For using your car for business, one of the largest criteria that are looked at to help calculate the cost of insurance is your address. Areas with more people or higher crime rates tend to have higher auto insurance costs, whereas areas with less crime or weather claims tend to receive cheaper rates.
The following table lists the most expensive cities in California for business use to purchase car insurance in. Sacramento makes the list at #5 with an annual rate of $1,669 for the average policyholder, which is about $139 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Los Angeles | $2,146 |
| 2 | Glendale | $2,142 |
| 3 | Oakland | $1,704 |
| 4 | San Francisco | $1,693 |
| 5 | Sacramento | $1,669 |
| 6 | Long Beach | $1,626 |
| 7 | San Bernardino | $1,580 |
| 8 | Stockton | $1,556 |
| 9 | Moreno Valley | $1,551 |
| 10 | Modesto | $1,547 |
| 11 | Fontana | $1,535 |
| 12 | Santa Clarita | $1,533 |
| 13 | Fresno | $1,517 |
| 14 | Garden Grove | $1,508 |
| 15 | Santa Ana | $1,497 |
| 16 | Riverside | $1,482 |
| 17 | Anaheim | $1,430 |
| 18 | Huntington Beach | $1,402 |
| 19 | San Jose | $1,395 |
| 20 | Bakersfield | $1,394 |
| 21 | Irvine | $1,384 |
| 22 | San Diego | $1,368 |
| 23 | Fremont | $1,348 |
| 24 | Chula Vista | $1,337 |
| 25 | Oxnard | $1,304 |
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Prices are approximated as the specific Sacramento residence address can change premiums noticeably.
Finding dependable, reasonably-priced car insurance is hard enough, and figuring out which companies quote the cheapest auto insurance rates for business use involves even more rate comparisons. Each insurer uses slightly different criteria for determining rates in each state, so let’s begin by examining the auto insurance companies that tend to be cheaper in Sacramento.
It’s important to know that Sacramento, CA auto insurance rates are determined by lots of factors that control the policy price. This price variation is why consumers need to take the time to do a thorough rate comparison to get affordable insurance rates for business use. Auto insurance prices are determined by many things and can change substantially, so the best price the last time you shopped your coverage around may now be costing you a lot of money.
Find Cheaper Auto Insurance for Business Use
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,121 |
| 2 | Wawanesa | $1,146 |
| 3 | Century National | $1,178 |
| 4 | CSAA | $1,186 |
| 5 | Nationwide | $1,263 |
| 6 | 21st Century | $1,379 |
| 7 | Grange | $1,491 |
| 8 | Allstate | $1,513 |
| 9 | GEICO | $1,529 |
| 10 | Mercury | $1,533 |
| 11 | Allied | $1,541 |
| 12 | Progressive | $1,542 |
| 13 | MetLife | $1,638 |
| 14 | The Hartford | $1,639 |
| 15 | State Farm | $1,699 |
| 16 | Unitrin | $1,699 |
| 17 | Esurance | $1,705 |
| 18 | Bristol West | $1,795 |
| 19 | Travelers | $1,842 |
| 20 | Farmers | $1,966 |
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USAA has some of the best car insurance rates in Sacramento at around $1,121 a year. This is $530 less than the average policy premium paid by California drivers of $1,651. Wawanesa, Century National, CSAA, and Nationwide would also make the list of some of the more affordable Sacramento, CA car insurance companies.
As shown in the table above, if you are a customer of CSAA and switched to Wawanesa, you might realize annual savings of upwards of $40. Policyholders with Nationwide might save as much as $117 a year, and 21st Century policyholders might lower prices by $233 a year.
If you want to see how much you could save, click here to start your free quote or quote prices from the following companies.
Understand that those premium estimates are averages for all ages of drivers and types of vehicles and and are not figured with an exact vehicle garaging location for business use. So the auto insurance company that fits your age and vehicle best may not even be in the top 24 companies in the list above. That is why you need to quote rates from as many companies as possible using your own driver information and specific vehicle type.
Do you need full coverage?
Paying less for auto insurance is important to most drivers, and one of the quickest ways to lower the cost of insurance for business use is to not pay for full coverage. The information below illustrates the difference between insurance costs with liability coverage only compared to full coverage. The premiums assume no violations or accidents, $500 deductibles, single marital status, and no discounts are taken into consideration.
If we average all the age groups together, full coverage costs $2,273 per year more than just buying liability insurance. Many of you may wonder if full coverage is worth the money. There is no specific rule that is best for determining when to drop physical damage coverage, but there is a broad guideline. If the annual cost of your full coverage insurance is more than 10% of replacement cost minus your deductible, then you might want to consider buying only liability coverage.
Impact of violations and accidents on rates in Sacramento
The common sense way to snag the cheapest auto insurance prices for using your car for business is to drive safely and avoid getting tickets or having accidents. The chart below illustrates how speeding tickets and fender-benders raise car insurance rates for each age group. The premiums are based on a married female driver, full coverage, $1,000 deductibles, and no additional discounts are factored in.
The data charted above shows the average cost of auto insurance per year with no violations or accidents is $1,418. Get written up for one speeding ticket and the average cost hikes up to $1,657, an increase of $239 each year. Next add one accident along with the one speeding ticket and the annual cost of auto insurance for business use jumps again to an average of $2,313. That’s an increase of $895, or $75 per month, just for not driving carefully!
Types of discounts on Sacramento car insurance
Auto insurance companies that offer cheap quotes for business use could also offer policy discounts that can reduce rates by as much as 35% or more if you are eligible to receive them. A few popular companies and some of the discounts are:
- 21st Century may offer discounts for air bags, homeowners, student driver, anti-lock brakes, and teen driver.
- Progressive offers discounts including homeowner, continuous coverage, multi-vehicle, good student, online signing, and online quote discount.
- State Farm offers discounts for good student, multiple policy, good driver, safe vehicle, and Steer Clear safe driver discount.
- Nationwide includes discounts for easy pay, defensive driving, anti-theft, family plan, and business or organization.
- Esurance offers premium reductions for anti-lock brakes, claim free, DriveSense, emergency road assistance, anti-theft, and paid-in-full.
- The Hartford has savings for defensive driver, good student, driver training, air bag, and anti-theft.
The chart below compares car insurance rates with and without discounts applied. The costs are based on a female driver, a clean driving record, no claims, California 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 lower bar shows the rates with accident-free, passive restraint, multiple policy, homeowner, claim-free, and multiple vehicle discounts applied. When discounts are applied, theaverage yearly reduction on auto insurance for business use is 28% or $662.
If you aren’t sure which coverage you need and prefer to get some guidance when shopping for cheaper insurance for using your car for business, the professional agents shown below are a good start to provide answers to your questions and help you determine which coverage meets your needs best.
To find an auto insurance agency using an interactive map, click the button below the list.
- Thrive Insurance Agency
1353 Fulton Ave – Sacramento, CA 95825 – (916) 339-6490 - Styrsky Insurance Agency
706 56th St – Sacramento, CA 95819 – (916) 361-8114 - GEICO Insurance Agent
5211 Madison Ave – Sacramento, CA 95841 – (916) 923-5050