Establishing which companies quote the lowest-priced auto insurance rates for business use will involve a bit more work in order to find the lowest price quote. Each auto insurance company has their own process to set policy rates, so let’s look at the rankings for the lowest cost auto insurance companies in Massachusetts.
It’s important to understand that Boston, MA auto insurance rates are calculated based on many things which can substantially decrease or increase the cost of a policy. Improving your credit score, increasing liability limits, or having an at-fault accident may prompt premium changes resulting in some companies being cheaper than competitors.
Best Auto Insurance Prices for Business Use
|Rank||Company||Cost Per Year|
|2||National Grange Mutual||$823|
|7||Norfolk and Dedham||$1,036|
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State Farm normally has some of the most affordable car insurance rates in Boston at around $719 annually. National Grange Mutual, GEICO, Commerce Group, and OneBeacon would also be considered some of the cheapest Boston, MA insurance companies.
In the rate table above, if you currently have coverage with National Grange Mutual and switched to State Farm, you may see annual savings of about $104. Customers with GEICO could save as much as $123 a year, and Commerce Group insureds might cut rates by $156 a year.
Understand that those rates are averaged for all types of drivers and the different vehicles they drive and are not factoring in an exact location for business use. So the auto insurance company that is most affordable for your situation may not even be in the list above. That underscores the importance of why you need to quote rates from as many companies as possible using your own driver information and specific vehicle type.
One of the more important things that are used to help calculate insurance cost is where you live. Areas with more people or even just a higher incidence of claims tend to pay more, whereas areas that tend to be more rural benefit from lower rates.
The illustration below sorts the most expensive areas in Massachusetts for business use to purchase auto insurance in. Boston is listed at #7 having an annual price of $1,788 for the average policy, which is approximately $149 each month.
|Rank||City||Premium Per Year|
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Table data uses approximated as the garaging address in Boston can revise coverage rates significantly.
Types of discounts on Boston auto insurance
Insurance companies that provide coverage for business use could also offer price discounts that may potentially lower prices by as much as 40% or more if you are eligible. Companies and a summarized list of policyholder discounts include:
- Travelers has savings for new car, multi-policy, IntelliDrive, student away at school, continuous insurance, and driver training.
- 21st Century offers discounts for student driver, theft prevention, good student, driver training, and 55 and older.
- State Farm policyholders can earn discounts including multiple autos, good student, student away at school, good driver, and Steer Clear safe driver discount.
- GEICO offers discounts including air bags, multi-policy, good student, multi-vehicle, and federal employee.
- SAFECO discounts include bundle discounts, drive less, anti-theft, teen safety rewards, and safe driver.
- AAA has discounts for pay-in-full, anti-theft, multi-policy, good driver, and good student.
The diagram below shows the comparison of auto insurance costs with and without policy discounts. The premiums assume a male driver, no violations or claims, Massachusetts state minimum liability limits, comprehensive and collision coverage, and $100 deductibles. The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with defensive driving course, multiple vehicle, claim-free, marriage, anti-theft, and accident-free discounts applied. When discounts are applied, theaverage amount saved on auto insurance for business use is 28% or $528.
Finding the highest-rated auto insurance company can be rather challenging considering how many companies sell coverage in Boston. The rank data shown below could help you pick which companies you want to consider when shopping around. The rankings below are for major nationwide insurance companies, so companies with more of a regional focus are not taken into consideration for these rankings.
Top 10 Large Auto Insurance Companies Overall in Boston
- The Hartford
- State Farm
- Farmers Insurance
- Safeco Insurance
- Liberty Mutual
- AAA Insurance
Top 10 Large Auto Insurance Companies in Boston Ranked by Customer Satisfaction
- The Hartford – 93%
- Progressive – 90%
- USAA – 87%
- State Farm – 87%
- Travelers – 87%
- Safeco Insurance – 86%
- AAA Insurance – 86%
- Farmers Insurance – 85%
- GEICO – 85%
- American Family – 85%
Do you need full coverage?
Paying a lower price for auto insurance is probably important to the majority of drivers, and one great way to buy cheaper insurance for business use is to only pay for liability coverage. The illustration below illustrates the difference between insurance rates with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The information is based on a clean driving record, no at-fault accidents, $1,000 deductibles, single marital status, and no discounts are applied.
If we average the cost for ages 20 through 70, physical damage coverage costs an additional $1,873 per year more than insuring for liability only. A very common question is if full coverage is worth the money. There is no definitive formula of when to stop paying for comprehensive and collision coverage on your policy, but there is a general guideline you can use. If the yearly cost of full coverage is 10% or more of the replacement cost minus the deductible, then you might consider buying liability only.
For example, let’s say your vehicle’s book value is $3,000 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, the most your company will settle for is $2,000 after the policy deductible has been paid. If you are paying in excess of $200 annually to have full coverage, then you might consider buying liability only.
There are a few cases where only buying liability is not advised. If you still have a loan on your vehicle, you are required to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your emergency fund is not enough to purchase a different vehicle in case of an accident, you should maintain full coverage.
If you like to get some professional input when buying car insurance for business use, the insurance agencies below are willing to help you make a decision which coverage fits your budget.
To locate a Boston auto insurance agent in your neighborhood, click the link at the bottom or click here to compare price quotes.
Baltic Insurance Agency
597 E Broadway – South Boston, MA 02127 – (617) 268-6030
Allstate Insurance: Abner Joseph
571 Dudley St Ste A – Boston, MA 02125 – (617) 442-9490
Ironside Insurance Group, LLC
112 Water St #401 – Boston, MA 02109 – (617) 227-2400
125 High St – Boston, MA 02110 – (617) 443-9300
How to find low-cost car insurance for business use
It is possible to find better rates, and here are some of the better penny-pinching solutions that can help drivers find more affordable auto insurance.
- Raise deductibles to save money
- Improve your credit score
- Buy your homeowners policy from the same company as your auto insurance
- Do not get tickets
- Don’t have frequent claims
- Accident-free drivers may qualify for discounts
- Shop around and save
The final tip is certainly important, as we discussed in the prior information. Insurance rates can change significantly in a year, so don’t be tentative to switch companies if a more affordable price is available.
Having brand loyalty is commendable, but it’s not a great idea if that loyalty results in overpaying money that could be used for better things. Take a few minutes and compare prices and find cheaper insurance for business use in Boston.