Best Auto Insurance Companies for a Used Vehicle (2021)

When searching for the best auto insurance companies for a used vehicle, searching online is the quickest way to compare companies. While the best auto companies' rates for a used vehicle are similar, the payout will be less when you have an older car. For this reason, owners might purchase less coverage, decreasing their rates.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Aug 26, 2021

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Things to Remember

  • Drivers receive less of a payout for used vehicles
  • Drivers usually obtain less coverage for used vehicles
  • Buying auto insurance for used cars is the same as for new cars

Customers looking for cheap auto insurance might consider buying a used vehicle.

Auto insurance for a used vehicle is typically less expensive than for new cars, but not for the reason you might think. Understanding car insurance from the best auto companies for a used vehicle will help you make the right decision.

Before getting into the best auto companies for a used vehicle, enter your ZIP code into our free tool above to find cheap car insurance for used cars in your area.

Which of the best auto companies for a used vehicle has the lowest rates?

You can usually find cheaper auto insurance rates from the best affordable auto companies for a used vehicle than a new vehicle.

On average, rates for used cars are about $108 cheaper than coverage for new ones. The following chart shows the average six-month rates for a used and new car based on company.

Best Auto Companies for a Used Vehicle: Average Six-Month Rates for New and Used Cars by Company
CompanyAverage 6-month Rates for a New VehicleAverage 6-month Rates for a Used Vehicle
Allstate$1,213$929
Farmers$933$953
GEICO$698$618
Liberty Mutual$911$854
Nationwide$668$605
Progressive$935$775
State Farm$723$655
USAA$697$522
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As you can see, the best auto companies’ rates for a used vehicle are lower than for a new car. USAA has the lowest auto insurance rates for a new car and Farmers is the most expensive. A used car insurance calculator will help you determine your expected rates.

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Why are auto insurance rates from the best auto companies for a used vehicle cheaper?

Most people think that the best auto companies’ quotes for a used vehicle are cheaper because of its age. However, the reason why used cars have lower rates is that less coverage is typically purchased.

Owners of new cars are more likely to receive a higher payout because the vehicle is in better condition. Depending on the age of your used car, full coverage might not be worth the cost. For this reason, many used car owners avoid purchasing comprehensive and collision coverage.

Another reason why used car owners typically purchase less auto insurance is that they can. New cars are more likely to be leased or loaned, which might require full coverage. Used cars are more likely to be owned outright, which allows the buyer to obtain less coverage.

How can you save on auto insurance from the best auto companies for a used vehicle?

There are many factors that affect auto insurance rates. Drivers can’t control many of these factors, but the model of car impacts a used car insurance estimate. Looking for these factors when purchasing a used vehicle can help you achieve lower rates.

When buying cheap car insurance for used cars, two things to consider are safety and performance. Most auto insurance companies offer discounts for vehicles that have safety features installed. These vehicles are less likely to get into an accident and require a payout.

There is also a difference in used car insurance rates by model. High-performance cars are more expensive to insure because drivers are more likely to drive at higher speeds. Vehicles known for safety than performance will result in lower rates.

How do you insure a car if you already have coverage from the best auto companies for a used vehicle?

The easiest way to insure a new-to-you car is if you already have insurance. Contact your insurance company and inform them of your new purchase. The company will ask about it and if there is a price difference.

At this point, you can make any changes you might desire, such as buying used car insurance for repairs. You can also choose your coverage limits and set your deductibles. Financed vehicles usually require full coverage, even if you previously only had minimum coverage.

If you are keeping your other vehicle, that car should remain on the policy. Many auto insurance companies offer discounts for multiple vehicle policies. A representative can help you remove it from your policy if you plan on selling.

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How do you buy auto insurance from the best auto companies for a used vehicle?

Buying auto insurance from the best car companies for a used vehicle is the same as purchasing insurance for a new car. You can receive a quote online or through an agent. However, you might not need to buy coverage until after you acquire it.

When you need to buy auto insurance depends on where the used car is purchased. Buying a certified or non-certified pre-owned car from a dealership, an independent dealership, or CarMax might require insurance before the purchase.

Buying a used car from a private party, such as Craigslist or the Facebook Marketplace, you can avoid buying auto insurance until after the previous owner signs the title over to you. However, almost every state requires auto insurance before you can register your car with the DMV.

Best Auto Companies for a Used Vehicle: The Bottom Line

While purchasing a policy is the same, buying auto insurance for a used vehicle is often cheaper than for a new car. The insurance payout for a used vehicle is lower and less coverage is required.

Knowing the specifics of the best auto companies for a used vehicle will help you find the right auto insurance.

Now that you know more about finding auto insurance from the best auto companies for a used vehicle, enter your ZIP code to get free quotes in your area.

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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