For using your car for business, one of the more important things that are looked at to determine the amount you pay for auto insurance is where you live. Areas with more people or more claims are more likely to have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims have the luxury of lower rates.
The following table rates the highest-priced places in Pennsylvania for business use to buy an auto insurance policy in. Philadelphia is ranked at #1 with a yearly premium of $1,977 for the average insurance policy, which is around $165 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Philadelphia | $1,977 |
| 2 | Drexel Hill | $1,549 |
| 3 | Levittown | $1,407 |
| 4 | Chester | $1,379 |
| 5 | Norristown | $1,268 |
| 6 | Reading | $1,099 |
| 7 | Allentown | $1,097 |
| 8 | Municipality of Monr | $1,091 |
| 9 | Easton | $1,091 |
| 10 | Erie | $1,082 |
| 11 | Wilkes-Barre | $1,079 |
| 12 | Bethlehem | $1,077 |
| 13 | Pittsburgh | $1,063 |
| 14 | New Castle | $1,057 |
| 15 | Plum | $1,047 |
| 16 | Hazleton | $1,046 |
| 17 | Altoona | $1,042 |
| 18 | Scranton | $1,039 |
| 19 | Harrisburg | $1,015 |
| 20 | Lancaster | $995 |
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Rates are estimated as the garaging address in Philadelphia can influence rates considerably.
Establishing which company has the cheapest insurance rates for business use will take a tad more effort in order to find the lowest price quote. Every car insurance company has a different formula for setting prices, so let’s take a look at the insurance companies that tend to be cheaper in Pennsylvania.
It’s important to know that Philadelphia insurance rates are influenced by many factors which can significantly increase or decrease your annual premium. Simply having another birthday, having a teenage driver, or getting a reckless driving citation can trigger changes in premium that can make some companies cheaper than others.
Compare Cheap Insurance Quotes for Business Use
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | General Casualty | $726 |
| 2 | Travelers | $803 |
| 3 | Penn National | $808 |
| 4 | Erie | $816 |
| 5 | USAA | $817 |
| 6 | Auto-Owners | $963 |
| 7 | Amica | $992 |
| 8 | Atlantic States | $1,047 |
| 9 | Donegal Mutual | $1,091 |
| 10 | GEICO | $1,145 |
| 11 | Allied | $1,190 |
| 12 | State Farm | $1,210 |
| 13 | California Casualty | $1,234 |
| 14 | State Auto | $1,241 |
| 15 | Encompass | $1,398 |
| 16 | Progressive | $1,414 |
| 17 | Harleysville | $1,438 |
| 18 | Mutual Benefit Group | $1,439 |
| 19 | Nationwide | $1,447 |
| 20 | Chubb | $1,598 |
| Quote Your Rates Go | ||
General Casualty quotes some of the lowest car insurance rates in Philadelphia at around $726 annually. This is $931 less than the average price paid by Pennsylvania drivers of $1,657. Travelers, Penn National, Erie, and USAA also are some of the best Philadelphia, PA car insurance companies.
As illustrated above, if you currently have a policy with Travelers and switched to General Casualty, you could see a yearly price reduction of in the neighborhood of $77. Insureds with Penn National might save as much as $82 a year, and Erie policyholders might realize rate reductions of up to $90 a year.
Remember that these prices are averaged for all insureds and vehicles and and are not figured with an exact location for business use. So the company that can offer the best rates for your situation may not even be in the top 30 companies in the list above. That affirms the importance of why you need to get car insurance quotes using your own specific driver information and vehicle.
The make and model of vehicle you are seeking coverage for is probably the most important factor when shopping for economical coverage for business use. Vehicles with lower performance, an excellent safety record, or a low likelihood of having liability claims will cost significantly less to insure than adrenaline junky models.
The information below estimates auto insurance prices for a selection of the most economical vehicles to insure.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape Limited 4WD | $4,095 |
| Jeep Wrangler Sahara 4WD 2-Dr | $4,241 |
| Volkswagen Jetta 2.0T Station Wagon | $4,417 |
| Chevrolet Equinox LS 2WD | $4,475 |
| Chevrolet Impala LT | $4,482 |
| Ford F-150 Lariat Super Cab 4WD | $4,563 |
| Dodge Grand Caravan Crew | $4,570 |
| Dodge Ram Quad Cab ST 2WD | $4,563 |
| Chevrolet Malibu LT | $4,569 |
| Toyota Camry XLE | $4,709 |
| Honda CR-V EX-L 2WD | $4,744 |
| Toyota Prius | $4,788 |
| Jeep Grand Cherokee Limited 4WD | $4,797 |
| Ford Explorer XLT 4WD | $4,854 |
| Chevrolet Silverado 3500HD LT Crew Cab 2WD | $4,881 |
| Honda Odyssey EX | $5,026 |
| Toyota Camry Hybrid | $5,119 |
| Nissan Altima 2.5 4-Dr Sedan | $5,123 |
| Hyundai Elantra Blue 4-Dr Sedan | $5,296 |
| Ford Edge Limited AWD | $5,393 |
| Toyota RAV4 2WD | $5,481 |
| GMC Sierra SL Extended Cab 2WD | $5,489 |
| Nissan Rogue S 2WD | $5,499 |
| Start Your Quote Go | |
Prices based on single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Pennsylvania minimum liability limits. Discounts applied include multi-vehicle, safe-driver, homeowner, multi-policy, and claim-free. Price information does not factor in the specific area where the vehicle is garaged which can modify premiums greatly.
Based on these rates, we can tell that cars like the Ford Escape, Jeep Wrangler, and Volkswagen Jetta are most likely to be some of the most budget-friendly vehicles to insure for using your car for business. Car insurance rates will tend to be more expensive because of the fact that there is a higher risk for business use, but overall those particular vehicles will probably have the lowest insurance prices that you’ll find.
Get discounts on Philadelphia auto insurance
Car insurance companies that provide policies for business use may additionally offer premium discounts that could reduce prices by as much as 35% if you meet certain criteria. Popular insurance companies and a summarized list of policyholder discounts are detailed below.
- Progressive offers discounts for homeowner, multi-vehicle, continuous coverage, multi-policy, good student, and online signing.
- The Hartford may include discounts for defensive driver, driver training, bundle, good student, anti-theft, air bag, and vehicle fuel type.
- Mercury Insurance policyholders can earn discounts including multi-policy, good driver, multi-car, professional/association, anti-theft, and age of vehicle.
- GEICO offers discounts including anti-theft, driver training, seat belt use, emergency military deployment, and membership and employees.
- AAA offers premium reductions for pay-in-full, education and occupation, good student, good driver, and anti-theft.
- State Farm may offer discounts for student away at school, defensive driving training, good student, Steer Clear safe driver discount, Drive Safe & Save, passive restraint, and multiple policy.
The illustration below illustrates the comparison of insurance costs with and without policy discounts. The premiums are based on a male driver, no claims or violations, Pennsylvania state minimum liability limits, comp and collision included, and $500 deductibles. The first bar for each age group shows insurance cost with no discounts. The second shows the rates with passive restraint, multiple policy, homeowner, accident-free, safe-driver, and claim-free discounts applied. When discounts are factored in, theamount saved on insurance for business use is 28% or $585.
Cost comparison with and without full coverage
Buying cheaper insurance is important to most vehicle owners, and one good way to pay less for insurance for business use is to not pay for full coverage. The information below shows the comparison of insurance rates with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The premium estimates are based on no claims, a clean driving record, $100 deductibles, single marital status, and no other discounts are factored in.
If averaged out across all ages, full coverage on your policy costs an additional $2,103 per year more than insuring for liability only. Many drivers will wonder if paying for full coverage is worth it. There is no exact formula to eliminate physical damage coverage on your policy, but there is a general convention. If the annual cost of having full coverage is more than 10% of replacement cost minus your deductible, then you might want to consider buying only liability coverage.
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 you would receive is $4,500 after the policy deductible has been paid. If you are paying more than $450 a year for physical damage coverage, then you might want to consider buying only liability coverage.
There are a few situations where only buying liability is not financially feasible. If you still have a loan on your vehicle, you have to carry full coverage in order to prevent your loan from defaulting. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should not opt for liability only.
If you aren’t sure which coverage to buy and prefer to get some professional advice when trying to find lower insurance rates for business use, the professional agents shown below can probably aid you in deciding which insurance coverage will be best for you. To find a Philadelphia insurance agent close to where you live, click the button after the list or click here to compare price quotes.
- Dennis Jackson – State Farm Insurance Agent
6200 Frankford Ave – Philadelphia, PA 19135 – (215) 289-5179 - Wade Insurance Agency
143 E Roosevelt Blvd – Philadelphia, PA 19120 – (215) 457-4995 - HandM Insurance Agency
5829 Rising Sun Ave – Philadelphia, PA 19120 – (215) 745-8001
More Philadelphia, PA insurance agents
Ideas for finding low-cost auto insurance for business use
Below you’ll find a few thrifty solutions that can help Pennsylvania drivers buy more affordable coverage.
- Improve your credit rating
- Don’t waste money on full coverage for older vehicles
- Get cheaper liability coverage by choosing a safer vehicle
- Avoid preventable accidents
- Save money by observing traffic laws and speed limits
- Raise your physical damage coverage deductibles
- Shop around for lower rates once a year
The last item on the list is very necessary, as we hit on in this write-up. Car insurance rates fluctuate constantly, so don’t be hesitant to change to a new company if a more affordable price is available. Being loyal to a particular company is commendable, but it isn’t a good idea if that inflexibility results in costing you money that could be used for better things. It takes less than five minutes to compare prices and find cheaper auto insurance for business use in Philadelphia.