A used car is generally cheaper to insure than a new car, but rates may vary between makes and model years. Compare quotes from multiple insurers to find the best rate for your used car.
Do you need insurance to buy a used car?
You don’t need car insurance to buy a used car, but you need insurance to legally drive the car.
Most dealerships require proof of insurance before you can drive off the lot. Although a private seller may not check for insurance when you buy a vehicle from them, you still need a policy to legally drive the car.
Is there a grace period for used car insurance?
When you buy a car, your insurance provider typically gives you a grace period — typically between a week and a month — to add your vehicle to your existing policy. Even so, you should add any new vehicle purchase to your policy as soon as possible to avoid a lapse in coverage.
How to choose insurance for a used car
When you’re shopping for used car insurance, any policy you buy will include the state-required minimum liability coverage. You can also add coverage that protects your vehicle from physical damage, often referred to as full coverage car insurance, which includes comprehensive and collision insurance.
The type of coverage you choose depends on factors like your state’s insurance requirements, your needs as a driver, your vehicle’s lifespan and your budget.
Minimum coverage car insurance for used cars
Every state has laws that dictate the minimum amount of car insurance required to drive. This includes liability insurance, which often includes property damage liability and bodily injury liability, and pays only for damage you cause to others in an accident.
A minimum coverage car insurance policy — or liability-only policy — is cheaper than full coverage, but carrying only the required coverage means that if you cause an accident, you must pay for damage to your vehicle or property yourself.
Drivers with used cars typically pay an average of $189 per month for the state minimum coverage. Here’s the average cost of full coverage insurance with different insurers that provided quotes for vehicles from 2022 or earlier.
|
Insurance Company
|
Avg Monthly Quote
|
Avg Annual Quote
|
|---|---|---|
| Mapfre | $64 | $763 |
| Nationwide | $92 | $1,105 |
| Aspire Advantage | $100 | $1,200 |
| Bluefire | $110 | $1,319 |
| Freedom | $114 | $1,372 |
| Anchor General | $118 | $1,415 |
| Safeco | $124 | $1,492 |
| Clearcover | $125 | $1,496 |
| Commonwealth Insurance | $129 | $1,548 |
| Travelers | $130 | $1,563 |
If you have a loan or lease on your vehicle, the lender will require
If you’re found at fault 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.
For this reason, it may be worth considering a full coverage policy and higher liability limits. Many 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 to multiple people, and up to $25,000 for property damage from a single accident. Drivers can increase their limits to 50/100/50 or 100/300/100.
“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.”
Full coverage insurance for used cars
A full coverage policy includes liability insurance, comprehensive coverage and collision coverage to protect your vehicle from damage due to collisions, theft, vandalism, severe weather and more.
If your vehicle is leased or financed, the lender will require you to carry a full coverage policy.
Full coverage policies with higher liability limits can be expensive, but getting quotes from multiple insurers can help you find the most affordable option. Here’s the average cost of full coverage insurance with different insurers that provided quotes for vehicles from 2022 or earlier.
|
Insurance Company
|
Avg Monthly Quote
|
Avg Annual Quote
|
|---|---|---|
| Grange | $110 | $1,322 |
| New York Central Mutual | $191 | $2,294 |
| Nationwide | $191 | $2,295 |
| Travelers | $202 | $2,420 |
| Freedom | $207 | $2,480 |
| First American | $227 | $2,723 |
| Safeco | $229 | $2,751 |
| Clearcover | $232 | $2,779 |
| Mapfre | $239 | $2,863 |
| Mercury | $240 | $2,885 |
Other types of insurance you might need
Many insurers offer additional coverage options beyond full coverage. Here are some common offerings.
- Medical payments insurance (MedPay): This car insurance add-on covers various medical expenses for you and your passengers after an accident.
- Personal Injury Protection (PIP): PIP typically covers a wider range of medical expenses than MedPay and is required in some states. You typically can only buy one or the other.
- Roadside assistance: This coverage pays for towing services, lockouts, flat tires, gas delivery and more.
- Underinsured/uninsured motorist coverage (UM/UIM): This coverage protects your finances 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: This covers the difference between your car’s actual cash value and remaining loan amount at the time of a total loss. Not all used cars are eligible for gap insurance — some insurers require your vehicle to be less than three years old to qualify.
- Full glass coverage: This usually 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.
Average used car insurance costs
The average cost of liability-only insurance on a used car is x per month, according to Jerry’s quote data. The average cost of full coverage on a used car is x per month.
As your vehicle ages, it depreciates in value. While liability insurance costs don’t change much over time, full-coverage auto insurance rates tend to fluctuate as your vehicle ages and repair costs increase.
Here are the average rates on different vehicles that are from 2022 or earlier, according to Jerry’s quote data.
|
Car Make and Model
|
Avg Monthly Quote
|
Avg Annual Quote
|
|---|---|---|
| Suzuki Swift | $34 | $413 |
| Dodge Stealth | $38 | $457 |
| Dodge 400 | $43 | $514 |
| Plymouth Voyager | $47 | $566 |
| Bmw 645Ci | $49 | $583 |
| Mazda Navajo | $50 | $602 |
| Jeep Scrambler | $51 | $616 |
| Chevrolet El | $53 | $637 |
| Chevrolet V1500 | $54 | $643 |
| Volvo 244 | $54 | $646 |
FAQ
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Is insurance cheaper for used vehicles?
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Which factors affect the cost of insurance for a used car?
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How do I transfer insurance to a new used car?
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Why is used car insurance cheaper?
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Can you get gap insurance on a used car?
Megan Lee is an editor, writer, and SEO expert who specializes in insurance, personal finance, travel, and healthcare. She has been published in U.S. News & World Report, USA Today and elsewhere, and has spoken at conferences like that of NAFSA: Association of International Educators. Megan has built and directed remote content teams and editorial strategies for several websites, including NerdWallet. When she`s not crafting her next piece of content, Megan adventures around her Midwest home base where she likes to drink cortados, attend theme parties, ride her bike and cook Asian food.
Annie is a writer and editor at Jerry and has more than a decade of experience writing and editing digital content. Before joining Jerry, she was an assistant assigning editor at NerdWallet, where she covered loans. Previously, she worked at USAA and newspapers in Minnesota, North Dakota, California, and Texas. She holds a bachelor’s degree in journalism from the University of Minnesota.
