762 |
| 7 | Richfield | $1,760 |
| 8 | Blaine | $1,748 |
| 9 | Woodbury | $1,748 |
| 10 | Duluth | $1,741 |
| 11 | Bloomington | $1,739 |
| 12 | Maple Grove | $1,724 |
| 13 | Edina | $1,707 |
| 14 | Eden Prairie | $1,706 |
| 15 | Lakeville | $1,700 |
| 16 | Plymouth | $1,680 |
| 17 | Apple Valley | $1,680 |
| 18 | Burnsville | $1,675 |
| 19 | Minnetonka | $1,672 |
| 20 | Eagan | $1,661 |
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Premium costs are comparative as vehicle location can decrease or increase auto insurance rates greatly.
How accidents and tickets impact rates in Minneapolis
The common sense way to obtain the best insurance rates in Minneapolis for your employer’s vehicle is to be a cautious driver and not receive tickets or have accidents. The diagram below illustrates how traffic citations and accidents can impact auto insurance rates for each different age category. The rates are based on a single male driver, comp and collision included, $1,000 deductibles, and no discounts are factored in.
The data above shows the average cost of auto insurance per year with no accidents and a clean driving record is $1,778. Get two speeding tickets and the average cost rises to $2,341, an increase of $563 each year. Now get two accidents along with the two speeding tickets and the annual cost of insurance for a company car goes up to an average of $4,710. That’s an increase of $2,932, or $244 per month, just for not driving carefully!
Rate comparison of full coverage and liability-only
Saving money when shopping for insurance is probably important to most drivers, and one easy way to buy cheap insurance for a company car is to not buy full coverage. The information below visualizes the comparison of auto insurance rates with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The rates are based on no accidents or driving violations, $1,000 deductibles, drivers are not married, and no discounts are taken into consideration.
As an average for all age groups, full coverage costs an extra $1,778 per year over having just liability coverage. That may make you wonder when is it a good idea to stop buying full coverage. There is no definitive rule of when to eliminate full coverage on your policy, but there is a broad guideline. If the annual cost of having full coverage is more than about 10% of the replacement cost minus the deductible, the it may be a good time to stop paying for full coverage.
For example, let’s say your vehicle’s replacement value is $10,000 and you have $1,000 policy deductibles. If your vehicle is totaled, the most you would get paid by your company is $9,000 after paying your policy deductible. If premiums are more than $900 a year for physical damage coverage, then it may be the right time to buy liability only.
The information below highlights how deductible choice can change annual premium costs when searching for cheap insurance for a company car. The rate quotes are based on a married female driver, full physical damage coverage, and no additional discounts are factored in.
A 30-year-old driver could lower their policy premium by $302 a year by increasing from a $100 deductible to a $500 deductible, or save $456 by changing to a $1,000 deductible. Even younger insureds, like the Age 20 category, could possibly save $644 annually by selecting a higher deductible.
If you do decide to increase your deductibles, it’s a good idea to have spare funds to pay the extra out-of-pocket expense that deters many people from opting for higher deductibles.
Your cheap policy may actually be overpriced
Minneapolis insurance rates are determined by lots of factors which can substantially decrease or increase the policy price. Getting older, filing a claim, or getting a ticket for running a stop sign can cause premium changes resulting in some rates now being more affordable than the competition. In addition, insurance companies file new rates multiple times each year to ensure their profitability. Larger than normal claims may result in increased rates, while lower claims may cause lower-priced Minneapolis car insurance rates.
For instance, the chart below shows a variety of companies that have the cheapest car insurance in Minneapolis, MN for a 35-year-old female driver with no violations or accidents, and good financial standing. If we compare prices based on her personal risk profile, Travelers may offer the lowest car insurance rates in Minneapolis at $931 annually. This is $490 less than the average premium paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, Western National, and West Bend Mutual are the rest of the most affordable Minneapolis, MN auto insurance companies.
Now let’s give the driver in the first chart a chargeable claim, a lower credit score, and a stop sign violation. Because each insurer has a proprietary formula for setting rates, analyzing rate quotes could result in a different list of cheap Minneapolis auto insurance companies as shown below.
USAA now has the lowest price in Minneapolis, MN with Farm Bureau Mutual, Allied, California Casualty, and American Family completing the list. This example illustrates why drivers need to spend some time comparing rates when trying to find the cheapest insurance rates for a company car.
Rates are influenced by many factors and change frequently, so the most economical company the last time you shopped around may now cost much more than other companies.