For your employer’s vehicle, one of the more important factors that are looked at to determine the cost of insurance is where your residence is. Regions with more people or even just more weather-related claims likely pay more, whereas less populated areas get the luxury of paying less.
The information below lists the highest-priced places in California for a company car to purchase car insurance in. Bakersfield is ranked #19 with a yearly premium of $1,381 on average, which is approximately $115 each month.
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Rate information is approximated as the specific geographic location can lower or raise prices noticeably.
Finding out which companies have the cheapest insurance rates for a company car involves a bit more work than just quoting one company’s rates.
Each company has a different process to set policy rates, so we will examine the most competitive insurance companies in California. We do need to point out that California insurance rates are impacted by many things that can increase the cost of coverage. Turning one year older, having a teenage driver, or getting a ticket for running a stop sign may cause policy rate changes that can cause some rates to be cheaper than competitors.
Compare Cheap Insurance Quotes in California
Wawanesa normally has some of the most affordable car insurance rates in Bakersfield at around $1,146 a year. This is $505 less than the average rate paid by California drivers of $1,651. USAA, Century National, CSAA, and Nationwide are also some of the best Bakersfield, CA car insurance companies.
In the above rates, if you are insured with CSAA and switched to Wawanesa, you might realize a yearly savings of approximately $40. Insureds with Nationwide may save as much as $67 a year, and 21st Century customers might realize rate reductions of up to $192 a year.
To compare your rates to other California insurance companies, click here to get a free quote or visit several of the following companies.
These premium estimates are averaged for all types of drivers and the different vehicles they drive and are not factoring in an exact zip code location for a company car. So the auto insurance company that is best for you may not even be in the top 24 companies shown above. That affirms the importance of why you need to quote rates from as many companies as possible using your own personalized driver profile and vehicle information.
How to get discounts on Bakersfield car insurance
Insurers that provide policies for a company car may also provide price discounts that can lower rates by 30% or more if you qualify for them. A few of the larger companies and some of the discounts are detailed below.
- State Farm discounts include driver’s education, student away at school, Steer Clear safe driver discount, multiple policy, anti-theft, passive restraint, and multiple autos.
- Nationwide may include discounts for Farm Bureau membership, easy pay, defensive driving, good student, multi-policy, and anti-theft.
- GEICO policyholders can earn discounts including military active duty, defensive driver, daytime running lights, air bags, anti-lock brakes, and driver training.
- AAA may have discounts that include anti-theft, AAA membership discount, good student, multi-policy, and education and occupation.
- 21st Century has savings for air bags, anti-lock brakes, defensive driver, homeowners, automatic seat belts, good student, and 55 and older.
- The Hartford includes discounts for defensive driver, vehicle fuel type, bundle, air bag, and good student.
The information below shows the difference between insurance prices with and without discounts applied to the policy rates. The data is based on a male driver, no violations or claims, California state minimum liability limits, full coverage, and $100 deductibles.
The first bar for each age group shows premium with no discounts. The lower bar shows the rates with homeowner, passive restraint, anti-theft, claim-free, marriage, and accident-free discounts applied. In this example, theaverage yearly reduction on insurance for a company car is 28% or $698.
Driving violations and accidents
The obvious way to receive good insurance premiums in California for your employer’s vehicle is to drive attentively and avoid traffic citations and accidents. The example below demonstrates how traffic citations and accidents can drive up annual premium costs for different age groups of insureds. The premiums assume a married male driver, full coverage, $100 deductibles, and no discounts are applied.
In the example above, the average cost of a car insurance policy in California per year with no accidents and a clean driving record is $2,157. Add in one speeding ticket and the average cost jumps to $2,476, an increase of $319 each year. Now add one accident along with the one speeding ticket and the annual cost of insurance for a company car jumps again to an average of $3,374. That’s an increase of $1,217, or $101 per month, just for not being attentive to the road!
Full coverage rates compared to liability only
Reducing premiums for insurance is probably important to the majority of vehicle owners, and a great way to find cheaper insurance for a company car is to not insure for full coverage. The example below shows the difference between yearly insurance costs with full coverage and liability only. The data is based on no violations or claims, $100 deductibles, single marital status, and no additional discounts are factored in.
As an average for all age groups, full coverage on your policy costs an additional $3,385 per year over and above liability coverage. That is a significant amount which raises the question if buying full coverage is a good investment. There is no clear-cut formula of when to stop paying for physical damage coverage on your policy, but there is a general guideline. If the yearly cost for physical damage coverage is about 10% or more of replacement cost minus your deductible, then you may need to consider dropping full coverage.
For example, let’s say your vehicle’s replacement cost is $4,000 and you have $1,000 full coverage deductibles. If your vehicle is destroyed, you would only receive $3,000 after you pay the deductible. If you are paying over $300 a year for physical damage coverage, then you might consider buying liability only.
There are some situations where only buying liability is not advised. If you haven’t satisfied your loan, you have to keep full coverage as part of the loan conditions. Also, if you can’t afford to buy a different vehicle if your current one is totaled, you should keep full coverage.