For using your car for business, one of the largest components that help determine the cost of insurance is where you call home. Areas with more people or even just a higher incidence of claims tend to pay more, whereas areas with lower vehicle theft rates and fewer weather claims have the benefit of cheaper car insurance.
The illustration below ranks the most expensive cities in Hawaii for business use to purchase a policy in. Honolulu is ranked at #4 with an annual premium of $1,047 for car insurance, which is about $87 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Hilo | $1,098 |
| 2 | Kailua | $1,084 |
| 3 | Makakilo | $1,057 |
| 4 | Honolulu | $1,047 |
| 5 | Mililani Mauka | $1,047 |
| 6 | Pearl City | $1,047 |
| 7 | Waianae | $1,047 |
| 8 | Ewa Beach | $1,046 |
| 9 | Nanakuli | $1,036 |
| 10 | Waimalu | $1,036 |
| 11 | Kihei | $1,026 |
| 12 | Wahiawa | $1,016 |
| 13 | Schofield Barracks | $1,016 |
| 14 | Halawa | $1,016 |
| 15 | Waipahu | $1,015 |
| 16 | Ewa Gentry | $1,015 |
| 17 | Royal Kunia | $1,015 |
| 18 | Mililani Town | $1,005 |
| 19 | Kaneohe | $1,005 |
| 20 | Kapolei | $1,005 |
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Rates are comparative as the specific garaging location can raise or lower price quotes considerably.
The type of vehicle requiring insurance is one of the largest considerations when quoting low-cost auto insurance for business use. Vehicles with reasonable performance levels, advanced safety features, or a positive history of liability claims will cost significantly less to insure than high performance models.
The next table estimates car insurance premiums for some of the most affordable automobiles to insure in Hawaii.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape Limited 2WD | $879 |
| Ford F-150 XL Super Cab 2WD | $944 |
| Honda Odyssey LX | $950 |
| Dodge Grand Caravan SE | $963 |
| Ford Edge Limited 2WD | $997 |
| Chevrolet Impala LT | $1,015 |
| Toyota RAV4 2WD | $1,020 |
| Volkswagen Jetta S 4-Dr Sedan | $1,015 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $1,032 |
| Ford Explorer Eddie Bauer AWD | $1,034 |
| Toyota Camry SE | $1,068 |
| Honda CR-V EX-L 2WD | $1,076 |
| Kia Optima LX | $1,087 |
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Premium data assumes single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Hawaii minimum liability limits. Discounts applied include claim-free, multi-policy, homeowner, multi-vehicle, and safe-driver. Price information does not factor in zip code location which can modify price quotes considerably.
Based on these rates, we can infer that vehicles like the Ford Escape, Ford F-150, and Honda Odyssey are most likely to be a few of the cheapest vehicles to insure for using your car for business. Auto insurance rates will be higher anyway just because there is more inherent risk for business use, but overall those specific models will most likely have the lowest insurance rates compared to other types of vehicles.
Deciphering which companies quote the cheapest auto insurance rates for business use requires a bit more effort in order to find a policy that fits your budget. Every insurance provider uses their own method for determining rates, so let’s take a look at the auto insurance companies with the overall best prices in Honolulu, HI.
It’s important that readers know that Hawaii auto insurance rates are based on many factors that control the price you pay for coverage. Turning one year older, moving to a new city, or getting a couple of tickets may cause policy rate changes that may make certain companies more affordable than competitors.
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USAA normally has some of the lowest car insurance rates in Honolulu at around $954 annually. This is $642 less than the average premium paid by Hawaii drivers of $1,596. State Farm, GEICO, Liberty Mutual, and Progressive would also be considered some of the cheapest Honolulu, HI car insurance companies.
As depicted above, if you are a policyholder with Liberty Mutual and switched to USAA, you may see an annual premium reduction of around $467. Policyholders with Progressive might save as much as $670 a year, and Allstate policyholders might see rate reductions of $952 a year.
It’s important to note that these rates are averaged for all types of insureds and vehicles and do not factor in a vehicle location for business use. So the company that can offer you the best rate may not even be in the list above. That affirms the importance of why you need to get car insurance quotes using your own personalized driver profile and vehicle information.
How violations and accidents impact rates
A great way to maintain affordable auto insurance premiums in Hawaii for using your car for business is to be a safe driver and not receive tickets or have accidents. The chart below shows how traffic citations and at-fault fender-benders can influence car insurance rates for different age categories. The data assumes a married female driver, comprehensive and collision coverage, $1,000 deductibles, and no other discounts are factored in.
The chart shows that the average cost of a car insurance policy in Hawaii per year with no accidents or violations is $860. Factor in two speeding tickets and the average cost rises to $1,211, an increase of $351 each year. Now include one accident along with the two speeding tickets and the yearly cost of auto insurance for business use increases to an average of $1,566. That’s an increase of $706, or $59 per month, just for not paying attention while driving!
Get discount Honolulu auto insurance rates
Auto insurance companies that offer quotes for business use may additionally offer premium discounts that can lower rates by as much as 40% or more if you meet the requirements. A few popular companies and the discounts they provide can be found below.
- GEICO offers premium reductions for multi-policy, military active duty, anti-lock brakes, emergency military deployment, good student, driver training, and seat belt use.
- SAFECO may include discounts for safe driver, teen safe driver, multi-car, homeowner, teen safety rewards, and accident prevention training.
- State Farm policyholders can earn discounts including Steer Clear safe driver discount, Drive Safe & Save, defensive driving training, driver’s education, multiple autos, accident-free, and student away at school.
- MetLife offers discounts including multi-policy, good student, accident-free, defensive driver, and good driver.
- 21st Century has savings for defensive driver, good student, automatic seat belts, driver training, anti-lock brakes, air bags, and theft prevention.
- Progressive offers discounts for online quote discount, continuous coverage, multi-vehicle, good student, online signing, multi-policy, and homeowner.
The diagram below compares car insurance costs with and without discounts being applied to the rates. The premiums are based on a male driver, no violations or accidents, Hawaii state minimum liability limits, comprehensive and collision coverage, and $100 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second shows the rates with vehicle safety, defensive driving course, multiple vehicle, safe-driver, marriage, and multiple policy discounts applied. With discounts applied, the average amount saved each year on auto insurance for business use is 28% or $565.
Last year’s bargain might be this year’s rip off
Honolulu auto insurance rates are determined by lots of factors that may substantially change the policy premium. Simply turning a year older, getting married, or getting a few speeding tickets can produce rate changes that can make some companies more affordable than others. Also, insurers file new rates every year or even multiple times each year to adjust for unexpected claims or profits. An unexpected high level of claims can cause high rates, while a lower level of claims may cause cheaper Honolulu car insurance rates.
To help illustrate this point, the bar chart below shows the company with the cheapest car insurance in Honolulu, HI for a 35-year-old male driver with a clear driving record, no claims, and a decent credit rating. If we estimate rates based on his current situation, USAA quotes the cheapest car insurance rates in Honolulu at $974 each year. This is $622 less than the average price paid by Hawaii drivers of $1,596. State Farm, GEICO, Liberty Mutual, and Progressive also make the list of the best Honolulu, HI auto insurance companies.
Now we will give the driver in the first chart an accident claim, poor credit, and an imperfect driving record. Since every insurance provider has a unique formula to set premium rates, comparing prices most likely will result in a new list of the cheapest Honolulu car insurance companies as shown below.
State Farm now has the best auto insurance rate in Honolulu, HI with USAA, GEICO, First of Hawaii, and Liberty Mutual also being competitive. This example shows why Hawaii drivers need to shop around to get affordable car insurance quotes for business use. Rates are influenced by many things and change frequently, so the most economical option two years ago may now be one of the higher cost companies.
Tips to find the cheapest auto insurance for business use
The list below summarizes some thrifty ideas that can help Hawaii drivers find low-cost coverage.
- Full coverage may not be needed on older vehicles
- Improve your credit score
- Raise deductibles
- Pay for small claims rather than turning them in to your insurance company
- Lower rates by purchasing a safer vehicle
- Buy your homeowners policy from the same company as your auto insurance
- Compare price quotes at least once a year
The last tip in the list is notably crucial, as was stressed in the prior article. Car insurance prices can change in a short period of time, so don’t be afraid to buy a policy from a new company if you can find a cheaper rate.
Having brand loyalty is commendable, but it’s not a great idea if that faithfulness ends up costing you big bucks every year. If you have a few minutes, now is a great time to compare rates and find cheaper car insurance for business use in Honolulu.