Compare Business Owner Car Insurance Rates [2024]
Car insurance discounts for business owners can lower the typically high rates. You can save money on car insurance by driving a company vehicle and taking advantage of tax write-offs.
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Kristen Gryglik
Licensed Insurance Agent
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...
Licensed Insurance Agent
UPDATED: May 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: May 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Business owners have the opportunity to take advantage of tax write-offs
- You can use tax write-offs if you drive your personal car for business, have a work cell phone, and more
- You should always consult an accountant or tax specialist to ensure you make no mistake when filing your taxes
Tax Write-Offs
As a business owner, tax write-offs are a big incentive. However, if you do not do them the right way, they can become red flags that auditors look for.It becomes even trickier when your business is a home-based business and your office is located on your personal property.Following the proper tax laws is important in order to avoid fees and fines.
The first tax write off that most business owners take advantage of is travel expenses.
This can be air travel or travel on the road. If you travel by air, the cost of the airplane ticket and all associated costs can be written off.If you travel by road, all costs for the rental car can be written off. If you drive your own car, keep track of the mileage and you can be reimbursed a certain amount per mile.This amount is set each year by the federal government.Another write-off for business owners is a cell phone. The only catch is that you have to show that you use it more for business than for personal use.You do this by keeping printouts of your bill and highlighting your business calls.If there are a few months where personal call volume is higher than business call volume, that isn’t a problem, but if it becomes consistent, you can no longer deduct your cell phone as a business expense.A home office is also a tax write-off if you have a space that is dedicated solely to your business.It cannot be a home computer room that you use for your business.You can also take the square footage of your home and divide the gas, electric, and water bill by the square foot and write off the portion that goes into the home office.
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The Reason Behind The Rates
The reason that car insurance is in the high range for business owners is because insurance rates are set by industry research.Insurance industry research shows that business owners spend a lot of time on the road, especially during the start-up stage of business.Time on the road is spent running errands, going to appointments, networking, and marketing.The more time spent on the road means the more exposure to possible accidents.
Even though the driving may be for business purposes, if you are driving your own vehicle, you are covered under your personal insurance.
It is important to note that if you are driving a company vehicle, you are covered under your commercial auto insurance policy.Industry research also shows that business owners tend to work long hours and are driving early in the morning and late at night. These driving times are when more accidents happen.Statistics also show that drivers who are tired are less alert and are prone to dozing off at the wheel contributing to the possibility of an accident.
Saving Money
If you want to start and run a successful business, you need to be smart with how you spend your money. And as a business owner, you can save money on car insurance by driving a company vehicle more than your personal vehicle.
You can also save money by making sure you have considered all the tax write-offs possible.
Hiring an accountant or tax specialist to help you is worth the cost.They will be more familiar with tax laws and can make sure you are doing things legally and getting as many benefits as possible.Business owners can also save money by waiting as long as possible to increase the employee base of the business. The longer you can work at the business full-time, the better.Once you have a strong customer base, you can step back from the day-to-day work and focus on increasing business or expanding.Compare car insurance rates from top companies now by entering your zip code in the FREE box below!
Frequently Asked Questions
What tax write-offs can help business owners lower car insurance rates?
Business owners can potentially lower car insurance rates by utilizing tax write-offs for travel expenses, cell phone costs (if primarily used for business), and expenses related to a dedicated home office.
Why are car insurance rates higher for business owners?
Car insurance rates tend to be higher for business owners due to their increased time on the road and driving during higher-risk hours, based on industry research.
How can business owners save money on car insurance?
Business owners can save money on car insurance by driving company vehicles more frequently, taking advantage of eligible tax write-offs, comparing quotes from multiple insurance companies, maintaining a good driving record, and considering safety measures for their vehicles.
Are there other ways for business owners to reduce car insurance costs?
In addition to the mentioned strategies, business owners can consider higher deductibles, bundling insurance policies, implementing vehicle tracking or security systems, and exploring available discounts specific to business owners.
Should business owners consult with an insurance professional for personalized advice?
Yes, it is recommended for business owners to consult with a licensed insurance professional or agent who can provide personalized advice tailored to their specific circumstances and insurance needs.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
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Kristen Gryglik
Licensed Insurance Agent
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.