Best Auto Insurance for Used Cars in 2024 (Find the Top 10 Companies Here!)

The best auto insurance for used cars comes from State Farm, USAA, and Progressive, known for their comprehensive coverage options and dependable service.

These providers cater to a range of drivers, ensuring that coverage is both accessible and tailored to the specific needs of used car owners. See more details in our guide titled “Types of Auto Insurance.”

Our Top 10 Company Picks: Best Auto Insurance for Used Cars

Opting for insurance from these companies means embracing a blend of affordability, reliability, and customer satisfaction. Each offers unique benefits that can suit various preferences and requirements, making them top choices for securing your used vehicle.

If you’re looking to lower your auto insurance premiums, enter your ZIP code into our free quote comparison tool above to compare your rates against the top insurers.

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#1 – State Farm: Top Overall Pick

Pros

• Bundling Policies: State Farm offers significant discounts for bundling multiple insurance policies.
• High Low-Mileage Discount: State Farm provides a substantial discount for low-mileage usage.
• Wide Coverage: State Farm offers various options tailored to business needs. Discover insights in our guide titled State Farm auto insurance review.

Cons

• Limited Multi-Policy Discount: State Farm’s multi-policy discount is not as high as some competitors.
• Premium Costs: Despite discounts, State Farm’s premiums might still be relatively higher for certain coverage levels.

#2 – USAA: Best for Affordable Rates

Pros

• Military and Family Focus: USAA provides exclusive services and discounts for military members and their families.
• High Customer Satisfaction: Known for exceptional customer service and satisfaction rates. Unlock details in our guide titled USAA auto insurance review.
• Comprehensive Coverage Options: Offers a range of coverage that can be customized to suit individual needs.

Cons

• Limited Availability: USAA services are only available to military members, veterans, and their families.
• Fewer Physical Locations: Primarily operates online with limited physical branches, which might be a drawback for some customers.

#3 – Progressive: Best for Coverage Options

Pros

• Customizable Policies: Progressive allows customers to tailor their policies with various add-ons and adjustments.
• Loyalty Rewards: Offers perks and discounts for long-term customers. Delve into our evaluation of Progressive auto insurance review.
• Competitive Usage-Based Programs: Progressive’s Snapshot program can lead to significant savings for safe drivers.

Cons

• Variable Customer Service: Customer service quality can vary widely depending on the region and specific agents.
• Higher Rates for High-Risk Drivers: Progressive might charge significantly higher premiums for drivers with poor driving records.

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#4 – Allstate: Best for Safe-Driving Discounts

Pros

• Drivewise Program: Offers discounts for safe driving through their Drivewise telematics program.
• Multiple Discount Options: Provides various discounts including multi-policy, new car, and anti-theft system discounts.
• Personalized Agent Network: A wide network of agents provides personalized service. Access comprehensive insights into our guide titled Allstate auto insurance review.

Cons

• Higher Base Rates: Generally, Allstate’s premiums are higher than some competitors before applying discounts.
• Mixed Customer Service Reviews: Service satisfaction can vary significantly depending on the local agent.

#5 – Liberty Mutual: Best for Online Tools

Pros

• Extensive Online Resources: Liberty Mutual offers robust online tools for managing policies, filing claims, and obtaining quotes. Discover more about offerings in our complete Liberty Mutual auto insurance review.
• Customizable Coverage: Wide array of optional coverages and endorsements to fit diverse needs.
• Accident Forgiveness: Offers accident forgiveness policies, preventing your rate from increasing after your first accident.

Cons

• Higher Premiums for Certain Demographics: Some users report higher rates compared to other insurers.
• Variable Claims Satisfaction: Some customers report dissatisfaction with the claims process.

#6 – Nationwide: Best for Vanishing Deductible

Pros

• Vanishing Deductible: Nationwide rewards safe driving by reducing the deductible for each year of safe driving.
• Wide Range of Discounts: Offers discounts for bundling, anti-theft devices, and more. Read up on the Nationwide auto insurance review for more information.
• Flexible Policies: Provides flexibility in policy customization to meet different customer needs.

Cons

• Average Customer Reviews: Some policyholders report average or below-average satisfaction with customer service.
• Policy Costs Can Be High: Initial policy rates can be higher than some competitors, depending on the coverage.

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#7 – Farmers: Best for Multi-Policies Discount

Pros

• Extensive Policy Options: Offers a variety of coverage options and specialized policies for different types of drivers.
• Discounts for Multiple Policies: Significant savings are available for customers who bundle multiple types of insurance.
• Dedicated Agents: Provides personalized service through a network of local agents. More information is available about this provider in our Farmers auto insurance review.

Cons

• Costlier Premiums: Premiums can be higher than average, particularly without discounts.
• Complex Policy Offerings: Some customers may find the range of options and policies confusing.

#8 – Travelers: Best for Safe Drivers

Pros

• IntelliDrive Program: Travelers’ usage-based program rewards safe driving habits with lower rates.
• High Coverage Limits: Offers high coverage limits and extensive options for customization. See more details in our guide titled Travelers auto insurance review.
• Discounts for Multiple Policies: Provides various bundling options that can lead to significant savings.

Cons

• Inconsistent Customer Service: Customer service quality can be inconsistent across different regions.
• Policy Pricing Variability: Some customers report variability in policy pricing and renewal rates.

#9 – The Hartford: Best for Accident Forgiveness

Pros

• Tailored to Older Drivers: Offers specialized services and discounts for drivers over 50, including AARP members.
• Lifetime Renewability: Provides a lifetime renewability option which is a unique offering in the industry. Learn more in our complete The Hartford auto insurance review.
• Accident Forgiveness: Policies include benefits like accident forgiveness to prevent premium spikes after a first accident.

Cons

• Niche Market Focus: Primarily focuses on older drivers, which might not appeal to younger demographics.
• Higher Costs Without AARP Membership: Non-AARP members may face higher rates.

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#10 – Geico: Best for Online Management

Pros

• Competitive Pricing: Known for offering some of the most competitive rates in the industry.
• Extensive Online and Mobile Tools: Provides a highly efficient online portal and mobile app for managing policies and filing claims. Learn more by reading our guide titled Geico auto insurance review.
• Wide Range of Discounts: Offers a broad array of discounts, including for safe driving, military service, and more.

Cons

• Varied Customer Service Experience: Some customers report less satisfactory interactions with customer service.
• Claims Process Issues: Some policyholders have expressed concerns over the claims process and settlement times.

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. Learn more in our complete “Best Auto Insurance by Vehicle Type.”

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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 (read our “Cheapest Liability-Only Auto Insurance” for more information), while several others include uninsured motorists 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.

Cheapest Auto Insurance Providers by State

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 auto 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. For additional details, explore our comprehensive resource titled “What is the average auto insurance cost per month?“

How Long Do You Have to Buy Car Insurance

Although all companies have their 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 (read our “Best Auto Insurance Companies for Classic Cars” for more information) 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. See more details in our guide titled “Factors That Affect Auto Insurance Rates.”

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.

To find out if you can get cheaper auto insurance rates, enter your ZIP code into our free quote tool below to instantly compare prices from various companies near you.

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