One of the many components that are looked at to determine the annual cost of car insurance is the neighborhood you call home in Chicago. Areas with increased crime or more people are more likely to have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims benefit from lower prices.
The illustration below sorts the most costly cities in Illinois for business use to purchase a policy in. Chicago comes in at #1 with an annual premium of $1,544 for coverage, which is about $129 each month.
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Rates are approximated as zip code location can influence auto insurance rates substantially.
The make and model of vehicle on the policy is probably the biggest factor when shopping around for cheap auto insurance for business use. Vehicles with lots of horsepower, poor safety ratings, or a track record of large liability claims will cost significantly more to insure than safer, lower-performance models.
The next table outlines car insurance rates for some of the most economical automobiles to buy coverage for.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$2,088|
|Ford F-150 STX Regular Cab 2WD||$2,295|
|GMC Sierra SLE Crew Cab 2WD||$2,468|
|Jeep Wrangler Unlimited Sport 4WD 4-Dr||$2,557|
|Honda CR-V EX-L 2WD||$2,619|
|Ford Fusion SE 4-Dr Sedan||$2,645|
|Honda Accord LX-S 2-Dr Coupe||$2,777|
|Ford Focus SE 2-Dr Coupe||$2,782|
|Ford Escape Limited 4WD||$2,780|
|Toyota Camry Hybrid||$2,826|
|Toyota Camry Hybrid||$2,833|
|Chevrolet Malibu LS||$2,832|
|Toyota RAV4 Limited 4WD||$2,837|
|Ford Explorer Limited 2WD||$2,885|
|Ford Edge Limited 2WD||$2,967|
|Chevrolet Impala LS||$2,977|
|Dodge Grand Caravan Hero||$3,029|
|Chevrolet Equinox LTZ AWD||$3,032|
|Jeep Grand Cherokee Limited 4WD||$3,038|
|Chevrolet Silverado LT Regular Cab 2WD||$3,036|
|GMC Sierra 3500HD SLE Extended Cab 2WD||$3,085|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$3,091|
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Above prices assume single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Illinois minimum liability limits. Discounts applied include multi-policy, multi-vehicle, claim-free, safe-driver, and homeowner. Information does not factor in specific zip code location which can affect rates significantly.
Based upon the table data, we can conclude that models like the Hyundai Elantra, Ford F-150, GMC Sierra, and Jeep Wrangler will definitely be the cheapest vehicles to insure for using your car for business. The price for an auto insurance policy will tend to be higher because of the fact that there is more liability risk for business use, but in general those particular models will have the lowest prices possible.
The chart below highlights how deductible selection can affect insurance costs when searching for cheap insurance for business use. The rates are based on a married male driver, full coverage, and no other discounts are factored in.
The data above shows that a 30-year-old driver could lower their car insurance rates by $270 a year by changing from a $100 deductible to a $500 deductible, or save $408 by switching to a $1,000 deductible. Even younger drivers, like the Age 20 chart data, could roll back prices as much as $826 or even more by choosing a larger deductible amount.
When increasing deductibles, it is important to have additional funds in a savings account to enable you to pay the extra out-of-pocket expense that deters many people from opting for higher deductibles.
Discounts on Chicago insurance rates
Car insurance companies that provide coverage for business use could also offer rate discounts that can lower rates by as much as 40% or more if you are eligible for them. A few popular companies and their offered discounts are included below.
- Progressive offers discounts for multi-policy, good student, multi-vehicle, online signing, and homeowner.
- The Hartford includes discounts for bundle, anti-theft, good student, vehicle fuel type, air bag, and driver training.
- Mercury Insurance discounts include location of vehicle, anti-theft, age of vehicle, professional/association, and ease of repair.
- GEICO may offer discounts for defensive driver, daytime running lights, five-year accident-free, anti-lock brakes, anti-theft, and driver training.
- AAA may have discounts that include education and occupation, AAA membership discount, good driver, multi-policy, and good student.
- State Farm offers discounts including multiple policy, good student, safe vehicle, passive restraint, anti-theft, and driver’s education.
The diagram below compares auto insurance rates with and without discounts applied. The rates are based on a male driver, no accidents or driving violations, Illinois state minimum liability limits, full coverage, and $1,000 deductibles.
The first bar for each age group shows the price with no discounts. The lower bar shows the rates with defensive driving course, marriage, safe-driver, claim-free, multiple policy, and accident-free discounts applied. In this example, theamount saved on car insurance for business use is 28% or $411.
Why you are probably overpaying for car insurance
Illinois car insurance rates are influenced by many factors that can increase the price you have to pay for coverage. Simply having another birthday, buying a different vehicle, or getting a reckless driving citation can trigger rate changes resulting in some rates now being affordable when they were higher priced.
In addition to those changes, insurers file new rates every year to ensure their profitability. Unexpectedly high claims may cause a rate increase, while less frequent claims can produce cheaper Chicago car insurance rates.
To illustrate this example, the data below shows rates for the cheapest car insurance in Chicago, IL for a 30-year-old female driver with a clean driving record, no accidents, and great credit. If we estimate rates based on her current rating profile, The Hartford quotes the cheapest car insurance rates in Chicago at $1,222 each year. This is $127 less than the average premium paid by Illinois drivers of $1,349. Rockford Mutual, Titan, Erie, and Cincinnati Insurance are the remainder of the cheapest Chicago, IL auto insurance companies.
In the next rate comparison, we’ll give the driver from the first set of rates some claims, poor credit, and a couple of points charged on her driving record. Because each insurer uses their own method for setting prices, comparing prices may now result in a new list of the cheapest car insurance companies in Chicago as shown below.
Travelers now has the lowest car insurance rate in Chicago with SECURA, Utica National, State Farm, and Auto-Owners now rounding out the top five. This demonstrates why it is important to shop around with many companies when trying to find the most economical insurance rates for business use. Car insurance prices are made up of many different factors and change frequently, so the most affordable company when you last compared rates may now not even be in the top five.
How to find more affordable car insurance for business use
Below you’ll find a few penny-pinching ideas that can help Illinois drivers buy cheap coverage.
- Staying accident-free helps keep rates low
- Claim-free drivers earn discounts
- Keep your driving record clean
- Buy a safer vehicle
- Higher credit scores may earn you cheaper rates
- Comparison shop at least once a year
That final tip is particularly important, as was pointed out in this write-up. Prices charged by companies go up and down frequently, so don’t be hesitant to switch to a new company if you find a cheaper price. Brand loyalty is great, but is isn’t recommended if that loyalty ends up costing money that could be spent on other things. Now is a great time to compare rates to find cheaper auto insurance for business use in Chicago.
The agents below can most likely help you decide which insurance coverage you need, as some drivers have questions and prefer to have some professional guidance when buying car insurance for using your car for business. It’s not always easy to find the cheapest auto insurance company, so getting advice from a licensed Illinois insurance agent can give you peace of mind knowing you have enough protection.
To find an auto insurance agency closest to you, click the button link following the list or click here to compare prices now.
Russ Spinelli – State Farm Insurance Agent
1525 E 53rd St #727 – Chicago, IL 60615 – (773) 955-3133
Mark Mackey – State Farm Insurance Agent
3338 W Foster Ave – Chicago, IL 60625 – (773) 604-4334
Eagle Insurance Agency
3517 N Spaulding Ave – Chicago, IL 60618 – (773) 463-7576
Talro Insurance Agency
4900 W Belmont Ave – Chicago, IL 60641 – (773) 205-8255
Linda Kuczka – State Farm Insurance Agent
954 W Webster Ave – Chicago, IL 60614 – (773) 975-9111