Key Takeaways
The most popular types of car insurance are for pleasure driving and commuting. The cost of insurance for a car used for fun is usually $21 less a year than insurance for a car used for work.
We'll talk about the ins and outs of these plans and look at some popular car insurance rates.
A normal American driver has insurance for their commuter car. The car is their main way of getting to and from work or school, so they use it regularly. A pleasure car is only driven on the weekends or very rarely. There are a few situations where pleasure use car insurance is useful: if a driver only drives their classic or sports car for fun or if they take the bus or bike to work and only need their car for short, necessary trips.
Find out how much insurance costs for a normal vehicle use.
| Use of Vehicle | Avg. Annual Premium |
|---|---|
| Farm | $1671 |
| Pleasure | $1770 |
| Work - One-way commute (less than 10 miles) | $1788 |
| Work - One-way commute (10-15 miles) | $1797 |
| Work - One-way commute (15+ miles) | $1809 |
| Business | $2022 |
The average cost of auto insurance for a pleasure-use car is $1437 per year, while the average cost for passenger coverage is $1448 per year. This difference only matters once you compare different auto insurance companies.
On average, a commuter policy costs a little more than pleasure-use insurance. What you pay for car insurance, on the other hand, will depend on you, your car, and your insurance company. Check out the table below to see how your rates can change depending on your car insurance company and how you use your car.
| Use of Vehicle | Company | Avg. Annual Premium |
|---|---|---|
| Pleasure | Allstate | $2424 |
| Work - One-way commute (10-15 miles) | Allstate | $2406 |
| Work - One-way commute (10-15 miles) | Farmers | $1800 |
| Pleasure | Farmers | $1797 |
| Work - One-way commute (10-15 miles) | Farmers | $1563 |
| Pleasure | Farmers | $1551 |
| Work - One-way commute (10-15 miles) | Nationwide | $1500 |
| Pleasure | Nationwide | $1485 |
| Work - One-way commute (10-15 miles) | Progressive | $1911 |
| Pleasure | Progressive | $1899 |
| Pleasure | State Farm | $1578 |
| Work - One-way commute (10-15 miles) | State Farm | $1581 |
| Pleasure | USAA | $1377 |
| Work - One-way commute (10-15 miles) | USAA | $1377 |
USAA is the least expensive choice for each car use. Not being able to get USAA is fine. Nationwide and Farmers are your next best options.
Your rates will change based on how well you drive, what kind of car you have, and who covers it. If you want to find the cheapest car insurance, look at as many choices as you can. Type in your zip code to find rates that are cheap for both business and pleasure uses of your car.
The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
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