One of the many things that aid in calculating the amount you pay for auto insurance is your address. Areas with increased crime or more people will most likely pay more, whereas less populated areas have the luxury of cheap car insurance rates.
The next table sorts the most expensive cities in Minnesota for business use to buy an auto insurance policy in. Minneapolis makes the list at #2 with an annual cost of $2,058 for car insurance, which is about $172 monthly.
|12||Saint Louis Park||$1,720|
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Prices are comparative as the vehicle garaging location can change insurance rates significantly.
Determining which companies have the most affordable insurance rates for business use takes a bit more work in order to find the best policy. Every car insurance company uses their own calculation for setting rates, so we will examine the insurance companies with the overall cheapest rates in Minnesota.
Best Auto Insurance Prices for Business Use
|Rank||Company||Cost Per Year|
|2||Farm Bureau Mutual||$805|
|6||West Bend Mutual||$972|
|14||Auto Club Group||$1,380|
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Travelers offers some of the best car insurance rates in Minneapolis at around $641 annually. This is $780 less than the average policy premium paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, Western National, and The Hartford would also be considered some of the more affordable Minneapolis, MN car insurance companies.
As shown above, if you currently have coverage with Western National and switched to Farm Bureau Mutual, you could realize an annual premium reduction of approximately $132. Customers with The Hartford might save as much as $149 a year, and West Bend Mutual insureds might realize rate reductions of up to $167 a year.
Bear in mind that those prices are averages across all insureds and vehicles and do not factor in a specific vehicle garaging location for business use. So the company that has the cheapest price for you may not even be in the top 24 companies shown above. That’s why you need to get auto insurance quotes using your own driver and vehicle profiles.
Safe drivers pay less for insurance
The recommended way to obtain the cheapest insurance rates for using your car for business is to be an attentive driver and not have accidents or get tickets. The chart below illustrates how violations and at-fault accidents can drive up insurance prices for different age groups. The prices are based on a married female driver, comp and collision included, $1,000 deductibles, and no discounts are taken into consideration.
The data in the chart shows the average cost of an auto insurance policy in Minneapolis per year with no accidents and a clean driving record is $1,357. Receive one speeding ticket and the average cost swells to $1,588, an increase of $231 each year. Now get two accidents along with the one speeding ticket and the annual cost of insurance for business use increases to an average of $3,752. That’s an increase of $2,395, or $200 per month, just for not driving safely!
Discounts on Minneapolis auto insurance
Insurers that offer cheap quotes for business use may also provide rate discounts that could reduce prices by 40% or more if you are eligible. Larger insurance companies and some of their more popular discounts are shown below.
- Farm Bureau has discounts for safe driver, multi-policy, good student, renewal discount, driver training, 55 and retired, and multi-vehicle.
- Liberty Mutual policyholders can earn discounts including new move discount, hybrid vehicle, new graduate, teen driver discount, multi-car, and exclusive group savings.
- State Farm offers discounts for multiple autos, safe vehicle, multiple policy, Drive Safe & Save, student away at school, good student, and driver’s education.
- Auto-Owners Insurance may offer discounts for air bags, company car, multi-policy, teen driver, mature driver, group or association, and paid in full.
- GEICO may include discounts for anti-lock brakes, military active duty, emergency military deployment, seat belt use, multi-policy, good student, and daytime running lights.
- SAFECO offers premium reductions for safe driver, bundle discounts, accident prevention training, drive less, and anti-theft.
The chart below visualizes the comparison of insurance premiums with and without some available policy discounts. The data is based on a female driver, no violations or accidents, Minnesota state minimum liability limits, comp and collision included, and $1,000 deductibles.
The first bar for each age group shows premium with no discounts. The second bar shows the rates with vehicle safety, accident-free, multiple policy, defensive driving course, marriage, and multiple vehicle discounts applied. When these discounts are applied, the average savings per year on insurance for business use is 28% or $354.
Why you are probably overpaying for car insurance
Minnesota insurance rates are based on many factors which can substantially decrease or increase the cost of coverage. Turning one year older, getting married, or getting into an accident may prompt premium changes that may make certain companies more affordable than competitors.
And not only may your rating factors change, but insurance companies modify pricing as often as every quarter to adjust for gains or losses. Significantly higher losses may cause higher rates, while a profitable period can result in cheaper Minneapolis car insurance rates.
For example, the data below shows rates for the cheapest car insurance in Minneapolis, MN for a 35-year-old female driver with no accidents or violations, and a good credit rating. If we estimate rates based on her current risk factors, Travelers quotes the cheapest car insurance rates in Minneapolis at $931 annually. This is $490 less than the average premium paid by Minnesota drivers of $1,421. Farm Bureau Mutual, USAA, Western National, and The Hartford are the remaining top five cheapest Minneapolis, MN auto insurance companies.
Now we will give the driver from above a claim, bad credit, and a few traffic violations. Due to the fact that every insurance company uses a different method to determine rates, comparing insurance quotes will most likely result in a different list of the cheapest car insurance companies in Minneapolis as shown below.
Farm Bureau Mutual now has the lowest price in Minneapolis with USAA, Allied, Western National, and Travelers now being in the top five. This example illustrates why drivers need to compare lots of rates when trying to get the cheapest car insurance quotes for business use.
Insurance prices can be determined by many different factors and can change substantially, so the best price a year ago may now be quite expensive.
If you have questions and prefer to get some help when buying car insurance for business use, the agencies below can most likely help you determine which coverages are best. To find an agent close to where you live, click the link at the bottom or click here to compare price quotes.
Allstate Insurance: Mohamud Isse
331 E Lake St – Minneapolis, MN 55408 – (612) 353-6667
Kim Nybo – State Farm Insurance Agent
2724 University Ave SE – Minneapolis, MN 55414 – (612) 767-7775
Farmers Insurance – Matthew Nye
2104 Stevens Ave #309 – Minneapolis, MN 55404 – (612) 979-2330
Insurance Advantage Agency LLC
7600 Parklawn Ave #350 – Minneapolis, MN 55435 – (952) 746-5770