Car Insurance for Used Cars

Car insurance for used cars averages $124 to $150 per month. If you still have a loan on the car, your lender decides your coverage. If you own it, a simple test tells you when to drop full coverage.

Learn how much coverage you need and which models cost least to insure.

Written by Mark Fitzpatrick

Updated: June 3, 2026

Advertising & Editorial Disclosure

Key Takeaways

A 2017-2021 used car costs about $7/month less to fully insure than a new car. Real savings only appear on pre-2017 models.

If your paid-off used car is worth less than your annual full coverage premium times ten, you're likely paying more than you'd ever collect on a claim.

A car with a salvage or rebuilt title may be impossible to fully insure. Find out before you buy, not after.

How Much Car Insurance Do I Need for a Used Car?

If you're making loan payments on the car, full coverage is required until the loan is paid off. For a car you own free and clear, use the 10% test, look up the private-party sale value, then divide your annual full coverage premium by that number. If the result is above 0.10, you're paying more to insure the car than you'd ever collect on a claim.

A 2017-2021 car averages $216/month for full coverage. Keep it unless the car is worth less than $25,900. A 1999-2016 car averages $141/month, with a breakeven of $16,900. Most older cars are worth less than that, so drop full coverage.

A salvage-title car can't be insured at all. Meanwhile, a rebuilt-title car can be insured, but most insurance companies won't cover damage to it. Call at least two insurers before you sign the purchase paperwork.

How Much Does Car Insurance Cost for Used Cars?

Buying a used car saves you money on full coverage, not on liability. Minimum coverage costs about $73 to $74 a month regardless of vehicle age. A 2017-2021 used car averages $216/month for full coverage versus $223/month for a new 2025 model, a $7 difference. A 1999-2016 car averages $141/month for full coverage, $82/month less than new.

The car you pick matters as much as the year group. A 2021 Buick Encore costs $30/month for minimum coverage. A 2021 Dodge Challenger costs $207/month. Same model year, but $177 apart. The cheapest models across all makes are listed in the next section.

Model Year Group	Avg Monthly Min Coverage	Avg Monthly Full Coverage	Avg Overall Monthly
2025 (new)	$136	$266	$201
2017-2021 (recent used)	$102	$199	$150
1999-2016 (older used)	$84	$163	$124

Which Models Are Cheapest to Insure Used vs. New?

For common everyday cars, buying used instead of new can save $60 to $135 a month on insurance for the same model. The Hyundai Elantra has the biggest price difference: a used 2015–2019 Elantra averages $118/month. The 2025 model costs $253/month, $135 more per month or $1,620 per year. The Toyota Corolla and Honda Civic each save around $60/month.

Minimum liability costs roughly the same amount whether the car is new or 10 years old, about $73 to $74 a month. Drivers who plan to buy only minimum coverage won't save much on insurance by buying used.

Model	2025 Avg Monthly Rate	Used (2015-2019) Avg Monthly Rate	Monthly Savings
Hyundai Elantra	$253	$118	$135
Hyundai Sonata	$252	$121	$131
Toyota Corolla	$189	$123	$66
Honda Civic	$179	$120	$59
Subaru Outback	$151	$94	$57

Cheapest Used Cars to Insure

The 2021 Buick Encore is the cheapest 2017–2021 model to insure, at $30/month for minimum coverage and $58/month for full coverage. The table below ranks the cheapest 2017-2021 models by minimum coverage rate.

Model	Model Year	Avg Monthly Min Coverage	Avg Annual Min Coverage	Avg Monthly Full Coverage	Avg Annual Full Coverage
Buick Encore	2021	$30	$362	$58	$701
Buick Encore GX	2021	$33	$397	$64	$771
Fiat 500L	2020	$36	$436	$71	$850
Alfa Romeo Stelvio	2018	$38	$460	$75	$899
Alfa Romeo Stelvio	2019	$40	$481	$78	$940
Nissan NV200	2017	$42	$507	$82	$986
Fiat 500X	2020	$42	$509	$83	$991
Lincoln Aviator	2020	$44	$530	$87	$1,038
Kia Sedona	2017	$45	$535	$87	$1,041
Lincoln Aviator	2021	$50	$596	$97	$1,167
Land Rover Discovery	2021	$52	$625	$102	$1,228
Mazda MX-5 Miata	2021	$52	$622	$101	$1,210
Jeep Cherokee	2019	$54	$644	$104	$1,254
Cadillac Escalade ESV	2020	$54	$643	$105	$1,256
Land Rover Range Rover Evoque	2021	$58	$699	$114	$1,364
Genesis G80	2017	$60	$724	$118	$1,410
Smart Fortwo	2017	$66	$792	$128	$1,535
Ram 1500	2020	$70	$836	$136	$1,634

What Affects Car Insurance Rates on Used Vehicles?

Used car insurance rates depend on the same factors as new car insurance, but vehicle age and condition introduce variables that don't apply to new cars.

Model Year

Older cars are worth less, so it costs less to replace them, and that's why comprehensive and collision coverage costs less on older cars. A 2005 model costs less to insure than a 2020 model even with the same repair history.

Repair Costs by Make and Model

European luxury cars cost more to repair than American or Japanese ones because the parts are harder to find and certified mechanics charge more per hour. A 2015 BMW 3 Series costs more to insure than a 2015 Toyota Camry for that reason alone.

Driving Record

A single at-fault accident raises your rate by an average of 44% and stays on your driving history for three to five years. Some insurance companies count it for five years even where state law only requires three. Ask your insurance company how far back it looks before assuming an old accident is no longer affecting your rate.

Credit Score (Most States)

Insurance companies check your credit score when setting your rate. Lower credit scores predict more frequent claims, so insurers charge more. Good credit can cut your premium by 20% or more. California, Hawaii, Massachusetts and Michigan don't allow credit as a rating factor.

Coverage Level Choice

For cars worth less than $5,000, dropping collision and comprehensive often saves more than $400 per year. For 2017-2021 used cars worth $12,000 or more, full coverage almost always costs less per year than the money you'd lose if the car were totaled without it.

How to Lower Used Car Insurance Costs

The 2021 Buick Encore costs $30 per month for minimum coverage and $58 per month for full coverage, a $28 per month gap that reflects the coverage-level decision in practice.

1
Compare Quotes From Multiple Insurers
Among the eight largest insurance companies, the price difference for a 2017-2021 used car is $156/month, from $130/month at USAA (military members only) to $286/month at Farmers for the same coverage. If you haven't compared rates in more than two years, a cheaper option is likely available. MoneyGeek's cheapest car insurance page lists current rates by provider and can help you identify which companies to quote first.
2
Apply the 10% Test Before Your Next Renewal
Go to Kelley Blue Book and look up your car's private-party sale value. Divide your annual full coverage premium by that number. If the result is above 0.10, get a liability-only quote before your next renewal.
3
Maintain a Clean Driving Record
A single at-fault accident adds more to your annual insurance cost than most small claims pay out. For a minor accident, compare the likely three-year rate increase against the claim amount before you file. Small claims often cost more in higher premiums than they return.
4
Stack Available Discounts
Low-mileage and pay-in-full discounts apply to used cars the same as new ones. Adding a home or renters policy to the same insurance company earns another discount. Low-mileage discounts are the most frequently missed. Many insurance companies require you to report your annual mileage rather than applying the discount automatically.

Frequently Asked Questions About Car Insurance for Used Cars

Does used car insurance cost less than new car insurance?

Yes, but only on older models. A 2017-2021 used car costs only $7/month less than a new car for full coverage. A 1999-2016 car averages $141/month for full coverage, $82/month less than new. Minimum coverage costs about $73 to $74 a month regardless of vehicle age.

What type of insurance do I need for a used car?

All states except New Hampshire require liability insurance regardless of vehicle age. Full coverage is required if you're making loan payments on the car. For cars you own free and clear, if your annual full coverage premium is more than 10% of what the car would sell for today, drop to liability-only.

Should I get full coverage on a used car?

Keep full coverage when your annual premium is less than 10% of the car's value. For 2017-2021 cars averaging $216/month, keep it unless the car is worth less than $25,900. For 1999-2016 cars averaging $141/month, the breakeven is $16,900. Most older cars are worth less, so drop full coverage. Use Kelley Blue Book's private party value, not what you paid.

Does a used car's history affect insurance rates?

A salvage title means the car was declared a total loss and can't be insured. It's not legal to drive. A rebuilt title means it was repaired and passed a state inspection. Most insurance companies won't sell comprehensive or collision on a rebuilt-title car, and those that do charge 20% to 40% more. Confirm coverage availability before you buy.

Can I get insurance on a used car the same day I buy it?

Yes. Most insurance companies offer same-day coverage online or by phone. If you already have an active policy, it automatically covers a newly purchased car for a short time, but that period is anywhere from two days to 30 days depending on your insurer. No state requires insurers to offer a grace period. Call before you drive off the lot.

How do I find the cheapest insurance for an older used car?

Do the 10% test first. Go to Kelley Blue Book and get the private-party sale value for your car. Divide your annual full coverage premium by that number. If the result is above 0.10, switch to liability-only and compare quotes from at least four insurance companies.

MoneyGeek analyzed rates from Quadrant Information Services, which collects ZIP-code-level premiums from major insurers across the country. Rates reflect a 40-year-old male driver with a clean driving record, good credit, and both minimum coverage and full coverage tiers.

Year-group averages are derived from all mainstream makes and models in the database for each bracket, averaged across ZIP codes and providers, excluding exotic and ultra-luxury models. The cheapest models table reflects average rates across all available providers for each vehicle.

The used-vs.-new savings comparison uses average rates for 2015-2019 model years of each listed make and model compared to the 2025 model year equivalent. Individual rates will vary based on state, ZIP code and driver profile.

See our full auto methodology.

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he has produced original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.

He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.

Like all MoneyGeek analysts, he draws on independent cost and consumer experience data. No insurance company partnership influences his recommendations.

Fitzpatrick earned his degrees from Johns Hopkins University (M.A. Economics and International Relations) and Boston College (B.A.). He began his career in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.

Read Full Bio »

Sources

Cars.com. "Used-Car Prices Spiked 30% in Just One Year." Accessed September 2, 2021.