How Much are Auto Insurance Rates for a Company Car in Lincoln?

The words “economical” and “auto insurance” really shouldn’t be used in the same sentence, especially when you are searching for the lowest insurance prices for a company car. In an attempt to save some money, let’s go over a few of the factors the can have a considerable influence on insurance rates, and find out if we can help you take a little off the next policy you buy.

For your employer’s vehicle, one of the more important criteria that determine car insurance rates is your address in Lincoln. Areas with more people or even just a higher incidence of claims are more likely to pay higher prices, whereas areas with lower vehicle theft rates and fewer weather claims profit from lower rates.

The following table lists the most expensive places in Nebraska for a company car to buy an auto insurance policy in. Lincoln ranks #24 with an annual cost of $1,073 for coverage, which is around $89 per month.

Premium amounts are comparative as the specific geographic location can modify rates considerably.

The vehicle model you are trying to insure is probably the most important factor when trying to find low-cost insurance for a company car. Vehicles with lots of speed or power, a lack of safety features, or a track record of large liability claims will cost much more to insure than more economical and safe models.

The next list shows insurance costs for the cheaper vehicles to buy insurance for.

Data assumes single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Nebraska minimum liability limits. Discounts applied include safe-driver, claim-free, homeowner, multi-policy, and multi-vehicle. Rate quotes do not factor in specific Lincoln, NE garaging location which can modify coverage prices substantially.

Based on these rates, makes and models like the Ford Escape, Honda CR-V, and Volkswagen Jetta are likely to be some of the most affordable vehicles to insure for your employer’s vehicle.

Establishing which companies quote the cheapest insurance rates for a company car calls for more work in order to find the lowest price quote. Every car insurance company has their own guidelines for determining prices, so let’s take a look at the insurance companies that tend to have lower prices in Nebraska.

It’s a good idea to know that Lincoln, NE insurance rates are impacted by many things that will increase or decrease the price of your policy. Improving your credit score, getting divorced, or getting a ticket for careless driving can trigger changes in premium resulting in some companies being cheaper in comparison to the competition.

Best Insurance Companies in Nebraska

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Safeco may offer some of the most affordable car insurance rates in Lincoln at around $812 per year. The Hartford, Auto-Owners, Allied, and Farm Bureau Mutual would also be considered some of the cheapest Lincoln, NE car insurance companies.

As shown in the rates above, if you are a customer of Allied and switched to The Hartford, you may realize an annual premium reduction of upwards of $84. Drivers with Farm Bureau Mutual might save as much as $115 a year, and Farmers Mutual of Nebraska insureds might cut rates by $124 a year.

It’s important to note that these premiums are averaged for all drivers and vehicles and do not factor in a specific zip code for a company car. So the auto insurance company that can offer you the lowest price may not even be in the list above. That point stresses why you need to get quotes using your own driver and vehicle profiles.

Insuring your vehicle with the highest-rated insurance company can be challenging considering how many different companies sell coverage in Lincoln. The ranking information displayed below could help you analyze which car insurance companies you want to consider when shopping car insurance rates for a company car. These ratings only include large insurance companies, so smaller companies will not be included in these rankings.

Top 10 Large Auto Insurance Providers in Lincoln Ranked by Value

1. USAA
2. GEICO
3. AAA Insurance
4. Liberty Mutual
5. State Farm
6. Allstate
7. Safeco Insurance
8. Travelers
9. 21st Century
10. Nationwide

How to get discounts on Lincoln auto insurance rates

Insurance companies that offer coverage for a company car may also provide discounts that could reduce prices by 30% or more if you meet specific criteria. Large insurance companies and their offered discounts are detailed below.

• American Family discounts include good student, multi-vehicle, defensive driver, mySafetyValet, Steer into Savings, good driver, and early bird.
• State Farm offers discounts for multiple policy, accident-free, good driver, safe vehicle, and Drive Safe & Save.
• 21st Century has discounts for teen driver, air bags, theft prevention, good student, student driver, automatic seat belts, and early bird.
• Travelers may offer discounts for good student, new car, driver training, student away at school, home ownership, and multi-policy.
• GEICO may include discounts for five-year accident-free, multi-policy, driver training, multi-vehicle, and defensive driver.

The chart below shows the comparison of premium costs with and without discounts applied. The rates are based on a female driver, no violations or accidents, Nebraska state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles. The first bar for each age group shows the average rate with no discounts. The second shows the rates with passive restraint, homeowner, claim-free, multiple policy, defensive driving course, and accident-free discounts applied. With discounts applied, the average savings per year on insurance for a company car is 28% or $360.

Does it make sense to buy full coverage?

Saving money on insurance should be important to most people, and one common way to save on the cost of insurance for a company car is to buy liability only. The chart below visualizes the comparison of auto insurance costs with full coverage compared to only the Nebraska minimum liability coverage. The premiums assume no claims, a clean driving record, $250 deductibles, single status, and no discounts are applied.

As an average, comp and collision coverage costs an extra $2,107 per year more than just buying liability only. That touches on the question if buying full coverage is worth the money. There is no exact rule for excluding full coverage, but there is a general convention. If the annual cost of having full coverage is 10% or more of the settlement you would receive from your company, then you may want to consider only buying liability coverage.

There are a few situations where buying only liability insurance is not a good idea. If you still owe a portion of the original loan, you have to carry full coverage to satisfy the loan requirements. Also, if you can’t afford to buy a different vehicle if your current one is totaled, you should not remove full coverage.

Here’s why price comparisons are so important

Nebraska insurance rates are influenced by many factors which can significantly increase or decrease the price you have to pay for coverage. Simply improving your credit, buying higher coverage limits, or having an at-fault accident can trigger rate changes that may make certain companies cheaper than competitors.

And not only may your rating factors change, but companies change prices as often as every three months in order to remain profitable. A period of higher than normal claims may cause higher rates, while lower claim levels may cause cheaper Lincoln car insurance rates.

The bar chart below shows rates for the cheapest car insurance in Lincoln, NE for a 35-year-old female driver with no accidents, a clean driving record, and good credit. Based on her personal profile, Safeco has the cheapest car insurance rates in Lincoln at $804 per year. This is $512 less than the average rate paid by Nebraska drivers of $1,316. The Hartford, Auto-Owners, Allied, and Farmers Mutual of Nebraska also make the list of the cheapest Lincoln, NE auto insurance companies.

Now we will pretend the driver from the above example a couple of claims, less-than-perfect credit, and an imperfect driving record. Because each company has their own process for setting prices, analyzing rate quotes will most likely result in a significantly different list of affordable Lincoln car insurance companies as shown below.

Nationwide now has the best car insurance rate in Lincoln, NE with State Farm, General Casualty, American National, and USAA now being in the top five. This shows why it is critical to compare as many rates as possible to get the lowest auto insurance rates for a company car. Auto insurance prices can be altered by many things and can change substantially, so the cheapest company two years ago may now be costing you a lot of money.