Trying to buy cost effective car insurance is not easy, and deciding which companies have the lowest-priced insurance rates for business use may require even more shopping around.
Each company uses a different method to determine rates, so we need to take a look at the most affordable insurance companies in Kentucky. It’s important that readers know that Louisville insurance rates are impacted by many factors which can significantly increase or decrease the policy premium. This price fluctuation is why Kentucky drivers need to shop around with many companies to get the lowest auto insurance quotes for business use. Insurance rates can be determined by many things and change frequently, so the best option when you bought your policy may now be an over-priced policy.
Find the Best Cheap Insurance for Business Use
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,126 |
| 2 | Kentucky Farm Bureau | $1,128 |
| 3 | USAA | $1,175 |
| 4 | Auto-Owners | $1,413 |
| 5 | Motorists Mutual | $1,601 |
| 6 | Grange Mutual | $1,609 |
| 7 | Travelers | $1,680 |
| 8 | State Farm | $1,812 |
| 9 | Westfield | $1,814 |
| 10 | Safe Auto | $1,913 |
| 11 | Nationwide | $2,064 |
| 12 | Electric | $2,076 |
| 13 | Progressive | $2,077 |
| 14 | State Auto | $2,188 |
| 15 | GEICO | $2,341 |
| 16 | Encompass | $2,382 |
| 17 | Safeco | $2,709 |
| 18 | Shelter | $3,167 |
| 19 | MetLife | $3,177 |
| 20 | Liberty Mutual | $3,708 |
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Cincinnati Insurance has some of the most affordable car insurance rates in Louisville at around $1,126 per year. This is $1,017 less than the average premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual also qualify as some of the cheaper Louisville, KY car insurance companies.
As depicted above, if you are a customer of Kentucky Farm Bureau and switched to Cincinnati Insurance, you might achieve an annual savings of in the vicinity of $2. Policyholders with USAA might save as much as $49 a year, and Auto-Owners policyholders might reduce prices by as much as $287 a year.
Remember that these prices are averages for all ages of drivers and types of vehicles and and are not calculated with a vehicle location for business use. So the insurer that can offer you the best rate may not even be in the top 21 companies shown above. That helps illustrate why you need to compare rates from multiple companies using your own specific driver information and vehicle.
For using your car for business, one of the largest factors that are used to help calculate insurance cost is where you normally keep your vehicle in Louisville. Cities with larger populations tend to have more expensive car insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates benefit from having to pay less for coverage.
The information below sorts the most expensive cities in Kentucky for business use in which to buy car insurance. Louisville shows up at #1 with an annual cost of $2,090 for the average policyholder, which is around $174 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Louisville | $2,090 |
| 2 | Frankfort | $1,742 |
| 3 | Jeffersontown | $1,736 |
| 4 | Saint Matthews | $1,694 |
| 5 | Ashland | $1,656 |
| 6 | Paducah | $1,647 |
| 7 | Radcliff | $1,638 |
| 8 | Madisonville | $1,616 |
| 9 | Elizabethtown | $1,611 |
| 10 | Murray | $1,597 |
| 11 | Danville | $1,549 |
| 12 | Hopkinsville | $1,538 |
| 13 | Covington | $1,532 |
| 14 | Richmond | $1,520 |
| 15 | Lexington | $1,514 |
| 16 | Georgetown | $1,506 |
| 17 | Winchester | $1,501 |
| 18 | Henderson | $1,495 |
| 19 | Florence | $1,471 |
| 20 | Independence | $1,466 |
| 21 | Bowling Green | $1,461 |
| 22 | Nicholasville | $1,459 |
| 23 | Owensboro | $1,432 |
| 24 | Erlanger | $1,420 |
| 25 | Fort Thomas | $1,397 |
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Prices are approximated as the specific Louisville residence address can alter auto insurance rates substantially.
The make and model of vehicle requiring insurance is one of the largest factors in finding the best cheap insurance for business use. Vehicles with lots of speed or power, poor safety features, or a high likelihood of having liability claims will cost significantly more to insure than safer, lower-performance models. The list below ranks car insurance premiums for some of the cheapest vehicles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $1,987 |
| Ford Edge SE 2WD | $1,996 |
| Dodge Grand Caravan CV | $2,036 |
| Honda CR-V EX-L 2WD | $2,108 |
| Toyota RAV4 2WD | $2,151 |
| GMC Sierra SL Extended Cab 2WD | $2,156 |
| Chevrolet Malibu Hybrid | $2,151 |
| Volkswagen Jetta S 2.5 Station Wagon | $2,163 |
| Ford Explorer Eddie Bauer AWD | $2,193 |
| Toyota Prius | $2,209 |
| Honda Odyssey LX | $2,260 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $2,268 |
| Nissan Rogue S 2WD | $2,303 |
| GMC Sierra 2500HD SLE Extended Cab 4WD | $2,309 |
| Ford F-150 FX4 4WD | $2,400 |
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Data rating is based on single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Kentucky minimum liability limits. Discounts applied include multi-policy, claim-free, multi-vehicle, safe-driver, and homeowner. Estimates do not factor in vehicle location which can influence premium rates considerably.
Based upon these rates, you can assume that models like the Ford Escape, Ford Edge, Dodge Grand Caravan, and Honda CR-V should be some of the more affordable vehicles to insure for using your car for business. Auto insurance rates will be more expensive because of the fact that there is more claim risk for business use, but overall those vehicles will have the cheapest auto insurance rates that you are likely to find.
Cost comparison with and without full coverage
Saving money when shopping for insurance is probably important to most drivers, and one of the easiest ways to pay less for insurance for business use is to only buy liability insurance. The example below illustrates the difference between insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The premiums assume no violations or claims, $100 deductibles, marital status is single, and no other discounts are factored in.
As an average, full coverage costs $1,873 per year over and above liability coverage. That is a significant amount which raises the question when is the right time to remove full coverage. There is no clear-cut formula for dropping physical damage coverage on your policy, but there is a general guideline. If the annual cost of comprehensive and collision coverage is more than around 10% of replacement cost minus your deductible, then it’s probably a good time to buy liability coverage only.
There are some cases where dropping physical damage coverage is not in your best interest. If you still owe a portion of the original loan, you have to maintain full coverage as part of the loan conditions. Also, if you don’t have enough money to buy a different vehicle in the event your current vehicle is totaled, you should not buy liability only.
Discounts on Louisville auto insurance rates
Auto insurance companies that sell policies for business use may also provide premium discounts that can reduce rates by as much as 40% or more if you are eligible to receive them. Large insurance companies and some of the discounts are detailed below.
- Progressive offers premium reductions for multi-vehicle, homeowner, online signing, multi-policy, continuous coverage, good student, and online quote discount.
- Farmers Insurance includes discounts for distant student, switch companies, mature driver, alternative fuel, and youthful driver.
- Farm Bureau may offer discounts for safe driver, 55 and retired, youthful driver, multi-vehicle, and renewal discount.
- State Farm policyholders can earn discounts including Drive Safe & Save, multiple autos, Steer Clear safe driver discount, accident-free, defensive driving training, student away at school, and anti-theft.
- GEICO may include discounts for military active duty, defensive driver, emergency military deployment, federal employee, and anti-lock brakes.
- SAFECO may have discounts that include teen safety rewards, teen safe driver, safe driver, homeowner, anti-theft, and anti-lock brakes.
- Liberty Mutual offers discounts including exclusive group savings, newly married, good student, teen driver discount, new graduate, multi-car, and hybrid vehicle.
The chart below shows the comparison of car insurance costs with and without discounts applied. The premiums assume a male driver, a clean driving record, no at-fault accidents, Kentucky state minimum liability limits, full physical damage coverage, and $250 deductibles.
The first bar for each age group shows the price with no discounts. The second shows the rates with multiple vehicle, anti-theft, safe-driver, homeowner, marriage, and defensive driving course discounts applied. When discounts are factored in, theaverage amount saved on insurance for business use is 28% or $474.
How accidents and tickets impact rates
The common sense way to receive cheap insurance rates for using your car for business is to be an attentive driver and avoid traffic citations and accidents. The chart below demonstrates how traffic citations and at-fault accidents can drive up yearly insurance costs for different ages of insureds. The premiums assume a single male driver, full coverage, $250 deductibles, and no discounts are factored in.
In the chart above, the average cost of car insurance in Kentucky per year with no violations or accidents is $1,718. Add in one speeding ticket and the average cost increases to $1,933, an increase of $216 each year. Now add one accident along with the one speeding ticket and the yearly cost of insurance for business use increases to an average of $2,539. That’s an increase of $821, or $68 per month, just for being a less-than-perfect driver!