Cheapest Used-Car Insurance (2025)
Used-car insurance costs an average of $198 per month, which is the same as the average cost of coverage for a new car.
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Written byTaylor Milam-Samuel
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8+ years writing for major outlets, including MarketWatch and Business Insider
Master’s in Education
Taylor Mlam-Samuel is a personal finance writer and credentialed educator. When she’s not helping readers better save and spend money, she can be found teaching.
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Edited byDanny Smith
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Licensed auto and home insurance agent
4+ years in content creation and marketing
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
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Reviewed byDavid Marlett
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David MarlettAdvisor
David Marlett is the Managing Director of the Brantley Risk and Insurance Center. He is a professor in the Department of Finance, Banking, and Insurance at Appalachian State University and holds the IIANC Distinguished Professorship. David also serves on the Board of Directors for the Invest program and previously chaired the Loman Advisory Committee for the CPCU Society.
David has taught courses in Risk Management and Insurance for the last 25 years, starting at Florida State University while in the doctoral program. Prior to graduate school, David worked as a commercial lines underwriter for USF&G in Tampa.
He serves as a resource on insurance issues and is a frequent media contributor. He has been quoted by a wide range of outlets, including The New York Times, CNN, Reuters, and NPR.
David has been reviewing articles for Insurify since March 2025.
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Data reviewed byKonstantin Halachev
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7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Updated
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Table of contents
Saving money is one of the biggest perks of buying a used car. The average cost for used car coverage is $198. Though liability-only rates may be similar to insuring a new vehicle, full-coverage car insurance is generally cheaper for used cars.
Major insurance companies, like USAA, State Farm, and GEICO, have average monthly prices of $50 or less for used vehicles. Learn more about used car insurance and if it’s right for you.
Quick Facts
Even though the liability-only average cost of car insurance is similar for used and new cars, full coverage is cheaper if you have a used car.
Full coverage might not make financial sense if your car is worth less than 10 times your insurance premium.
Your lender might mandate a full-coverage policy if you have a used-car loan.
How much does car insurance cost?
The average cost of used-car insurance is $198 per month. But you might pay significantly more or less, depending on the insurer you choose.
The same factors that affect the cost of new-car insurance also affect the cost of used-car insurance. Insurers consider your age, vehicle type, driving record, location, and gender when determining insurance costs.[1]
Cheapest used-car insurance
Most factors that determine car insurance costs are out of your control. But here’s the good news: Comparing quotes from multiple insurers is one of the quickest and most effective ways to lower car insurance costs. The following companies offer the cheapest car insurance rates for used cars.
Insurance Company  | Average Monthly Quote |
|---|---|
| USAA | $43 |
| State Farm | $48 |
| GEICO | $50 |
| Allstate | $59 |
| American Family | $72 |
| Progressive | $78 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Is it cheaper to insure a used car?
Insurance prices are usually much higher for new cars than used cars, especially for liability-only coverage. Liability insurance covers the cost of repairs and medical care for the other driver when you’re at fault for an accident.
Here’s how average insurance prices differ depending on the car model and age.
Vehicle | 2016 Model Car | 2023 Model Car | % Increase |
|---|---|---|---|
| Toyota Highlander | $178 | $236 | 33% |
| Honda CR-V | $202 | $258 | 28% |
| Mazda CX-9 | $222 | $280 | 26% |
| Subaru Outback | $138 | $185 | 34% |
| Honda Civic | $161 | $212 | 32% |
| Toyota Prius | $185 | $248 | 34% |
| Toyota Tacoma | $199 | $264 | 33% |
| Subaru Impreza | $172 | $223 | 30% |
| Honda Accord | $221 | $292 | 32% |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
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How to get cheap used-car insurance
Car insurance is a mandatory monthly expense that can add up. Here are steps you can take to lower your car insurance costs for a used car:
Compare multiple quotes. Get quotes from at least three insurers before you select a policy. Comparing quotes allows you to find the best deal.
Increase your deductible. When you increase your deductible, your monthly insurance costs usually decrease. The trade-off is that you have to pay more if you plan to use your insurance after an incident.
Ask about discounts. Most insurance agents notify you of discounts, but it’s always a good idea to double-check. Insurance companies offer discounts for safe driving, loyalty, military affiliation, and good grades.
Bundle insurance policies. Insurance companies often offer a discount for bundling different types of policies. For example, you might be able to bundle home insurance, auto insurance, and business insurance.
Used-car insurance coverages
Insurance companies typically offer two coverage options: liability only and full coverage. Nearly every state requires drivers to have liability insurance. Full coverage includes liability and extends the coverage to include collision and comprehensive. Here’s how each type of coverage works.
Liability coverage
Almost every state mandates liability insurance, which helps cover the cost of vehicle repairs and medical expenses for the other driver when you cause an accident. The coverage doesn’t help pay for the cost of your vehicle repairs. You need to add additional policies if you want that coverage.[2]
Collision coverage
When you think of car insurance, you probably think of car accidents. But car damage can come from different types of accidents, and collision coverage helps protect you. This coverage also helps pay for repairs if you hit a mailbox, pole, guardrail, or other stationary object.
Comprehensive coverage
Comprehensive coverage pays for damage to your car from various situations, including theft, fires, vandalism, natural disasters, broken windshields, and more. It helps cover the cost — minus your deductible — if your car needs repairs due to something other than a collision.
Used-car insurance grace period
Most insurers offer a grace period of up to 30 days if you already have an active car insurance policy. The grace period can help ensure you have coverage while adding a new vehicle to your policy if you’re buying a used car. Check with your insurance company to confirm how long the grace period lasts.
You don’t have a grace period if you don’t have an active insurance policy. It’s illegal to drive without car insurance coverage in nearly every state. Set up coverage before buying a used car to ensure that you follow the law and protect your finances.
Do you need full coverage on a used car?
Adding comprehensive and collision insurance when you have a used car only sometimes makes financial sense. The value of your vehicle can help you determine whether to move forward with a full-coverage policy.
You might opt for full coverage in the following situations:
You have a car loan. Lenders often require full-coverage insurance as additional protection for the loan. You may not have a choice if you have a car loan for your used car.[3]
Your car is worth at least 10 times the insurance premium. According to insurance experts, you can compare the worth of your vehicle to 10 times your insurance premium to determine if you need full coverage. For example, imagine your insurance premium is $1,600 per year ($1,600 x 10 = $16,000), and your car is worth $30,000. In that case, your vehicle is worth enough to justify the expense of full-coverage insurance.
You might want to skip a full-coverage policy if the following scenarios apply to you and your vehicle:
Your deductible is nearly the same as your car’s value. Full-coverage car insurance helps ensure you can pay for repairs to your vehicle if it’s damaged. But if your deductible is nearly the same as the value of your car, it might not be worth paying for repairs.
You expect to replace your car soon. It might not make sense to pay for additional coverage to protect your vehicle if it isn’t worth much and you plan to replace it soon.
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Do you need gap coverage on a used car?
No, you don’t need it, but you may want it. You might have an auto loan balance that’s more than your car is worth. If your vehicle is totaled, gap insurance helps pay the difference between what your car is worth and how much you owe.
For example, imagine you have $30,000 left on a car loan. Your car was totaled in an accident, and the appraiser determined that your vehicle is worth $20,000. After you use $20,000 from your insurer to pay off your car loan, you still owe $10,000. If you have gap insurance, this helps cover the remaining $10,000.
Good to Know
Gap insurance isn’t usually necessary for used cars because the amount you pay is typically similar to the vehicle’s current value. Plus, used cars lose value more slowly than new cars. But if you have a loan balance larger than the value of your used car, you might want to consider gap insurance. The extra coverage can help protect your finances if your car is totaled.
Used-car insurance FAQs
Below, you’ll find answers to some of the most commonly asked questions about used-car insurance.
Can you drive a used car off the lot without insurance?
No. You can’t drive a used car off the lot without insurance. You must have car insurance to drive. Each state determines the type and amount of coverage. If you already have an active policy, your insurer might give you a grace period of two to 30 days to add your used car to the policy.
Do you need insurance to buy a used car?
Yes. You need insurance before you drive a used car. If you purchase from a dealership, you must show proof of insurance or buy temporary insurance before leaving. You might be able to purchase a used car without proof of insurance from a private seller, but it’s illegal to drive without it.
Is it cheaper to insure a used car?
Not necessarily. The price to insure a used car in comparison to a new car may differ in some instances, though it’s usually close. Other factors typically have a bigger effect on the cost, like your age, location, credit history, and driving record.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
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Taylor Milam-Samuel
Taylor Milam-Samuel is a writer and credentialed educator who is fascinated by how people earn, save, and spend their money. When she's not researching financial terms and conditions, she can be found in the classroom teaching.
Taylor has been a contributor at Insurify since February 2023.
Edited byDanny Smith
Licensed auto and home insurance agent
4+ years in content creation and marketing
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
Featured in
David MarlettAdvisor
David Marlett is the Managing Director of the Brantley Risk and Insurance Center. He is a professor in the Department of Finance, Banking, and Insurance at Appalachian State University and holds the IIANC Distinguished Professorship. David also serves on the Board of Directors for the Invest program and previously chaired the Loman Advisory Committee for the CPCU Society.
David has taught courses in Risk Management and Insurance for the last 25 years, starting at Florida State University while in the doctoral program. Prior to graduate school, David worked as a commercial lines underwriter for USF&G in Tampa.
He serves as a resource on insurance issues and is a frequent media contributor. He has been quoted by a wide range of outlets, including The New York Times, CNN, Reuters, and NPR.
David has been reviewing articles for Insurify since March 2025.
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.