Best Car Insurance for Used Cars

A used vehicle comes with many perks when you’re in the market for a new car. Used cars are typically cheaper than their newer counterparts, making great vehicles for people looking to keep their monthly costs down.

Used car insurance is also cheaper than coverage for new cars, usually because you can buy less coverage for it. In addition, if you drive an older used car, you’ll probably only need to meet your state’s minimum insurance requirements.

Read on to learn more about the best insurance for used cars and which types of coverage you need. Then, compare quotes with as many companies as possible to find the lowest rates.

What is used car insurance?

Used cars need the same type of coverage as new vehicles — there’s no such thing as second-hand car insurance.

While new car owners typically buy full coverage, you might not need that much coverage. In addition, finding a company that will sell you full coverage might be difficult if your car is too old. However, there’s some good news: used car insurance is typically cheaper than coverage for new vehicles.

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How much does car insurance cost for a used car?

People who own older used cars usually only need to meet their state’s minimum insurance requirements. Every state except Virginia and New Hampshire requires liability insurance, while several others include uninsured motorist or personal injury protection insurance in their requirements.

The average driver pays about $44 a month for minimum coverage, but rates vary significantly by state. You can check how much you might pay for insurance in your state below.

Since you don’t need more than minimum insurance if you own your vehicle outright, most used car insurance costs are relatively low. However, your rates will increase if you want additional coverage to your policy.

Which companies offer the best insurance for used cars?

The best companies for insurance on used cars tend to provide solid policies for vehicles of all types. While the company that best serves your needs depends on various factors, some of the best insurance for used cars comes from:

• Geico
• Progressive
• State Farm
• Allstate
• AAA
• Mercury

You might also find a smaller, local company that offers better insurance. For example, Wawanesa offers affordable insurance rates, but it’s only available in California and Oregon.

Does used car insurance cost less?

Car insurance for used cars usually costs less than coverage for new vehicles. However, used car insurance quotes are low because drivers tend to buy less coverage.

If you buy the least amount of insurance, your policy will likely be affordable. However, adding coverage like comprehensive insurance can significantly increase your rates. So if your car is old enough, additional insurance might not be worth it.

What type of insurance should you get for a used car?

Depending on your car’s age, you might only need to buy enough insurance to meet your state’s minimum requirements. Most states require bodily injury and property damage liability insurance, while others include uninsured motorist or personal injury protection coverage.

If you bought a used car from a dealership and got a loan to pay for it, your lender will likely require more insurance. Most lenders require collision and comprehensive insurance on top of your state’s minimum requirements.

Just because a car is used doesn’t mean it’s not valuable. Even if you own a used car outright, more coverage might be right for you. Full coverage — including liability, collision, comprehensive, uninsured motorist, and personal injury protection — is a good idea for valuable cars, even if they’re used.

Do you need GAP insurance on a used car?

GAP insurance covers the difference between what you owe on your car and how much your vehicle is worth. If you total your car with a remaining loan balance, you’ll be stuck paying for a vehicle you no longer own.

Most cars aren’t eligible for GAP insurance, including used cars. You can only buy GAP insurance for new vehicles without a previous owner. However, you could purchase loan/lease payoff insurance — it works similarly to GAP but extends coverage to used cars.

Loan/lease payoff coverage usually covers 25% of your car’s total value. Therefore, if you want loan/lease payoff insurance, you’ll need to search for the best coverage.

Can you buy repair insurance for a used car?

While you can buy car repair insurance, it’s usually not worth the price because it’s so expensive. It also might not be available for used cars.

Often, mechanical breakdown and car repair insurance — along with extended warranties — are only available for new cars. So you’ll likely have high rates if you want this protection for your used car.

Instead of buying repair car insurance, it’s better to set aside an emergency fund in case of unexpected repairs.

Can you buy a used car without insurance?

While you can buy a used car from a private seller without insurance, you can’t drive it home in most states. Even in states that don’t require insurance, you’ll need to prove financial responsibility before you drive on a public street.

If you already have car insurance, you can easily add your vehicle to an existing policy. You’ll also likely have a grace period where you can drive your new car before you add it to your policy.

How long do you have to buy car insurance?

Although all companies have their own guidelines, most allow drivers 30 days to add a new car to an existing policy. Insurance companies provide a grace period so you can drive to the DMV or get your car home safely.

While most companies give a 30-day grace period, double-check with a representative. For example, Nationwide only provides a grace period of 10 days.

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How to Save on Used Car Insurance

Car insurance for a used car is usually affordable, but there are ways to save even more. Consider the following ways to lower your car insurance bill:

• Choose the right coverage. Carefully choosing the right coverage level is an important step in saving money. You might be fine with minimum insurance if your used car is older.
• Look for discounts. Most insurance companies offer discounts to help their customers save. When researching companies, consider how many discounts they offer before deciding.
• Consider specialty insurance. If you have a used car that’s particularly old or valuable, classic car insurance might be a better fit for you. As a bonus, classic car insurance is usually cheaper than a standard policy.
• Raise your deductible. Your deductible is the portion you pay before your insurance kicks in. You can save money by choosing a larger deductible, but you’ll have a larger financial responsibility if you need to file a claim.
• Compare quotes. One of the most important steps in finding affordable coverage is to look at as many companies as possible. If you sign up with the first company you look at, you’ll likely overpay.

No matter what type of car insurance you need, comparing quotes is the most crucial part of finding affordable coverage.

Find the Best Car Insurance Today

Used cars have similar insurance needs as newer vehicles, but you can probably get away with less coverage. However, you don’t need to find special used car insurance — you’ll buy the same insurance no matter how old your car is.

Now that you know what type of car insurance you need, your next step should be comparing quotes. Comparing quotes is the most important step in finding affordable insurance for your used car.

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