Used Car Insurance (Jan 2024)
Full coverage policies on used vehicles tend to be cheaper than the same coverage on a new model, but liability insurance rates stay about the same.
Written by Sarah Gray
Edited by Jessica Barrett
Based on some of the popular used car models we researched, you can expect to pay an average of $2,016 annually for full coverage on a new vehicle and around $1,723 per year for full coverage on the same vehicle six years later. While used car insurance is often cheaper than insurance on a new car, used vehicles aren't always the
cheapest cars to insure
.- Popular, economically priced vehicles still in production offer the cheapest car insurance costs thanks to readily available parts and cheaper repair costs.
- Even if you own your used car outright, you probably still need full coverage to ensure you’re financially secure in case of an accident.
- Popular, economically priced vehicles still in production offer the cheapest car insurance costs thanks to readily available parts and cheaper repair costs.
- Even if you own your used car outright, you probably still need full coverage to ensure you’re financially secure in case of an accident.
Used car insurance: The basics
Put simply, used car insurance is just car insurance coverage for a car that’s not brand new.
What you pay for insurance on your used vehicles will depend on several factors, the most important of which are the vehicle’s age and the level of coverage you choose. But contrary to what you may be thinking, used car insurance isn’t always cheaper than new car insurance—in fact, it’s sometimes more expensive.
Used cars aren’t always cheaper to insure
Used cars aren’t always cheaper to insure
Liability insurance costs don’t change much as a vehicle ages, but full-coverage auto insurance rates tend to fluctuate as the vehicle depreciates and costs for repairs and replacement change.
- Full-coverage rates on a common, less expensive vehicle, like a Toyota Camry, will usually decrease with age
- Coverage for more expensive, less popular, or discontinued vehicles can increase over time
Your premium is also based on a number of highly individualized factors, including:
- Your average monthly mileage: The more you drive, the riskier you are to insure—and the more you'll pay for car insurance.
- Your age and marital status: Married drivers between the ages of 25 and 75 pay the lowest rates.
- Your credit score: Higher credit scores typically equate to lower premiums.
Pro Tip: Experts place the “sweet spot” for buying a used car at between two and four years old, which usually equates to between 20,000 and 40,000 miles on the odometer.
Average used auto coverage rates
Based on popular used models included in the list below, drivers should expect to pay an average of $2,016 annually for full coverage on a new vehicle and around $1,723 per year for full coverage on the same vehicle six years later.
To give you a better idea of how used car insurance rates fluctuate by model and model year, take a look at the table below.
Model | Average when new | 2021 average | 2019 average | 2017 average |
|---|---|---|---|---|
$2,093 | $1,935 | $1,768 | $1,652 | |
$2,077 | $2,064 | $1,892 | $1,845 | |
$1,878 | $1,848 | $1,735 | $1,793 | |
$2,932 | $2,536 | $2,154 | $2,400 | |
$1,861 | $1,803 | $1,705 | $1,639 | |
$1,657 | $1,625 | $1,576 | $1,322 | |
$1,614 | $1,590 | $1,441 | $1,410 |
Rates for liability-only coverage tend to remain stable over time—the current national average is about $2,160 per year. If this average seems high, keep in mind that it includes states with exceptionally high insurance rates, like New York and Maryland. Liability-only rates in some states are often well below $1,000 per year.
Methodology:
Our calculations are based on an average of two datasets:
- Real quotes from policies sold to Jerry users.
- Public data from news, automotive, and financial advice websites, including Forbes, Car and Driver, USA Today, and Experian.
The best car insurance providers for used cars
The rate you pay for car insurance also depends on your provider. Some of the best car insurance companies for used car insurance are also popular for new vehicle coverage. These include:
Expert Tip When you’re shopping for used car insurance, you can often find lower rates from smaller regional providers, like Mercury or Erie.
You might need full coverage on your used vehicle
Unless your car is fully paid for, you should plan on carrying a
full-coverage insurance policy
. Even once you own your vehicle outright, most drivers are better served by full coverage than minimum coverage.To see if you still need full coverage on your used car, ask yourself this question: If you lost your car tomorrow, would you be financially capable of finding new transportation on your own? If the answer is no—and it will be for most of us—then you still need full coverage.
Keep in mind: If you have a car loan, your lender will likely require you to carry full coverage, even if the loan is for a used car.
How to find cheap coverage for your used car
You may think it’s impossible to find good cheap luxury car insurance, but with these
tips from Jerry’s insurance experts
, you could find yourself saving hundreds a year on your premiums:- Choose your vehicle carefully: Newer used vehicles with lots of options will cost more to buy and will cost more to insure. That said, the more safety features you have, the lower your cost of insurance may be.
- Take advantage of discounts: Frombundling homeowners and auto coveragetosafe-driver discounts, most insurers offer lots of ways to help you save.
- Keep a clean driving record: The fewer moving violations and at-fault accidents on your record, thelower your premiums.
- Increase your deductible: Your deductible is the amount you pay out of pocket before your collision or comprehensive insurance kicks in to cover a claim. The higher this amount, the lower your premium, but be sure youchoose a deductibleyou’ll be able to afford to pay.
- Compare car insurance quotes: Comparing rates from multiple providers is the best way to ensure you’ve always got the best auto insurance coverage at the best rates, no matter how old your car is.Jerry, the AllCar™ app, cancompare quotesfrom over 55 of the nation’s top providers in under a minute. Plus, with the bank-level security offered by Jerry’s DataLock Guarantee™, you’ll never have to worry about having your information sold to telemarketers.
FAQs
Is it cheaper to insure a used car than a new car?
It’s usually cheaper to insure a used vehicle than a new one, but it depends on the vehicle in question and its age. If you have a high-end car or one that’s no longer in production, you may see your rates increase as the vehicle ages.
Do I need insurance for my used car?
Yes. Every state except New Hampshire requires car insurance, so even used vehicles must be insured at least in accordance with your state’s
minimum insurance requirements
to be driven legally.Is liability-only coverage enough for my used car?
Probably not. Even if you own your used car outright, you’ll still probably need full coverage. Unless you have the financial security to handle your own alternative transportation if your car is totaled or rendered inoperable, you need full coverage.
What used cars are the cheapest to insure?
In general, economically priced, popular vehicles that are still in production are the cheapest to insure.
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