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Edited by Jackie Cohen
Updated September 15, 2022
Who cares if it isn’t “brand-new”? It’s new to you, and that’s what matters! A used vehicle is much more affordable—and arguably just as exciting!—as a new car. Even though all the paperwork has just begun, with registration, new license plates, and perhaps a loan, you’ll want to take some time to shop around for good and cheap car insurance.
Luckily, with a used car, you’ll have an easier time finding cheap car insurance than you would with a new vehicle. And Insurify makes it even easier, searching far and wide for real quotes tailored to your profile. You’ll have a bird’s-eye view of the best policies in your area so you can identify the insurance company that’s right for you.
Used cars are cheaper to insure on average than new cars.
The average cost of car insurance for a used car is $135 per month.
Other factors, like the driver's credit score and address, will also contribute to their car insurance.
How much does car insurance cost for used cars?
Is it cheaper to insure used cars?
Yes, in general, car insurance policies are cheaper for used cars than new cars due to their relative depreciated value.
Although it certainly depends how used your new vehicle is and what coverage you need, the average cost of auto insurance for used cars is $135 per month. That’s substantial savings compared to a new vehicle.
If you bought your car outright from a private seller, your level of insurance coverage is up to you. But if you got a lien from your dealership and are still paying off your car, lenders will require you to have full coverage, which is more expensive, and maybe gap coverage.
Even if you’re not required to have full coverage, you’ll probably still want it, depending on your car’s value. For an older car with a low replacement cost, it may make sense to buy only liability coverage, which is much more affordable by itself. Later in this article, we’ll discuss how to build your used car’s auto insurance policy.
A good credit score and clean driving record will help you get lower rates, and so will a car with great safety features. But whatever your attributes are as a driver, you can only get the best rates if you find the right company for you.
Cheapest Car Insurance Companies for Used Cars
The car insurance market is large and diverse, and some insurance companies offer super-friendly premiums to drivers with used vehicles. Take a look at these average car insurance rates quoted for used cars to get a sense of the cost of car insurance you can expect:
|Insurance Company||Monthly Quote for Used Cars|
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The second-largest private auto insurance company in the United States, GEICOoffers low premiums to drivers with clean driving records anywhere in the country. Its customer satisfaction ratings are fine but not amazing, and drivers will benefit from a full suite of discounts and chances to bundle with motorcycle, homeowners, and renters insurance, among other policies.
If your driving record isn’t perfect, you might not get the best rates from GEICO. But they offer some of the most affordable minimum coverage policies out there, with discounts for military personnel, good students, and federal employees.
Another giant with a famous reputation, Progressive’s upbeat messaging makes it seem friendly and accessible—and this proves to be the case overall. Its mobile app is straightforward, and the company handles claims efficiently. Senior drivers get the best rates, and if you have a prior accident or other violation, you don’t have to panic about your premiums.
Progressive’s discounts are myriad and include markdowns for teen drivers, distant students, and students with good grades, a telematics discount called Snapshot, and multi-policy and multi-car discounts.
A reliable legacy company with financial stability, Allstate has a pretty good record across the board for customer service, affordability, tech features, and claims service. You might not get the best deal out there, but if you are looking for rock-solid coverage and an easy-to-use mobile app, Allstate is a great option.
Discounts from Allstate include a telematics program called Drivewise, a diminishing deductible provision, all manner of bundling discounts, and driver-based discounts for good students, multiple policies, driver training, and more.
There’s no car insurance company bigger than State Farm. And drivers benefit from its scale, with super-affordable auto insurance policies. Accidents and speeding tickets on your driving record won’t ding your premiums too bad, and customer satisfaction with State Farm is fairly high. Rideshare drivers can get good insurance coverage alongside their personal policy.
If your insurance portfolio contains several policies, you may well benefit from a relationship with State Farm, which offers generous bundling discounts and sells just about every insurance policy imaginable. Other discounts include good student, driver training, and usage-based policies. Local insurance agents are likely in your area.
If you qualify for USAA auto insurance as a current or former military service member or part of a military family, you’ll have a hard time finding better rates from a company with a better reputation than USAA. It tops customer satisfaction rankings year after year and sells policies with very low premiums.
Too bad USAA is limited to military families. But those who can buy a car insurance policy with USAA save the most with discounts for vehicle storage, anti-theft devices and other safety equipment, distant student drivers, and of course, military service. Perks include a good mobile app, roadside assistance, and a car-buying program.
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Cheapest States for Car Insurance for Used Cars
Your insurance premiums depend on how likely insurance companies think you are to get in a car accident. One of the most important metrics auto insurance companies use to guess this is your ZIP code. As a result, insurance rates can vary highly by state. Take a look at your home state in this chart to see what you can expect from insurance providers:
|State||Monthly Quote for Used Cars|
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Designing an Auto Insurance Policy for Your Used Car
When you buy a used car, finding low auto insurance rates is obviously an important goal. But there’s an additional challenge: making sure your level of coverage is sufficient and that you’re neither overpaying for unnecessary coverage nor leaving yourself exposed to paying for costly repairs out of pocket. It would be a shame to lose your vehicle to an accident!
Understanding Comprehensive Coverage and Collision Coverage
You’ve probably heard the terms “comprehensive coverage” and “collision coverage.” But what are they? The first thing to know is that they are in addition to liability insurance, which pays for property damage and bodily injury that you cause to other people. In most states, minimum coverage only includes liability coverage.
Comprehensive coverage protects your car from property damage sustained when the car is parked, such as theft, vandalism, or a baseball to the windshield.
Collision coverage covers repairs to your car and personal medical expenses in an accident, no matter who is at fault or what is involved in a collision. If you hit a tree or a parked car or you’re in a fender bender, collision coverage will reimburse you.
Together with liability insurance, combining comprehensive insurance and collision insurance make full-coverage car insurance. If you have an auto loan, you are almost always required to have full coverage.
See More: Cheap Car Insurance
Choosing a Deductible
When you make a claim, you are required to pay a deductible to the insurance provider before your car insurance coverage kicks in. Your deductible is usually $500, $1,000, or $1,500, and a lower deductible will raise your cost of insurance slightly. The higher the deductible, the lower the monthly cost.
Picking Your Level of Insurance Coverage
The way to tell if you need full coverage for your used car is to compare the full-coverage insurance premium with your car’s value. If the annual premium for full coverage is more than 10 percent of your used car’s value, insurance advisers say you’ll save money by opting for liability insurance only. Still, you might want the peace of mind of full coverage anyway.
If you took out a car loan on a used car that loses a lot of its value when it’s driven off the lot, you might owe more on the car than it’s currently worth. In this usually brief period of time, you’ll need gap insurance, but this is rare for used cars and only applies if you have a car loan.
I bought my insurance policy in a hurry. Can I cancel it?
If you bought the first insurance policy you could find because you needed proof of insurance to get the car off the lot or bought expensive insurance from the dealership, you can always cancel when you find the right policy for you. Remember that your current insurance company usually offers a grace period of 7 to 30 days to keep you covered between vehicles.
Shop Around for Car Insurance
A new car means a new opportunity to save money with car insurance, and Insurify is the best way to make the most of your clean slate. In just a few minutes, you’ll find a full list of auto insurance quotes that you can act on immediately. It’s a surefire way to get the auto insurance policy that your used vehicle deserves.
The Best Car Insurance Quotes for Used Cars
Used cars can be exciting but also a headache. Navigating the paperwork and salespeople gets confusing quickly. When it comes to insurance, you won’t regret turning to Insurify for advice. It’s a perfect one-stop-shop for auto insurance quotes and exclusive discounts. You found the perfect car—now find the perfect insurance policy.
Frequently Asked Questions
A used vehicle is almost always cheaper to insure than a new car. According to Insurify, the average monthly premium for a used car in the United States is $135 per month. Your level of coverage, driving history, age, credit score, ZIP code, and other aspects of your vehicle will determine your exact rate.
Whether you just bought a Honda or a Hummer, cheap car insurance is out there waiting for your used car. But you have to put in the work of finding all the auto insurance quotes you can find from the best companies. As with many products out there, comparison-shopping is the way to go.
Insurify has helped drivers save over $44 million on insurance premiums by presenting them with personalized quotes from the top auto insurance companies on an easy-to-use website. It’s free, it’s fast, and it makes the confusing headache of looking for insurance quotes a total breeze.
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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.