On average, used car insurance
costs $124 per month for minimum coverage and $269 per month for full coverage. However, these rates may vary based on your vehicle’s make and model year. To find accurate insurance rates for your used car, you’ll need to compare auto insurance quotes from different providers. You don’t need car insurance to buy a used car—but you will need it to drive
You can sometimes buy a used car without insurance, but before you get in your new-to-you vehicle to drive home, you must have a policy in place.
When buying your vehicle from a lender, you’ll generally be required to provide proof of insurance
to leave the dealership. And although a private seller might not check your insurance card when you buy a vehicle from them, it’s best to secure an auto insurance policy before picking up your used car—that way, you’ll be in accordance with car insurance laws, while also avoiding a possible lapse in coverage. 
Is there a grace period for used car insurance?
When you buy a new car (used or not), your insurance provider will typically supply you with a grace period
to add your vehicle to your existing policy. But even so, you should add any new vehicle purchase to your policy as soon as possible to avoid a potential lapse in coverage
.
Building a used car insurance policy
When you’re shopping for car insurance, any policy you buy will include the minimum liability coverage required by your state. You can also choose to add physical damage for your own vehicle, often referred to as full-coverage car insurance
. The type of coverage
you choose will depend on your state’s insurance requirements, personal driver needs, and vehicle lifespan. Minimum coverage car insurance for used cars
Every state has laws stating the minimum amount of car insurance required to drive. The most important type of car insurance that states require is liability car insurance, which covers expenses related to property damage liability
and bodily injury liability
for third parties after you cause an accident—and only up to your policy limits. A minimum coverage car insurance policy—or liability-only policy—is generally the cheapest option. Drivers with used cars typically pay an average of $124 per month for the state minimum coverage, but you may be able to find it cheaper with these providers:
However, while liability coverage is cheaper than a full-coverage policy, it may not yield the best protection. This is because basic liability insurance only covers other drivers—not yourself.
If you’re involved in an accident and you only have liability insurance, you will be responsible for your own repairs and medical expenses. And if the other driver’s injuries and property damages exceed your liability limits, you may be held responsible for paying the remainder of their costs, as well.
As a result, most experts recommend drivers consider a full-coverage policy and higher liability limits. Most states require drivers to purchase liability coverage limits of 25/50/25—this refers to up to $25,000 for bodily injury to a single person, up to $50,000 for bodily injury from a single accident, and up to $25,000 for property damage costs from a single accident. Car insurance agents often recommend increasing your limits to 50/100/50 or 100/300/100.
VP Insurance Operations, 18+ Years Experience in Insurance
A general rule that I recommend is to carry enough coverage to protect your current and future assets – at least $100,000/$300,000 of liability coverage is recommended, but you may need more coverage depending on your financial situation.
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Full-coverage car insurance for used cars
A full-coverage policy generally comes with liability insurance, comprehensive coverage
, and collision coverage
to protect your vehicle from damage due to collisions, theft, vandalism, severe weather, and more. Full-coverage policies with higher liability limits can be expensive, but shopping with these insurers can help negate the overall costs:
Unless your car is fully paid for, you should plan on carrying a full-coverage insurance policy. Even once you own your vehicle outright, you will most likely be better served by full coverage than minimum coverage. Remember, if you’re buying your used car from a lender, you’ll likely be required to purchase a full-coverage policy to protect your vehicle from unexpected damages.
Other types of coverage for used cars
You can also add additional coverage options to your full coverage policy. If you own a used car, some add-ons can provide your vehicle with the extra protection it may need—especially if it’s over five years old. These include:
Classic car insurance
: If your used car is high value or vintage, you’ll want to check out classic car insurance. This coverage offers affordable specialized coverage for your unique vehicle. Full glass coverage
: Full glass coverage is another optional type of car insurance. It often covers window repairs and windshield repairs with no deductible required.Mechanical breakdown insurance (MBI)
: When buying a used car from a dealership or lender, consider asking about MBI. This type of coverage will pay out for major vehicle failures, such as bad brakes, transmission problems, electrical wiring complications, and more. Medical payments insurance (MedPay)
: This car insurance add-on covers various medical expenses for you and your passengers after an accident. MedPay is a required coverage in Maine and New Hampshire. Personal Injury Protection (PIP):
PIP pays for a variety of medical expenses following an accident. It generally covers a wider range of medical expenses than MedPay. PIP is required in certain states. Roadside assistance
: Several car insurance companies, including Progressive
and Travelers
, offer roadside assistance (or towing and labor coverage) as an add-on insurance option. This coverage will pay for towing services, lockouts, flat tires, gas delivery, and more. If you opt to go with a roadside assistance provider, like AAA
, you can get further aid with specific memberships.Underinsured/uninsured motorist coverage
: This coverage will protect you financially if you are involved in an accident with someone who doesn’t have insurance or doesn’t have enough to cover your damages. Uninsured motorist coverage is required in some states.
Gap insurance may not be necessary (or available)
Gap insurance covers the cost between your car’s actual cash value (ACV) and remaining loan amount at the time of a total loss. While it’s a good investment if you’re financing a used car, it may not be ideal if you bought from a private seller and own your car outright. Keep in mind that not all used cars are eligible for gap insurance—some companies require your vehicle to be less than three years old to qualify.
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars 4.7/5 app rating | Trusted by 5M+ drivers Average used car insurance costs
The average cost of car insurance for a used vehicle is $124 per month—or $1,500 per year—for a liability-only insurance policy
. For full coverage
, drivers pay an average of $269 per month, or $3,230 per year. Technically speaking, your vehicle is used the moment the title is transferred
at the dealership. Even a 2024 Tesla Model Y is considered “used” by dealers once it’s sold. As your vehicle continues to age, it will depreciate in value. While liability insurance costs don’t change much as a vehicle ages, full-coverage auto insurance rates tend to fluctuate as the costs for repairs and replacement increase.
All in all, full-coverage rates on a common, less expensive vehicle, like a Toyota Camry
, will usually decrease with age, while coverage for more expensive, less popular, or discontinued vehicles can increase over time. To see just how your monthly rates can change over time, we used the same popular makes and broke down the data to determine the average cost of car insurance based on model year. Here’s what we found:
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The best car insurance companies for used cars
Not every car insurance company calculates rates in the same way
. That’s why it’s important to request quotes from dozens of insurers before choosing a car insurance policy. After reviewing thousands of real customer policies, we discovered that these auto insurance companies offer some of the cheapest car insurance premiums for drivers with used vehicles:
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While it is often cheaper to insure a used car over a new car, this may not always be the case, especially if you own a luxury model.
For an accurate representation of your potential car insurance costs, turn to the Jerry
app. After you create your account and select your coverage options, you can run quotes from dozens of providers, all tailored to your unique profile. If you’re heading out to buy a used car, Jerry can provide you with same-day car insurance. Several of our top providers offer instant coverage, and the entire process, from quoting to securing a policy, takes under two hours.
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FAQ
Is it cheaper to insure a new car or a used car?
Generally, it’s cheaper for used car insurance than new car insurance
. When a vehicle ages, its value depreciates, often lowering the cost of insurance. However, this rule may not apply if you have a poor driving record or a more luxury vehicle, like a Tesla Model 3
. What factors affect the cost of insurance for a used car?
Your driving record, age, vehicle model and make, coverage types, and location are some of the top factors that affect your car insurance rates
. Other elements could be your credit score, insurance history, and marital status, depending on your state laws. How do I transfer insurance to a new used car?
To transfer your existing car insurance
to a used vehicle, you will first need to notify your insurance company. From there, you’ll choose your coverage start date to ensure you don’t face a lapse in coverage
. If you’re getting your used car from a lender, you’ll also need to notify them of the change. Keep in mind that your rate may change during this time, depending on your new vehicle’s make and model. Is it worth getting full coverage on an old car?
A majority of drivers, either with a new or used vehicle, will benefit from a full-coverage car insurance policy
. In a full-coverage option, most drivers include collision insurance
and comprehensive insurance
for added vehicle protection, which may be beneficial if your used car is over five years old. Which type of insurance is best for an old car?
For used vehicles over five years old, a full-coverage policy
with higher liability limits of 50/100/50 or 100/300/100 is one of the best options. For added protection, drivers can also opt into added insurance coverages, such as roadside assistance
. This way, you can be confident you and your vehicle will be well covered. Why is used car insurance cheaper?
Used car insurance is generally cheaper than new car insurance due to depreciation. After you leave the lot with your new car, it begins to lose value. The older your car is, the less it’s worth, which in turn, makes your overall insurance premiums lower.
