Used Car Insurance: Everything You Need to Know

Looking for the cheapest used car insurance rates? Learn how to buy coverage for a used car and the best way to get the most affordable used car insurance price.

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Car insurance is a requirement for drivers whether they buy a new or used car. Though you may save money buying a used car, insurance rates for used vehicles may not always be significantly cheaper — however, this can vary dramatically depending on your car’s make and model.

MoneyGeek compared used car insurance prices for the 10 best-selling used cars in 2020 to help you find the cheapest used car insurance rates.

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Key Takeaways

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While some used car models are much more affordable to insure than new models, the price difference in coverage between old and new model years for some vehicles is small.

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When comparing coverage and pricing for the cheapest used car insurance rates, we found GEICO and USAA have the best insurance prices.

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Drivers can save on car insurance for used cars by shopping around, considering coverage choices, asking about discounts and bundling home and auto insurance.

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Comparing the Cost of Used Car Insurance

Knowing the cost of used car insurance can be helpful when you’re trying to decide if you should buy a new or used car. Not all used cars are significantly less expensive to insure, and the cheapest used car insurance price may not be enough to justify buying a used car over a new car.

Insurance Costs for the Top-Selling Used Cars

Some of the top-selling used cars are significantly cheaper to insure than the average vehicle, while others are only slightly less expensive.

For example, it costs $1,609 to purchase full coverage insurance for a Dodge Ram 2500, while a model five years older costs $1,470 — that’s a difference of $139.

However, used car insurance rates for some models aren’t meaningfully lower for older models — take the example of the Ford F-150. A new model costs $1,269 to insure, but a five-year-old model only costs $1,227 — that’s a difference of just $42 for the same coverage.

Car Insurance Costs By Age for the 10 Best Selling Used Cars in 2020
Used Vehicle Type
Cost of Full Coverage Insurance When New
Cost of Full Coverage Insurance When Five Years Old
Cost of Full Coverage Insurance When 10 Years Old

Ford F-150

$1,269

$1,227

$1,048

Chevrolet Silverado

$1,323

$1,267

$1,077

Dodge Ram 2500

$1,609

$1,470

$1,260

Toyota Rav4

$1,266

$1,214

$1,074

Honda CR-V

$1,172

$1,116

$996

Toyota Camry

$1,414

$1,306

$1,103

Chevrolet Equinox

$1,267

$1,172

$1,057

Honda Civic

$1,414

$1,329

$1,225

Toyota Tacoma

$1,266

$1,208

$1,053

Nissan Rogue

$1,290

$1,209

$1,070

The Five Cheapest Used Cars to Insure

While some used cars are expensive to insure, some makes and models cost substantially less because of factors like mileage, cost to repair and safety features. We found that Subaru Forester, Honda CR-V and Jeep Patriot have the cheapest car insurance rates of all used vehicles.

MoneyGeek found the following five makes and models have the cheapest used car insurance price for full coverage.

Top Five Used Cars With the Lowest Insurance Costs
  • Vehicle Type
    Avg Cost to Insure
  • Nissan Frontier
    $937
  • Honda CR-V
    $900
  • Jeep Patriot
    $895
  • Honda Odyssey
    $928
  • Subaru Forester
    $907

Best Cheap Insurance for Used Cars

When buying car insurance for used cars, most people want to find the best company with the cheapest rates. Rates vary widely by provider — even for the same coverage — so it’s important to know which company offers the most affordable insurance for the vehicle you drive.

MoneyGeek compared the same coverage with multiple insurance companies for the top 10 most popular used cars and found that GEICO and USAA tend to offer the most affordable rates.

Cheapest Insurance Providers for Popular Used Cars
Used Vehicle Type
Cheapest Insurance Provider
Average Cost of Insurance Policy with This Insurer

Ford F-150

USAA

$1,041

Chevrolet Silverado

GEICO

$1,070

Dodge Ram 2500

GEICO

$1,206

Toyota Rav4

GEICO

$945

Honda CR-V

GEICO

$900

Toyota Camry

USAA

$1,070

Chevrolet Equinox

GEICO

$1,014

Honda Civic

USAA

$1,009

Toyota Tacoma

GEICO

$976

Nissan Rogue

GEICO

$969

Factors That Affect Used Car Insurance Costs

There are many factors used to determine used car insurance rates. Some are specific to your vehicle, its price, likelihood of being stolen and repair costs. Others are personal, like your driving record, coverage choices and zip code. The price of used cars has also been steadily increasing since 2015, which may mean full coverage is more expensive because of higher replacement costs.

Car Insurance Options for Used Cars

When you buy car insurance for a used car, you have options on what coverage you select. Some are required, like liability insurance, while others are optional. Consider these coverages and whether the protection they provide is worth the cost when shopping for used car insurance rates.

Common Car Insurance Coverages
  • TOO LONG
    What It Covers
  • Bodily Injury Liability
    Pays for the other party’s injuries when you cause an accident
  • Property Damage Liability
    Pays for the other party’s property damage (car, home, etc.) when you cause an accident
  • Collision and Comprehensive
    Provides physical damage coverage for your vehicle if it’s damaged in an accident
  • Gap Coverage
    Pays for the difference in a totaled car’s value and the remaining loan or lease balance

Body Injury Liability

Liability car insurance is required in nearly every state because it covers the other driver if you cause an accident. Bodily injury liability pays for the other driver and their passengers’ medical bills and lost wages if you cause injuries during an at-fault accident.

Property Damage Liability

Part of liability insurance, property damage liability pays to repair or replace another person’s property if you damage it in an accident. This property could be another person’s car or home, but it also covers damages to property owned by the government or a business building. Without this coverage, you may be personally responsible for paying for any property you damage when at fault in an accident.

Collision and Comprehensive Coverage

Comprehensive and collision insurance are optional coverages unless you have a used car loan and your lender requires them. When determining if you need physical damage coverage, consider the coverage cost and the value of the used car. For vehicles that hold their value over time — like trucks — it may be worth the extra cost to purchase full coverage used car insurance instead of liability only.

Gap Coverage

Another optional used car insurance coverage is gap insurance. This coverage is for used cars with a loan or lease and pays the difference between the car’s value and the loan balance if the vehicle is totaled. Lenders usually don’t require gap coverage, but it may be a good idea to buy it if your car is worth less than your loan balance before you pay it off.

How to Save on the Cost of Used Car Insurance

With these tips, you can reduce your insurance costs without having to give up coverage — especially if you want full coverage for your used car.

1

Make your coverage choices.

Decide if you want liability-only or full coverage for your used car before you start shopping.

2

Shop for used car insurance.

Compare quotes with the same coverages from multiple carriers to find the cheapest used car insurance rates.

3

Consider bundling.

Insuring your home and auto with the same carrier offers excellent savings with the bundling discount.

4

Ask about other discounts.

Get savings for being a good driver, not making claims, driving a safe car and other cost-saving measures.

5

Use tools to your advantage.

Compare quotes faster and easier using a price comparison tool to get the best used car insurance rates.

6

Increase your deductible.

Higher deductibles mean lower premiums, but be prepared to pay more if you file a claim.

7

Consider pay-per-mile car insurance.

If you don’t use your car much, consider purchasing a pay-per-mile policy, which only charges you for the miles you drive.

Methodology

MoneyGeek collected insurance rates from various carriers to calculate the price of full coverage insurance on the best-selling used vehicles of 2020. The base driver is a 40-year-old male with a full coverage policy with:

  • $100,000 in bodily injury liability insurance per person
  • $300,000 in bodily injury liability insurance per accident
  • $100,000 in property damage liability insurance per accident
  • Comprehensive and collision insurance with a $1,000 deductible

About the Author


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Mandy Sleight is a professional freelance writer and licensed insurance agent. She has her property, casualty, life, and health licenses and has been working in the industry since 2005. Mandy has worked for well-known insurance companies like State Farm and Nationwide Insurance, and most recently as the Operations Coordinator for a start-up employee benefits company.

Mandy earned her Bachelor of Science degree in Business Administration and Management from the University of Baltimore and her Master in Business Administration from Southern New Hampshire University. She uses her vast knowledge of the insurance industry and personal finance combined with her writing background to create easy-to-understand and engaging content to help readers make smarter choices with their budget and finances.


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