For using your car for business, one of the more important factors that are looked at to determine car insurance rates is where you live. Areas with increased crime or more people like Denver, Pueblo, and Commerce City tend to have more expensive auto insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower rates.
The following table rates the most expensive places in Colorado for business use to buy car insurance in.
|Rank||City||Average Per Year|
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Rate quotes are estimated as zip code location can impact coverage rates considerably.
The car, truck, or SUV that is being insured is a significant factor when consumers are trying to find the most economical auto insurance for business use. Vehicles with higher performance, poor crash test ratings, or high incidents of liability claims will cost more to insure than more economical and safe models. The list below illustrates coverage costs for the cheapest automobiles to buy coverage for.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$954|
|Honda CR-V LX 2WD||$964|
|Dodge Grand Caravan CV||$973|
|Ford Focus S 4-Dr Sedan||$1,009|
|Toyota RAV4 Sport 4WD||$1,028|
|Hyundai Elantra GLS 4-Dr Sedan||$1,085|
|Toyota Corolla LE||$1,094|
|Hyundai Sonata GLS 4-Dr Sedan||$1,101|
|Chevrolet Malibu LTZ||$1,104|
|Ford F-150 XLT Regular Cab 4WD||$1,108|
|Toyota Tacoma 4WD||$1,113|
|Chevrolet Impala LS||$1,108|
|Dodge Ram Crew Cab ST 4WD||$1,120|
|Volkswagen Jetta SE 2.5 Station Wagon||$1,122|
|Jeep Grand Cherokee Laredo 2WD||$1,129|
|Nissan Altima 2.5 4-Dr Sedan||$1,135|
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Premium data assumes single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include claim-free, safe-driver, homeowner, multi-vehicle, and multi-policy. Rates do not factor in vehicle location which can modify price quotes greatly.
By looking at the data, you can infer that cars like the Ford Escape, Honda CR-V, Dodge Grand Caravan, Ford Focus, and Toyota RAV4 should be some of the cheapest vehicles to insure for using your car for business. The price of auto insurance will tend to be more expensive anyway because there is more exposure for business use, but overall those vehicles will most likely have the cheapest car insurance rates available.
Full coverage versus liability only rates
Reducing the cost of car insurance is the goal of most drivers, and one great way to buy cheap insurance for business use in Colorado is to only buy liability insurance. The illustration below shows the difference between car insurance rates with liability coverage only compared to full coverage. The rate quotes are based on no claims, a clean driving record, $100 deductibles, single marital status, and no additional discounts are factored in.
If averaged for all ages, comprehensive and collision coverage on your policy costs an additional $2,743 per year more than insuring for liability only. That may make you wonder if buying full coverage is worth the expense. There is no definitive rule of when to drop physical damage insurance, 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 you might consider buying liability only.
Impact of citations and accidents on insurance rates
The best way to find the most affordable car insurance rates in Colorado for using your car for business is to drive cautiously and not have accidents or get tickets. The diagram below highlights how speeding tickets and fender-benders can affect insurance costs for different age groups. The rates are based on a single male driver, comprehensive and collision coverage, $100 deductibles, and no discounts are factored in.
In the chart above, the average cost of a car insurance policy per year with no accidents or violations is $2,013. Receive two speeding tickets and the average cost jumps to $2,671, an increase of $658 each year. Now include one accident along with the two speeding tickets and the annual cost of car insurance for business use in Colorado jumps again to an average of $3,331. That's an increase of $1,318, or $110 per month, just for not driving carefully!
Last year's bargain might be this year's rip off
Colorado car insurance rates are calculated based on many things which can substantially change the cost of coverage. Improving your credit score, buying a new vehicle, or getting a speeding ticket can produce rate changes that can make some companies cheaper than competitors.
And not only may your rating factors change, but insurance companies change the rates they charge in Colorado at least once a year in order to remain profitable. A period of increased losses may cause high rates, while a better claims history may produce lower-priced Colorado car insurance rates.
To illustrate this point, the chart below shows the cheapest car insurance in Colorado for a 30-year-old male driver with no prior accidents, a clean driving record, and a good credit history. If we compare prices based on his current situation, The Hartford may offer the most affordable car insurance rates in Colorado at $834 a year. This is $744 less than the average policy premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and GEICO are the rest of the most affordable Colorado auto insurance companies.
The chart below compares rates after we give the driver from the above example a claim, a lower credit rating, and a couple of points charged on his driving record. Because each insurer has a proprietary formula for setting prices, comparing prices could result in a different ranking of affordable Colorado car insurance companies as shown below.
Travelers now has the best price on car insurance in Colorado with State Farm, American Family, Progressive, and Amica completing the list. This example shows why it is crucial to compare lots of rates to get the most budget-friendly insurance quotes for business use.
Car insurance prices are calculated by many things and change dramatically, so the best option when you bought your policy may now be quite expensive.