What Insurance is Cheapest for a Company Car in New Orleans?

The words “low-priced” and “insurance” really shouldn’t be used in the same sentence, specifically when shopping around for the best car insurance rates for a company car. To help control this cost, let’s go over some of the factors that determine insurance prices, and find out if you can lower the price of the next policy you buy.

For your employer’s vehicle, one of the largest criteria that aid in calculating insurance cost is where you keep your vehicle. Regions with more people or even just more weather-related claims likely pay more, whereas less populated areas benefit from lower prices.

The next table shows the priciest cities in Louisiana for a company car to purchase car insurance in. New Orleans comes in at #1 with an annual rate of $2,914 for the average policy, which is approximately $243 monthly.

How much does car insurance cost in New Orleans, LA?
Rank City Annual Premium
1 New Orleans $2,914
2 Marrero $2,569
3 Harvey $2,487
4 Terrytown $2,480
5 Metairie $2,254
6 Kenner $2,247
7 Central $2,223
8 Baton Rouge $2,209
9 Shenandoah $2,204
10 Prairieville $2,169
11 Alexandria $2,117
12 Hammond $2,107
13 Lafayette $1,995
14 Laplace $1,991
15 Slidell $1,977
16 Sulphur $1,974
17 Lake Charles $1,974
18 Monroe $1,970
19 Shreveport $1,894
20 New Iberia $1,852
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Rate quotes are comparative as the garaging address in New Orleans can modify coverage rates substantially.

Establishing which company has the best insurance rates for a company car involves more time than just getting one or two price quotes. Each insurance company uses a slightly different approach to set premium rates, so we will examine the insurance companies with the most affordable rates in New Orleans.

Cheapest Insurance Rates in Louisiana

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Cheapest insurance companies in Louisiana
Rank Company Cost Per Year
1 USAA $1,626
2 MetLife $1,836
3 GEICO $1,945
4 Progressive $1,946
5 Safeway $2,154
6 Southern Farm Bureau $2,181
7 California Casualty $2,246
8 State Farm $2,359
9 Safe Auto $2,627
10 Allstate $3,065
11 Encompass $3,138
12 Liberty Mutual $3,608
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USAA quotes some of the most affordable car insurance rates in New Orleans at around $1,626 per year. MetLife, GEICO, Progressive, and Safeway would also make the list of some of the more affordable New Orleans, LA insurance companies.

As depicted above, if you are currently insured with MetLife and switched to USAA, you might realize savings of approximately $210. Policyholders with GEICO could save as much as $319 a year, and Progressive customers might lower prices by up to $320 a year.

These premiums are averages for all types of drivers and the different vehicles they drive and and are not calculated with a vehicle location for a company car. So the insurer that is best for you may not even be in the top 12 companies in the list above. That’s why you need to compare as many prices as possible using your own driver and vehicle profiles.

The vehicle model that is being insured is one of the largest factors that determines if you can find economical car insurance for a company car. Vehicles with limited top-end speed, excellent safety ratings, or a positive history of liability claims will cost much less to insure than adrenaline junky models. The next list estimates car insurance costs for a handful of the cheaper vehicles to insure in Louisiana.

Cheapest Vehicles to Insure in New Orleans, LA
Make and Model Estimated Cost for Full Coverage
Honda Accord EX-L 4-Dr Sedan $2,413
Ford F-150 STX Super Cab 2WD $2,450
Ford Edge SEL 2WD $2,585
Toyota Tacoma 2WD $2,595
Jeep Wrangler Unlimited Sport 2WD 4-Dr $2,680
Ford Escape XLS 4WD $2,731
Honda CR-V LX 2WD $2,738
GMC Sierra SLE Extended Cab 4WD $2,826
Toyota Prius $2,835
GMC Sierra 3500HD SLT Extended Cab 2WD $2,877
Chevrolet Impala LS $2,965
Kia Optima SX $3,016
Toyota RAV4 2WD $3,022
Dodge Grand Caravan SE $3,060
Chevrolet Malibu LT $3,077
Ford Explorer Eddie Bauer AWD $3,083
Chevrolet Silverado 2500HD LT Crew Cab 2WD $3,151
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Table data assumes single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Louisiana minimum liability limits. Discounts applied include claim-free, safe-driver, homeowner, multi-vehicle, and multi-policy. Estimates do not factor in New Orleans, LA location which can change auto insurance rates significantly.

By looking at the data, vehicles like the Honda Accord, Ford F-150, Ford Edge, and Toyota Tacoma will be a few of the more affordable vehicles to insure for your employer’s vehicle.

The illustration below demonstrates how deductible levels can influence premium costs when trying to find cheap insurance for a company car. The rates are based on a married male driver, full coverage, and no additional discounts are factored in.

In the chart above, a 40-year-old driver could pocket $388 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $586 by changing to a $1,000 deductible. Even younger insureds, like the 20-year-old example, can cut $1,294 annually by choosing a higher deductible. When increasing deductibles, it will now be necessary to have enough in a savings account to pay the extra out-of-pocket expense, which deters some people from using high deductibles.

Discount New Orleans car insurance

Save on insurance for your employer's vehicle in New OrleansInsurance companies that provide coverage for a company car may also provide rate discounts that could potentially reduce rates by as much as 35% if you meet specific criteria. A list of companies and the discounts they provide can be read below.

The chart below visualizes the comparison of insurance premiums with and without discounts applied to the rates. The data assumes a male driver, no violations or accidents, Louisiana state minimum liability limits, comprehensive and collision coverage, and $500 deductibles. The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with passive restraint, claim-free, anti-theft, accident-free, marriage, and vehicle safety discounts applied. When taking advantage of discounts, the average amount saved each year on insurance for a company car is 28% or $825.

Full coverage rates compared to liability only

Paying less for insurance is the goal of the majority of people, and one good way to buy cheaper insurance for a company car is to not insure for full coverage. The information below illustrates the difference between car insurance rates with full coverage compared to only the Louisiana minimum liability coverage. The price estimates are based on no accidents or driving violations, $100 deductibles, drivers are single, and no discounts are applied to the premium.

Averaged for all ages 20 through 70, physical damage coverage costs $3,620 per year more than just buying liability only. Many of you may wonder if buying full coverage is worth the expense. There isn’t a steadfast formula of when to eliminate full coverage on your policy, but there is a general guideline. If the yearly cost for physical damage coverage is 10% or more of the vehicle’s replacement cost less your deductible, then you might want to think about dropping full coverage.

For example, let’s say your vehicle’s settlement value is $9,000 and you have $1,000 policy deductibles. If your vehicle is severely damaged, the most your company will settle for is $8,000 after paying the physical damage deductible. If you are paying in excess of $800 a year for comprehensive and collision coverage, the it may be a good time to stop paying for full coverage.

There are some cases where dropping full coverage is not a good idea. If you still have a loan on your vehicle, you have to carry full coverage to satisfy the loan requirements. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is totaled, you should not eliminate full coverage.