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Car Insurance for Self-Employed People: Quote, Discounts 2022

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Why you can trust Insurify

Insurify is America's highest-rated insurance comparison platform. We partner with the nation's top insurance companies and are licensed as an agent in all 50 states. However, the insurance experts writing our content operate independently of our partners, and you can learn more about how we make money by viewing our advertising disclosures. Also check out reviews from over 3,000 satisfied customers, our data methodology, and our editorial standards.
Maria Sanchez
Written by
Maria Sanchez
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Written by
Maria Sanchez
Insurance Writer
Maria Sanchez is a personal finance writer specializing in auto, home, and renters insurance. With a special interest in educational content, Maria distills complex financial information to be more accessible to the greater public. She holds degrees from the University of Massachusetts and the London School of Economics.
Jackie Cohen
Edited by
Jackie Cohen
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Edited by
Jackie Cohen
Editorial Manager
Jackie Cohen is an editorial manager at Insurify specializing in property & casualty insurance educational content. She has years of experience analyzing insurance trends and helping consumers better understand their insurance coverage to make informed decisions about their finances.Jackie's work has been cited in USA Today, The Balance, and The Washington Times.
Amber Benka
Reviewed by
Amber Benka
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Reviewed by
Amber Benka
Licensed Insurance Agent
Amber Benka is a licensed insurance agent specializing in auto, home, commercial, life, and health insurance.

Updated June 15, 2022

Being self-employed can come with a lot of perks: you get to be your own boss, run on your own schedule, and don’t have to ask for vacation days. But what does it mean for how much your car insurance costs? Usually, your occupation can help determine how much you pay for your car insurance premium because insurers use this information to calculate risk and costs.

If you fall under the category of independent contractor or self-employed individual, Insurify can help you find insurance quotes that fit your personal and professional lifestyles. When you’re your own boss, the lines between the two can blur, but that shouldn’t mean compromising on quality insurance. Keep reading to find out ways you can compare car insurance premiums.

Quick Facts

  • The cheapest insurer we found for self-employed drivers is Foremost Signature, with average premiums of $148 per month.

  • Self-employed drivers see the cheapest car insurance rates in Hawaii, North Carolina, and Maine.

  • If a self-employed driver uses their car for work, their auto insurance is tax deductible.

Best Car Insurance Rates for Self-Employed Drivers by Company

Is car insurance tax deductible?

If you use your car for business purposes, you can file for savings on your tax return. Drivers who use their car commercially might also want to consider a commercial insurance policy or a business use add on to their personal auto insurance policy.

On average, self-employed drivers do not pay more in car insurance than other drivers. Unless you opt for business car insurance, the cost is about the same. Business car insurance is another option, but it tends to be pricier because insurance companies see those drivers as being at a higher risk of getting into car accidents and filing claims because they drive more.

Insurance CompanyMonthly Quote for Federal Employees
Amigo USA$116
Kemper$134
Travelers$153
Clearcover$161
National General$165
AssuranceAmerica$167
Nationwide$186
Freedom National$217
Bristol West$227
Mercury$229
Liberty Mutual$246
The General$279
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

See More: Best Car Insurance Companies

How does being self-employed affect car insurance?

On average, people who are self-employed or independent contractors do not have to pay more for car insurance. Sometimes, insurance companies might just reward those who have jobs that are seen as less risky. In any case, there are always ways to save on your car insurance by finding discounts. We’ll also explain how companies view different job titles.

When calculating auto insurance premiums, insurance companies take people’s jobs into account. A policyholder’s occupation can be used to determine what they pay for insurance because some companies connect certain jobs with safe driving and reward them with lower costs. For example, someone who works in public service might pay less than a car valet.

While this is just based on historical data and assumptions, occupation is typically a deciding factor of whether someone is considered at higher risk of car accidents and collisions. In most cases, self-employed individuals and independent contractors are not immediately seen as more or less at high risk because of self-employment. It depends more on their specific job title.

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Tax Implications for Car Insurance for Self-Employed Drivers

Depending on how you use your car—if it’s for business purposes and not entirely for personal use—you can file for savings on your tax return. If you rely on your car heavily for your work, then you can deduct those costs as business expenses when you go to file your taxes. This can get tricky, so be sure to talk to a tax professional for more advice if you have questions.

Self-employed drivers, like those who work for Uber or Lyft tend to have more vehicle expenses and drive a higher mileage rate than the average person. They rely on their cars for more than just driving to and from the office. They have to use their cars for their jobs and not just for personal reasons. This usually looks like more in gas, tolls, mileage, and parking fees.

Is auto insurance tax deductible? For self-employed drivers, the answer is yes. Car insurance is counted as a business-related expense, as they rely on driving to do their work. Other car-related expenses that result from work, such as gas, tolls, parking fees, servicing, and repairs, can also be claimed as tax deductions.

Being a self-employed driver has its pros and cons. While taxpayers can be rewarded with write-offs or tax deductions that mean paying less in taxes, they might face quicker depreciation of their vehicles because of higher mileage. For this reason, some self-employed people who do not rely on traveling much—like those who work in a home office—might have an advantage.

See More: Cheap Car Insurance

Best Car Insurance Discounts for Self-Employed Drivers

Regardless of occupation, drivers—self-employed or not—can usually see significant savings for keeping a clean driving record free of collisions and claims. We always recommend being a cautious driver if possible and encouraging other people on your policy (if any) to drive safely. Not only does this lead to discounts, but it keeps people safe, too.

If you have two drivers and one car, then you could qualify for a multiple-driver discount. This might be especially helpful if you are co-owners of the same business driving the same car to keep things running. Similarly, you could consider a multi-vehicle policy, where you register multiple cars under the same auto insurance policy. This could lead to some big savings.

Also, you can always get discounts when you bundle multiple policies under the same company. For example, insurance companies usually reward policyholders who buy their homeowners or renters insurance, auto insurance, life insurance, and more with them.

See More: Best and Worst Sites to Compare Car Insurance

Cheapest States for Car Insurance for Self-Employed Drivers

To help you out, Insurify put together a list of the cheapest states for self-employed drivers. This way, you can be sure you’re getting full coverage to protect you while keeping your business running. Staying safe while driving shouldn’t cost you an arm and a leg. Keep reading to see the average monthly quotes in the cheapest states.

Insurance CompanyCheapest Monthly Quote
Hawaii$105
North Carolina$127
Maine$129
New Hampshire$130
Idaho$131
Vermont$135
Indiana$137
Ohio$141
South Dakota$143
North Dakota$144
Wyoming$144
Iowa$147
Wisconsin$148
Montana$149
Illinois$151
New Mexico$152
Tennessee$157
Massachusetts$158
Alaska$161
Utah$162
Minnesota$163
Nebraska$168
Alabama$171
Pennsylvania$171
Oregon$172
Oklahoma$175
Kansas$176
Virginia$181
Arkansas$187
West Virginia$189
Arizona$196
Mississippi$196
California$209
Washington$210
Colorado$224
Missouri$226
Washington, D.C.$233
Texas$234
Kentucky$253
Connecticut$264
New Jersey$265
South Carolina$266
Florida$274
Maryland$277
Delaware$291
Georgia$294
Nevada$294
Rhode Island$307
Louisiana$318
New York$346
Michigan$380
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

Tips for Cheaper Car Insurance for Self-Employed Drivers

Self-employed drivers use their car more often than the average driver, so it’s extra important to be insured. Luckily, there are a lot of ways to save on an auto insurance policy. The absolute easiest way to get best car insurance is to shop around first to make sure you are getting the best rates, on top of any additional discounts. Keep on reading for more money-saving tips!

Be a Safe Driver

With all the increased driving you do for work, it’s extra important that you stay safe on the road. Safe drivers are rewarded with big discounts on their policies for staying claim- and collision-free.

Don’t Pay for Unnecessary Coverage

Even though you drive more than the average person, you might not need all the extra add-ons—like collision and comprehensive coverage—for a car worth less than $4,000. Be sure to check your state requirements before dropping any coverage, though!

Shop Around for Car Insurance

The easiest ways to save money on your car insurance policy is by shopping around for the cheapest rates. The same driver can get a variety of costs and auto insurance rates just by collecting quotes from different companies. Insurify is the number one place to compare multiple quotes to make sure you’re getting coverage at a good price.

The Best Way to Compare and Get Cheaper Car Insurance

Being self-employed can have its perks—most people dream of being their own boss and putting together their own schedules. But relying on your personal car to keep your business running can have its downsides, too. Either way, it’s important that you have the right insurance coverage to keep you safe while being a business owner.

Luckily for you, Insurify can help you get the best deal on your auto insurance policy. In just a matter of minutes and at no cost to you, our insurance experts can help you find a policy that fits your lifestyle and business goals. Using Insurify is the best way to find the cheapest car insurance rates so you know you’re getting the best coverage.

Frequently Asked Questions

  • Yes! If you rely on your car mainly for work instead of personal reasons, car insurance counts as a business-related expense. Be sure to talk with a tax professional if you have any questions.

  • It’s easy for self-employed drivers to get cheaper rates by using Insurify! Stay safe on the road while keeping your business going with affordable rates and available discounts.

  • Insurify is the number one place to get multiple quotes from insurance companies. In a matter of minutes, our tools help you shop around for the best rates and full coverage—all for free.

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  • Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.

Maria Sanchez
Written by
Maria Sanchez

Insurance Writer

Maria Sanchez is a personal finance writer specializing in auto, home, and renters insurance. With a special interest in educational content, Maria distills complex financial information to be more accessible to the greater public. She holds degrees from the University of Massachusetts and the London School of Economics.

Learn More
Jackie Cohen
Edited by
Jackie Cohen
Linkedin

Editorial Manager

Photo of an Insurify author
Edited by
Jackie Cohen
Editorial Manager
Jackie Cohen is an editorial manager at Insurify specializing in property & casualty insurance educational content. She has years of experience analyzing insurance trends and helping consumers better understand their insurance coverage to make informed decisions about their finances.Jackie's work has been cited in USA Today, The Balance, and The Washington Times.
Amber Benka
Reviewed by
Amber Benka

Licensed Insurance Agent

Icon of a woman
Reviewed by
Amber Benka
Licensed Insurance Agent
Amber Benka is a licensed insurance agent specializing in auto, home, commercial, life, and health insurance.