Cheap Auto Insurance for Self Employed Workers

There are so many considerations to keep in mind when you are self-employed. One that many people overlook initially is the impact your employment status will have on your auto insurance. As a self-employed person, you can get cheap rates for your car insurance, provided you are willing to shop around and ask questions. Here are some things to keep in mind when shopping for your auto insurance as a self-employed person.

Tools and Gear

When you’re the boss, you get to set your own hours and you only answer to yourself and your customers. With this freedom comes a great deal of responsibility. For one thing, if there are expensive tools used in your trade you will need to buy them and transport them. It’s common for the insurance companies to bump rates slightly to allow for the cost of these tools should they be involved in a claim.


For better or worse, companies are viewed as having deep pockets. Putting your company name on your car and then driving around in it provides an excellent amount of free advertising. But if you are in an accident with that car, it can also result in a frivolous lawsuit. You will want to protect yourself from so-called ambulance chasers and people looking for a quick buck by carrying higher coverage for liability. Your insurance company may also want to protect themselves by charging you a little more for that coverage.


Be honest with your company when reporting how many miles you drive. If you tell them the car is only driven 1,000 miles a year and they prove that is has been driven 20,000 miles a year, then they can deny your claim. Calculate the miles that it will be driven and report that number honestly. Expect your premium to rise slightly if you drive a lot of miles, but the small price is worth the peace of mind that comes with knowing you are covered.

This can also work in your favor if you work strictly from home and do not have to drive for the business. In this case, you might see the premiums drop to a more attractive level.

Commercial Insurance

If you use your car primarily for business and will be visiting accounts and moving company goods in it, then you might want to consider commercial insurance. Designed for businesses and the extra liability that they face, this coverage will provide better protection. It’s also a business expense and can provide you with another tax deduction at the end of the year.

Factors Affecting Premiums

Ultimately, the amount you pay for premiums will depend on several factors. Your credit report may be taken into account in some states, and the company will certainly look at your driving record and claims history. Other factors include your age and family status, as well as the type of car you are driving.

Finding the Lowest Rates

Getting the best rates for your needs involves several steps. You must first consider your required coverage levels. If you will be driving for the company then you must have higher liability levels. Add comprehensive if you want theft of materials or damage to the car covered should something happen while you are out and about. Make a list of what you want and have it with you when you start shopping around.

Next, you should write down the mileage you expect to drive each year. You should also make a list of your car’s safety features and any anti-theft features that it has. These can help you get a discount. If you’ve taken a safe driver’s course you should have that information handy, along with your driver’s license number. You should also consider the deductibles you are interested in. Higher deductibles lower premiums and can help offset the overall cost.

The next step is to visit comparison websites where you can enter your information and receive a list of quotes from different companies. Choose the three or four quotes that are the most appealing and then move on to the next step.

Research is important when you are choosing a cheap insurance company. You want low rates but you also want a company that will stand behind you and actually pay claims. Try to choose companies that are nationally recognized like Geico, Allstate or Farmer’s. Check out the ratings on the companies you like from agencies like JD Power, A.M. Best and S&P. Review customer information online to see who has the highest ratings, and then make a decision. You may wind up paying a little more on the premiums, but you will enjoy the peace of mind that comes with knowing you are truly protected by a solid company.

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