PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Is it normal for monthly car insurance to cost more than the monthly loan payment?
I'm 22 and I want to buy a new car with a loan. But when I get quotes, the insurance is actually more than the loan payment. I also have a car my parents gave me that's paid off. I was thinking of trading this in, but now I'm not so sure.
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“It’s common for younger drivers who finance a new car to pay more for insurance than for the monthly car loan. That’s because you’re considered high-risk (even with no accidents), and you have to have full coverage for a financed car.
In all honesty, you should just keep the car you have now. It’s paid off and you only need to have
liability coverage
on it. Put the money you’d pay for the new car (both the loan and the insurance) in a savings account and drive your current car until it starts to break down.You just might find that you have a big chunk of change for a new car in a few years.
“
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
