Cheapest Used-Car Insurance (2024)

Used-car insurance costs an average of $198 per month, which is the same as the average cost of coverage for a new car.

Taylor Milam-Samuel
Taylor Milam-Samuel
  • 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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Danny Smith
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Danny 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.

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Konstantin Halachev
Data reviewed byKonstantin Halachev
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Konstantin HalachevVice President of Engineering
  • 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 April 15, 2024

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Cheapest recent rates

Drivers using Insurify have found quotes as cheap as $35/mo for liability only and $44/mo for full coverage.

*Quotes generated for Insurify users within the last 10 days. Last updated on April 15, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from April 15, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users within the last 10 days. Last updated on April 15, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from April 15, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

Saving money is one of the biggest perks of buying a used car. You might also expect to save money on car insurance coverage, but the cost to insure a new car and used car is usually the same.

The average cost of coverage for a used car is $198 — the same as the average cost to insure a new vehicle. Even though the average prices are identical, you still have ways to save on used-car coverage. For example, full-coverage car insurance is typically cheaper for used cars. Major insurance companies, like USAA, State Farm, and GEICO, have average monthly prices of $50 or less for used vehicles.

Quick Facts
  • Even though the average cost of car insurance is the same 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 CompanyAverage 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.

Vehicle2016 Model Car2023 Model Car% Increase
Toyota Highlander$178$23633%
Honda CR-V$202$25828%
Mazda CX-9$222$28026%
Subaru Outback$138$18534%
Honda Civic$161$21232%
Toyota Prius$185$24834%
Toyota Tacoma$199$26433%
Subaru Impreza$172$22330%
Honda Accord$221$29232%
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.

  • illustration card https://a.storyblok.com/f/162273/x/169fdfde11/liability-coverage.svg

    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]

  • illustration card https://a.storyblok.com/f/162273/x/db598219e3/damage-from-aircraft.svg

    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.

  • illustration card https://a.storyblok.com/f/162273/x/665da91bf7/comprehensive-coverage.svg

    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 is typically the same as that of a new car. The pricing may differ in some instances, but 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
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • 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.

Sources

  1. III. "What determines the price of an auto insurance policy?."
  2. III. "Auto Insurance Basics."
  3. Ca.gov. "Automobile Insurance Text Version."
Taylor Milam-Samuel
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.

Danny Smith
Edited byDanny Smith
Photo of an Insurify author
Danny 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

media logo
Konstantin Halachev
Data reviewed byKonstantin HalachevVice President of Engineering
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 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.

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