The words “low-priced” and “insurance” really shouldn’t be used in the same sentence, specifically when shopping around for the best car insurance rates for a company car. To help control this cost, let’s go over some of the factors that determine insurance prices, and find out if you can lower the price of the next policy you buy.
For your employer’s vehicle, one of the largest criteria that aid in calculating insurance cost is where you keep your vehicle. Regions with more people or even just more weather-related claims likely pay more, whereas less populated areas benefit from lower prices.
The next table shows the priciest cities in Louisiana for a company car to purchase car insurance in. New Orleans comes in at #1 with an annual rate of $2,914 for the average policy, which is approximately $243 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | New Orleans | $2,914 |
| 2 | Marrero | $2,569 |
| 3 | Harvey | $2,487 |
| 4 | Terrytown | $2,480 |
| 5 | Metairie | $2,254 |
| 6 | Kenner | $2,247 |
| 7 | Central | $2,223 |
| 8 | Baton Rouge | $2,209 |
| 9 | Shenandoah | $2,204 |
| 10 | Prairieville | $2,169 |
| 11 | Alexandria | $2,117 |
| 12 | Hammond | $2,107 |
| 13 | Lafayette | $1,995 |
| 14 | Laplace | $1,991 |
| 15 | Slidell | $1,977 |
| 16 | Sulphur | $1,974 |
| 17 | Lake Charles | $1,974 |
| 18 | Monroe | $1,970 |
| 19 | Shreveport | $1,894 |
| 20 | New Iberia | $1,852 |
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Rate quotes are comparative as the garaging address in New Orleans can modify coverage rates substantially.
Establishing which company has the best insurance rates for a company car involves more time than just getting one or two price quotes. Each insurance company uses a slightly different approach to set premium rates, so we will examine the insurance companies with the most affordable rates in New Orleans.
Cheapest Insurance Rates in Louisiana
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,626 |
| 2 | MetLife | $1,836 |
| 3 | GEICO | $1,945 |
| 4 | Progressive | $1,946 |
| 5 | Safeway | $2,154 |
| 6 | Southern Farm Bureau | $2,181 |
| 7 | California Casualty | $2,246 |
| 8 | State Farm | $2,359 |
| 9 | Safe Auto | $2,627 |
| 10 | Allstate | $3,065 |
| 11 | Encompass | $3,138 |
| 12 | Liberty Mutual | $3,608 |
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USAA quotes some of the most affordable car insurance rates in New Orleans at around $1,626 per year. MetLife, GEICO, Progressive, and Safeway would also make the list of some of the more affordable New Orleans, LA insurance companies.
As depicted above, if you are currently insured with MetLife and switched to USAA, you might realize savings of approximately $210. Policyholders with GEICO could save as much as $319 a year, and Progressive customers might lower prices by up to $320 a year.
These premiums are averages for all types of drivers and the different vehicles they drive and and are not calculated with a vehicle location for a company car. So the insurer that is best for you may not even be in the top 12 companies in the list above. That’s why you need to compare as many prices as possible using your own driver and vehicle profiles.
The vehicle model that is being insured is one of the largest factors that determines if you can find economical car insurance for a company car. Vehicles with limited top-end speed, excellent safety ratings, or a positive history of liability claims will cost much less to insure than adrenaline junky models. The next list estimates car insurance costs for a handful of the cheaper vehicles to insure in Louisiana.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord EX-L 4-Dr Sedan | $2,413 |
| Ford F-150 STX Super Cab 2WD | $2,450 |
| Ford Edge SEL 2WD | $2,585 |
| Toyota Tacoma 2WD | $2,595 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $2,680 |
| Ford Escape XLS 4WD | $2,731 |
| Honda CR-V LX 2WD | $2,738 |
| GMC Sierra SLE Extended Cab 4WD | $2,826 |
| Toyota Prius | $2,835 |
| GMC Sierra 3500HD SLT Extended Cab 2WD | $2,877 |
| Chevrolet Impala LS | $2,965 |
| Kia Optima SX | $3,016 |
| Toyota RAV4 2WD | $3,022 |
| Dodge Grand Caravan SE | $3,060 |
| Chevrolet Malibu LT | $3,077 |
| Ford Explorer Eddie Bauer AWD | $3,083 |
| Chevrolet Silverado 2500HD LT Crew Cab 2WD | $3,151 |
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Table data assumes single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Louisiana minimum liability limits. Discounts applied include claim-free, safe-driver, homeowner, multi-vehicle, and multi-policy. Estimates do not factor in New Orleans, LA location which can change auto insurance rates significantly.
By looking at the data, vehicles like the Honda Accord, Ford F-150, Ford Edge, and Toyota Tacoma will be a few of the more affordable vehicles to insure for your employer’s vehicle.
The illustration below demonstrates how deductible levels can influence premium costs when trying to find cheap insurance for a company car. The rates are based on a married male driver, full coverage, and no additional discounts are factored in.
In the chart above, a 40-year-old driver could pocket $388 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $586 by changing to a $1,000 deductible. Even younger insureds, like the 20-year-old example, can cut $1,294 annually by choosing a higher deductible. When increasing deductibles, it will now be necessary to have enough in a savings account to pay the extra out-of-pocket expense, which deters some people from using high deductibles.
Discount New Orleans car insurance
Insurance companies that provide coverage for a company car may also provide rate discounts that could potentially reduce rates by as much as 35% if you meet specific criteria. A list of companies and the discounts they provide can be read below.
- Travelers offers discounts for good student, multi-car, IntelliDrive, student away at school, driver training, early quote, and new car.
- 21st Century includes discounts for early bird, anti-lock brakes, teen driver, 55 and older, theft prevention, driver training, and student driver.
- State Farm has discounts for Steer Clear safe driver discount, Drive Safe & Save, anti-theft, multiple policy, and multiple autos.
- GEICO may offer discounts for air bags, driver training, anti-lock brakes, five-year accident-free, daytime running lights, good student, and membership and employees.
- SAFECO may include discounts for anti-theft, bundle discounts, accident prevention training, homeowner, safe driver, drive less, and teen safe driver.
- AAA discounts include multi-policy, pay-in-full, good driver, education and occupation, and multi-car.
The chart below visualizes the comparison of insurance premiums with and without discounts applied to the rates. The data assumes a male driver, no violations or accidents, Louisiana state minimum liability limits, comprehensive and collision coverage, and $500 deductibles. The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with passive restraint, claim-free, anti-theft, accident-free, marriage, and vehicle safety discounts applied. When taking advantage of discounts, the average amount saved each year on insurance for a company car is 28% or $825.
Full coverage rates compared to liability only
Paying less for insurance is the goal of the majority of people, and one good way to buy cheaper insurance for a company car is to not insure for full coverage. The information below illustrates the difference between car insurance rates with full coverage compared to only the Louisiana minimum liability coverage. The price estimates are based on no accidents or driving violations, $100 deductibles, drivers are single, and no discounts are applied to the premium.
Averaged for all ages 20 through 70, physical damage coverage costs $3,620 per year more than just buying liability only. Many of you may wonder if buying full coverage is worth the expense. There isn’t a steadfast formula of when to eliminate full coverage on your policy, but there is a general guideline. If the yearly cost for physical damage coverage is 10% or more of the vehicle’s replacement cost less your deductible, then you might want to think about dropping full coverage.
For example, let’s say your vehicle’s settlement value is $9,000 and you have $1,000 policy deductibles. If your vehicle is severely damaged, the most your company will settle for is $8,000 after paying the physical damage deductible. If you are paying in excess of $800 a year for comprehensive and collision coverage, the it may be a good time to stop paying for full coverage.
There are some cases where dropping full coverage is not a good idea. If you still have a loan on your vehicle, you have to carry full coverage to satisfy the loan requirements. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is totaled, you should not eliminate full coverage.