Compare Independent Contractor Car Insurance Rates in 2024 (Top 10 Companies)
Compare best companies for independent contractor car insurance rates like Progressive, State Farm, and Allstate stand out, offering competitive rates. These leading companies excel in providing diverse coverage options, ensuring you secure the best rates effortlessly.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
UPDATED: Feb 19, 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: Feb 19, 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
Company Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
Company Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
Pros & Cons
Company Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
Looking to compare independent contractor car insurance rates? If you’re an independent contractor or freelancer who uses a personal vehicle for work, you need to carry business car insurance. Your personal auto insurance doesn’t cover any accidents or damages while working.
Company | Rank | See Pros/Cons | Maximum Multi-Policy Discount | Maximum Low-Mileage Discount | Best For |
---|---|---|---|---|---|
#1 | Progressive | Up to 10% | Up to 30% | Online Convenience | |
#2 | State Farm | Up to 17% | Up to 30% | Many Discounts | |
#3 | Allstate | Up to 25% | Up to 30% | Add-on Coverages | |
#4 | Nationwide | Up to 20% | Up to 30% | Usage Discount | |
#5 | Farmers | Up to 20% | Up to 15% | Local Agents | |
#6 | Liberty Mutual | Up to 15% | Up to 30% | Customizable Polices | |
#7 | American Family | Up to 25% | Up to 20% | Student Savings | |
#8 | Travelers | Up to 13% | Up to 10% | Accident Forgiveness | |
#9 | Hartford | Up to 25% | Up to 20% | Deductible Reduction | |
#10 | Mercury | Up to 15% | Up to 10% | Deductible Reduction |
Keep reading to learn about commercial vs. personal car insurance. If you want to jump right into finding the most affordable auto insurance company for independent contractors, use our free quote comparison tool.
#1 – Progressive: Online Convenience
Progressive emerges as the top choice for independent contractors, offering unparalleled online convenience for policy management and claims processing.
Melanie Musson Published Insurance Expert
Pros
- Online convenience: Progressive excels in providing a seamless online experience, allowing independent contractors to easily manage their policies, file claims, and access resources through a user-friendly digital platform.
- Maximum multi-policy discount: Offering a substantial multi-policy discount of up to 10%, Progressive encourages customers to bundle their insurance needs, potentially leading to significant cost savings.
- Maximum low-mileage discount: Independent contractors who drive fewer miles can benefit from Progressive’s generous low-mileage discount of up to 30%, contributing to reduced premiums.
Cons
- Limited local presence: While Progressive offers online convenience, it may lack the local presence that some contractors prefer for face-to-face interactions or localized support.
- Discount variation: While Progressive provides excellent discounts, the actual discount percentages may vary based on factors such as location and individual circumstances.
Read more: Progressive Car Insurance Review
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
#2 – State Farm: Many Discounts
Pros
- Many discounts: State Farm stands out for its diverse range of discounts, offering up to 17% in multi-policy discounts and up to 30% for low-mileage, providing contractors with various avenues for potential savings.
- Maximum low-mileage discount: Independent contractors who drive infrequently can capitalize on State Farm’s substantial low-mileage discount, potentially reducing their insurance costs significantly.
- Established reputation: State Farm’s long-standing reputation and extensive network of agents can instill confidence in independent contractors, knowing they are dealing with a well-established and reputable insurance provider.
Cons
- Pricing variability: While State Farm offers numerous discounts, the actual pricing may vary based on individual circumstances, potentially making it challenging to predict exact costs.
- Limited online interaction: State Farm’s emphasis on a traditional agent-based model may not cater to those who prefer a more online-centric approach for managing their insurance needs.
Read more: State Farm Car Insurance Review
#3 – Allstate: Add-on Coverages
Pros
- Add-on coverages: Allstate distinguishes itself by offering a wide array of add-on coverages, allowing independent contractors to customize their policies to meet specific needs, and enhancing overall protection.
- Maximum multi-policy discount: With a substantial multi-policy discount of up to 25%, Allstate incentivizes customers to bundle their insurance, potentially resulting in significant cost savings.
- Maximum low-mileage discount: Independent contractors who drive less can benefit from Allstate’s generous low-mileage discount of up to 30%, contributing to potential premium reductions.
Cons
- Higher premiums: While Allstate provides comprehensive coverage options, its premium rates may be comparatively higher than some other providers, impacting affordability for certain contractors.
- Complexity in coverage options: The multitude of add-on coverages offered by Allstate might be overwhelming for some independent contractors, requiring careful consideration and potentially leading to confusion.
Read more: Allstate Car Insurance Review
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Do independent contractors need business car insurance?
There isn’t a specific independent contractor insurance policy, but business auto insurance will cover you if you use your personal vehicle for work.
Insurance Company | Minimum Coverage | Full Coverage |
---|---|---|
Progressive | $115 | $225 |
State Farm | $105 | $210 |
Allstate | $120 | $230 |
Nationwide | $100 | $200 |
Farmers | $110 | $220 |
Liberty Mutual | $125 | $240 |
American Family | $112 | $235 |
Travelers | $108 | $215 |
Hartford | $118 | $228 |
Mercury | $95 | $190 |
For independent contractors, the need for business car insurance depends on usage. Minimal business use may find value in Progressive’s $115/month minimum coverage. However, heavy business reliance warrants full coverage, with State Farm at an affordable $210/month and Allstate providing comprehensive protection at $230/month. The rate table offers a quick comparison, aiding contractors in making informed choices based on their specific work-related driving patterns.
The IRS defines an independent contractor as a non-employee hired by a company to work on a contract basis with clients of their choice. They may often use their own vehicles to chauffeur clients or passengers and deliver products.
Some common independent contractors who need business car insurance are:
- Rideshare and delivery drivers (read our “Delivery Driver Car Insurance: Compare Rates, Discounts, & Requirements” for more information)
- Administrative and personal assistants
- Physical and massage therapists
Don’t assume your personal policy automatically covers you if you’re an independent contractor. Most insurance companies will deny car insurance claims on accidents while performing your job if you don’t carry business coverage.
For example, if you’re a rideshare driver, you’re on the road more often than when driving for personal errands, increasing the likelihood of an accident. Consequently, independent contracts must carry additional commercial coverage on top of a personal policy.
What is the difference between business vs. personal car insurance?
Your personal auto insurance doesn’t cover business use of your car, and your policy will specifically exclude coverages for accidents or damages sustained while working.
The table below lists different insurance scenarios and whether business or personal car insurance covers you for it.
Read more:
Personal Car Insurance
Covers You When: Commercial Car Insurance
Covers You When:
Commuting to your job site. Driving around to meet clients.
Running out to grab pizza for your fellow workers. Delivering your baked goods to customers.
Throwing a box of office supplies in the back of your car. Regularly using your vehicle to transport tools and equipment to job sites.
Not sure what constitutes “business use of your car?” Answer the following questions to determine if you need business vs. personal auto insurance:
- Do you travel to remote work locations?
- Do you make deliveries?
- Do you transport products or people?
- Do you visit clients?
- Do you haul work equipment?
If you answered yes to any questions above, buy commercial car insurance to ensure you’re adequately covered. Your rates will likely increase when you add coverage, but you can save money by maintaining a good driving record and asking for discounts.
What does a business auto policy cover?
Business car insurance provides the same coverages as a personal policy, including liability, collision, and comprehensive coverage. You can also purchase the following additional coverages with your commercial policy:
- Rental reimbursement
- Uninsured motorist insurance
- Medical payments coverage
- Roadside assistance
Your state may require some of these additional coverages depending on where you live. Research your state laws before comparing business car insurance quotes so you know you’re getting the proper coverage.
How much does business car insurance cost?
Average business car insurance rates range between $100 and $200 per month, higher than average personal rates.
The main factors affecting your commercial car insurance rates are vehicle type, personal driving record, where you live, and how far you drive. For example, insurance rates on a large commercial truck or regular minivan will be higher than rates for a sedan.
You’ll also incur higher rates if you have multiple speeding tickets or reckless driving charges.
However, contractors who occasionally use their vehicles for work can reduce their rates based on mileage. The table below shows how standard car insurance rates can vary based on how far you drive per year.
Car Insurance Company Car Insurance Rates with 6,000 Annual Mileage Car Insurance Rates with 12,000 Annual Mileage
USAA $2,482.69 $2,591.91
Geico $3,162.64 $3,267.37
State Farm $3,175.98 $3,344.01
American Family $3,401.30 $3,484.88
Nationwide $3,437.33 $3,462.67
Progressive $4,030.02 $4,041.01
Farmers $4,179.32 $4,209.22
Travelers $4,399.85 $4,469.96
Allstate $4,841.71 $4,934.20
Liberty Mutual $5,995.27 $6,151.63
Some factors influencing commercial car insurance rates are out of your control. However, shopping around with multiple companies can help you find the most affordable business car insurance companies in your neighborhood.
What are the best car insurance companies for independent contractors?
The best commercial auto insurance company for you depends on where you live and how often you use your personal vehicle for business use. For example, you may be able to save money with limited delivery driver car insurance.
When comparing companies online, examine each company’s policy offerings and read customer reviews. You want to find an insurer offering the right business policies at affordable rates and a fast and friendly claims process.
J.D. Power ranks commercial car insurance companies based on product selection, price, and customer service. The top seven business car insurance companies are:
- Allstate
- State Farm
- Erie
- Farmers
- Chubb
- Travelers
- Nationwide
All top insurers are available in all 50 states, except for Nationwide and Erie. However, you may find a local company specializing in business auto at competitive rates. Compare quotes from at least three companies in your area to find the best price for your policy.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
What You Need to Know About Business Car Insurance for Independent Contractors
A personal policy doesn’t cover business use of your car. Consequently, you need to carry business coverage if you’re an independent contractor and use your personal vehicle for work.
Independent contractors who haul equipment, travel to worksites, or deliver products/passengers need a business auto policy. With this increased risk level, insurance companies require additional coverage to protect themselves and you against damages.
Business car insurance costs between $100 and $200 per month, but you can lower your rates by maintaining a good driving record and reducing your annual mileage. Independent contractors who occasionally use their vehicles for work will have the lowest commercial car insurance rates.
Navigating Insurance Solutions: Case Studies in Tailored Coverage for Independent Contractors
Case Study One: Online Convenience Wins with Progressive
Maria, an independent contractor, values the convenience of managing her insurance needs online. She seeks a provider that offers an intuitive digital platform for policy management and claims processing.
Progressive emerges as the ideal choice for Maria due to its strong focus on online convenience. The user-friendly digital platform allows her to effortlessly navigate through policy details, file claims, and access resources, streamlining her insurance management.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Case Study Two: Multi-Policy Savings and Reputation Assurance with State Farm
John, an independent contractor, prioritizes savings through bundling and seeks the assurance of a well-established insurance provider with a strong reputation.
State Farm becomes the preferred choice for John due to its diverse range of discounts, including a substantial multi-policy discount of up to 17%. The insurer’s long-standing reputation and extensive network of agents instill confidence in John.
Case Study Three: Customized Policies and Maximum Savings with Liberty Mutual
Emily, an independent contractor, requires flexibility in tailoring her insurance coverage to specific needs. She also aims to maximize savings through discounts.
Liberty Mutual stands out for Emily with its emphasis on customizable policies. The insurer’s focus on tailoring coverage to individual preferences, coupled with a generous low-mileage discount, aligns with Emily’s requirements for customization and savings.
Frequently Asked Questions
Do independent contractors need a specific insurance policy for their work vehicles?
Yes, independent contractors should consider business car insurance for their work vehicles. While personal auto insurance covers personal use, it often excludes coverage for accidents or damages that occur while working. Business car insurance provides the necessary protection for work-related activities.
What factors should independent contractors consider when choosing an insurance provider?
Independent contractors should consider factors such as online convenience, available discounts (multi-policy, low-mileage), coverage options, and whether the provider offers customizable policies. Additionally, personal preferences, such as the desire for local agents or an emphasis on digital tools, can influence the decision-making process.
Why is it important for independent contractors to bundle policies?
Bundling policies, combining multiple insurance policies with the same provider, often leads to substantial discounts known as multi-policy discounts. This can result in significant cost savings for independent contractors, making it a financially advantageous choice.
How does deductible reduction work in insurance policies for independent contractors?
Deductible reduction is a feature that allows independent contractors to lower the out-of-pocket expenses they would incur in the event of a claim. Insurance providers offering deductible reduction typically provide options for reducing the deductible amount, offering financial relief during claims.
Are there specific discounts for independent contractor students?
Yes, some insurance providers offer student savings as a discount for independent contractors who are students themselves or have student-aged drivers in their household. Providers like American Family may provide additional discounts tailored to the unique circumstances of student contractors.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
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.