AMHERYST, N.Y., July 17, 2020 /PRNewswire/ -- If you offer a VRP (Vehicle Reimbursement Program) to employees a key data point is the cost for insuring vehicles with a 'business use' designation. Consider that a FAVR (Fixed and Variable Rate) program is tailored to regional insurance premiums as well as other cost of living factors. CarData keeps track of the current data that builds these programs to help our clients make informed decisions when deciding on the right Vehicle Profiles to use for reimbursement.
As an aside, be mindful of how a 'business use' designation is determined and differs from pleasure use or commercial use status, We'd be happy to talk through the details with you, which just might include discussion of the most expensive cities and states in the U.S. Here they are:
Michigan – Let's start with the reasons why Michigan is the most expensive. Michigan requires Personal Injury Protection (PIP) coverage that provides lifetime benefits to victims in some situations, and it has the most comprehensive no-fault insurance system in the nation. However, in July 2020, there will be several changes to the requirements that should drive down costs. For example, you won't need to buy unlimited no-fault PIP benefits. In the meantime, drivers based in Detroit will pay an average of $4,252 per year and those in Flint will be out of pocket $3,242. Statewide, the average is $2,614.
Florida – The average premium in Miami is $3,868; West Palm Beach and Tampa are close behind at $3,409 and $3,117, respectively. The Sunshine State is vulnerable to hurricanes and other severe weather events that cause a lot of damage, payouts and premium increases. Florida also requires all drivers to carry Personal Injury Protection (PIP) coverage, which accounts for 25% of the premium. To top it off, Florida experiences more car insurance fraud than any other state resulting in an average premium of $2,575.
New Jersey – Traffic congestion leads to accidents; accidents drive up premiums. When you add on PIP coverage up to $250,000 and a high volume of medical fraud, you get premiums of $3,367 in Newark and $2,976 in Bergen. Furthermore, on top of legally required coverage, many businesses are required to have extra coverage for property damage and personal injury claims. Survey data for the entire state yields an average of $2,569 annual premium.
Connecticut – The overall average premium in the state of Connecticut is $2,557. Hartford is the capital and where business use drivers average $2,894/year in insurance premium. New Haven is about 40 miles away, on the coast, and only slightly less costly at $2,744. Connecticut is characterized as an urban state with road congestion, CT has higher disposable income resulting min more expensive vehicles and increased liability limits. To top it off 35% of the roads are in poor repair.
Louisiana – A salesperson with a speeding ticket, a not-at-fault collision and business use insurance will pay $3,187 in New Orleans. What drives high premiums in Louisiana? Natural disasters, some of the worst maintained roads in the country and the ability to directly sue insurance companies. Louisiana lawsuit settlements against insurance companies totaled $7 billion in 2019, which is a big part of why the statewide average is $2,454.
About CarData Consultants
CarData provides precision vehicle reimbursement programs for the mobile workforce. CarData services save money, reduce risk, and remove administration. CarData programs are compliant with the IRS and the CRA procedures.
MEDIA Contact: Megan Dean
Marketing Communications | CarData Consultants Inc.
Direct: 303-434-3307 | FAX: 929-235-7525
[email protected]
SOURCE CarData Consultants
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July 17, 2020 at 07:33PM
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Top 5 Most Expensive States for Business Use Vehicle Insurance in 2020 - PRNewswire
"expensive" - Google News
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