Used Car Insurance: Everything You Need to Know


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ByMandy Sleight
ByMandy Sleight

Updated: May 20, 2024

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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.

Table of Contents
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 bundling home and auto insurance, maximizing discounts, and shopping around.

Why Trust MoneyGeek? MoneyGeek collected insurance rates from various carriers to calculate the price of full coverage insurance on the best-selling used vehicles.

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 may not be enough to justify buying a used car over a new car.

Insurance Costs of the Top-Selling Used Cars

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

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

On the other hand, a new Ford F-150 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 Best Selling Used Cars
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 five 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

Jeep Patriot

$895

Honda CR-V

$900

Subaru Forester

$907

Honda Odyssey

$928

Nissan Frontier

$937

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 checked the coverage for the 10 most popular used cars from different insurance companies 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

Car Insurance Options for Used Cars

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

Common Car Insurance Coverages
Type of Coverage
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.

Whether you need gap insurance on a used car depends on your lender, loan term and the size of your down payment. Gap insurance can protect you financially because the longer you pay off your loan, or the larger your balance, the higher the risk that you’ll be paying a loan far higher than your car is worth.

If by chance your lender requires gap insurance, you won’t have a choice but to get the coverage. 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.

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, repair costs and the likelihood of it being stolen. 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.

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
Review your coverage choices.

Evaluate your coverage options and think about what you really need. If your car is fully paid off, consider downgrading from full coverage. If you’re driving an older vehicle, review whether the value of your car is worth the price of insurance.

2
Increase your deductible.

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

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
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.

6
Use tools to your advantage.

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

7
Shop for used car insurance.

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

Frequently Asked Questions

Is it cheaper to insure a used car than a new car?
Do I need insurance for my used car?
Is liability-only coverage enough for my used car?
What used cars are the cheapest to insure?

About Mandy Sleight


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Mandy Sleight is a licensed property, casualty, life and health insurance agent with 20 years of experience in the industry. She has worked for major insurance companies like State Farm and Nationwide, and most recently as the Operations Coordinator for a startup employee benefits company.

Sleight holds a business administration and management degree from the University of Baltimore and a master's in business administration from Southern New Hampshire University. She uses her vast knowledge of insurance and personal finance to create easy-to-understand and engaging content to help readers make smarter choices with their budgets and finances.


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