The words “cheap” and “insurance” really shouldn’t be used in the same sentence, specifically when trying to find the best price on coverage for a company car. Because it’s not cheap, let’s open your eyes to a few of the things that determine auto insurance prices, and come up with some ways to slash the price of your next policy.
Deciding which company quotes the cheapest insurance rates for a company car takes a little more work than just comparing rates from one or two companies. Each insurance company uses their own method to determine rates, so let’s take a look at the insurance companies with the overall cheapest rates in Phoenix.
It’s a good idea to be aware that Arizona insurance rates are influenced by many factors that may substantially change the price you have to pay. Simply turning a year older, marrying your spouse, or getting a ticket for running a stop sign may generate price changes that can cause some rates to be cheaper than competitors.
Find Cheaper Auto Insurance in Arizona
|Rank||Company||Cost Per Year|
|11||Farm Bureau Mutual||$1,297|
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The Hartford quotes some of the most affordable car insurance rates in Phoenix at around $836 a year. This is $592 less than the average premium paid by Arizona drivers of $1,428. Auto-Owners, Safeco, Travelers, and USAA also make the cut as some of the most economical Phoenix, AZ auto insurance companies.
As shown in the table above, if you currently have coverage with USAA and switched to Auto-Owners, you might see a yearly price reduction of in the neighborhood of $189. Drivers with Progressive may save as much as $228 a year, and Ameriprise Group policyholders might lower prices by $248 a year.
Understand that those policy rates are averages for all insureds and vehicles and and are not calculated with a specific location for a company car. So the company that can offer you the lowest price may not even be in the top 28 companies in the list above. That points out the importance of why you need to get rate quotes from many companies using your own driver and vehicle profiles.
The vehicle on the policy is one of the biggest factors that determines whether or not you find the most economical auto insurance for a company car. Vehicles with higher performance, a lack of safety features, or a track record of large liability claims will cost more to insure than safer, lower-performance models.
The list below shows coverage prices for a handful of the most budget-friendly automobiles to insure in Arizona.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Ford Escape XLS 2WD||$1,616|
|Hyundai Elantra GLS Touring Station Wagon||$1,624|
|Honda Accord EX 4-Dr Sedan||$1,616|
|Honda Odyssey EX-L||$2,015|
|Toyota Camry XLE||$2,024|
|Honda CR-V EX-L 2WD||$2,032|
|Nissan Altima 3.5 SR 4-Dr Sedan||$2,052|
|GMC Sierra SL Crew Cab 4WD||$2,061|
|Chevrolet Equinox LTZ AWD||$2,052|
|Ford Fusion SEL 4-Dr Sedan||$2,057|
|Jeep Wrangler Sahara 4WD 2-Dr||$2,081|
|Toyota Tacoma 4WD||$2,086|
|Dodge Ram Quad Cab ST 4WD||$2,090|
|Ford F-350 Super Cab Harley Edition 2WD||$2,124|
|Dodge Grand Caravan SE||$2,222|
|Ford Explorer Eddie Bauer AWD||$2,237|
|Chevrolet Impala LS||$2,297|
|Ford Focus SE 4-Dr Sedan||$2,307|
|Toyota Corolla XLE||$2,312|
|Toyota RAV4 4WD||$2,347|
|Chevrolet Silverado LT Regular Cab||$2,352|
|Ford F-150 Lariat Crew Cab Harley 2WD||$2,357|
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Prices based on single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Arizona minimum liability limits. Discounts applied include safe-driver, claim-free, multi-policy, homeowner, and multi-vehicle. Rate quotes do not factor in Phoenix, AZ location which can affect premium rates noticeably.
Looking at the rates, you can figure that vehicles like the Ford Escape, Hyundai Elantra, Honda Accord, and Honda Odyssey will definitely be some of the more affordable vehicles to insure for your employer’s vehicle.
The information below demonstrates how deductible levels can change annual premium costs when researching cheap insurance for a company car. The data is based on a single female driver, comprehensive and collision coverage, and no other discounts are factored in.
The data above shows that a 40-year-old driver could lower their car insurance rates by $286 a year by changing from a $100 deductible up to a $500 deductible, or save $430 by changing to a $1,000 deductible. Younger drivers, like the 20-year-old example, could reduce their rates as much as $724 annually by using a higher deductible.
When choosing a higher deductible, it is important to have plenty of discretionary funds to be able to cover the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Full coverage rates compared to liability-only
Finding cheaper insurance is probably important to most vehicle owners, and one common way to buy cheap insurance for a company car is to only buy liability insurance. The example below illustrates the difference between insurance prices with full coverage compared to only the Arizona minimum liability coverage. The information is based on no claims, a clean driving record, $100 deductibles, single marital status, and no discounts are taken into consideration.
If averaged out across all ages, physical damage coverage costs $1,722 per year more than just buying liability only. That amount may make you wonder when is it safe to stop buying full coverage. There is no definitive formula to delete full coverage on your policy, but there is a guideline you can consider. If the yearly cost for physical damage coverage is 10% or more of the vehicle’s replacement cost less your deductible, then it might be time to consider dropping full coverage.
For example, let’s pretend your vehicle’s settlement value is $11,000 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $10,000 after the policy deductible has been paid. If you are currently paying more than $1,000 annually to have full coverage, then you might consider buying liability only.
There are some circumstances where dropping physical damage coverage is not a good idea. If you haven’t paid off your loan, you must maintain physical damage coverage as part of the loan conditions. Also, if you can’t afford to buy a different vehicle if your current one is totaled, you should keep full coverage on your policy.
Who has the cheapest Phoenix car insurance?
Phoenix insurance rates are determined by lots of factors which can substantially decrease or increase the cost of your policy. Improving your credit rating, buying a new vehicle, or having a fender bender may cause policy rate changes that can cause some rates to be cheaper than others. In addition to those changes, insurance companies file new Arizona car insurance rates without warning to help ensure profitability. An unexpected high level of claims may result in high rates, while a better loss history can produce more affordable Phoenix car insurance rates.
For example, the chart below shows the companies that have the cheapest car insurance in Phoenix, AZ for a 35-year-old female driver with no accidents or violations, and a good credit history. Based on her current situation, The Hartford might offer the most affordable car insurance rates in Phoenix at $1,207 per year. This is $221 less than the average price paid by Arizona drivers of $1,428. Safeco, Auto-Owners, Travelers, and USAA round out the rest of the top five cheapest Phoenix, AZ auto insurance companies.
Let’s now give the driver from above a claim surcharge, less-than-perfect credit, and a speeding citation. Because each insurer has a unique formula to set premium rates, analyzing rate quotes may now result in a new list of the cheapest car insurance companies in Phoenix as shown below.
Progressive now has the lowest price on auto insurance in Phoenix, AZ with Ameriprise Group, CSAA, Allied, and Farm Bureau Mutual completing the list. This example illustrates why it is so important to perform an extensive rate comparison to get the most budget-friendly auto insurance quotes for a company car.
Insurance rates can be determined by many things and can change without notice, so the most affordable company the last time you compared rates may now be wasting a lot of money.