Buying a used car is a great way to save money on transportation, but long-term savings come from getting the right insurance. Here is your guide to saving cash with used car insurance.

Used Car Insurance 101

Used car insurance covers your non-brand-new vehicle. It protects you financially if the car is damaged, stolen, or involved in an accident. Of course, the specific coverage depends on your policy. If you don’t have coverage, you can be on the hook for damages to your vehicle or even get you in legal trouble.

The Cost of Used Car Insurance?

On average, used car insurance costs about $1,391 per year or $116 monthly. Rates can vary widely depending on a number of factors like your age, driving record, location, and the type of vehicle. Some of the most affordable used cars to insure are the Honda CR-V, Ford F-150, and Chevrolet Silverado 1500. The Nissan Altima, GMC Sierra 1500, and Honda Civic, on the other hand, tend to be more expensive to insure.

Finding the Cheapest Used Car Insurance

There are several effective strategies to get the lowest insurance rates on a used vehicle:

• Evaluate your coverage needs. If your used car has low value, dropping collision or comprehensive coverage can save you substantially.
• Increase your deductible. Opting for a higher deductible of $1,000 or more reduces your premiums.
• Seek available discounts. Savings like multi-policy, safe driver, and good student discounts can help lower your costs.
• For classics or antique cars, look into specialized insurers. They offer policies tailored for higher-value vintage vehicles.
• Compare quotes from multiple insurers. This ensures you find the best rates for your specific situation.

Top Used Car Insurers of 2023

The most affordable used car insurance companies include Erie, Travelers, Geico, USAA, and Progressive. Their average annual premiums are well below the $1,391 per year industry average. When searching for the best used car insurance, be sure to compare quotes from these top low-cost providers.

Types of Used Car Insurance Policies

Liability coverage is mandatory in most states, while collision, comprehensive, and other coverage types are optional add-ons. Evaluate your used car’s value and your finances to determine what policies make the most sense.

Full coverage bundles liability with collision and comprehensive. It tends to be recommended for financed used cars. Compare rates carefully, as full coverage costs substantially more than liability-only policies.

Gap insurance can also be beneficial on certain used car loans. It pays the difference between your loan balance and the car’s value if it is totaled. Gap insurance makes the most sense for lengthy loans and cars with faster depreciation rates.

Getting Insurance When Buying a Used Car

Shop for quotes before finalizing a used car purchase. You’ll need active insurance before driving off the lot. If adding a car to your policy, contact your insurer ahead of time to arrange coverage. Some providers automatically cover new vehicles for 30 days, but confirm specifics with your insurance company. Comparing rates from multiple insurers ensures you get the best deal and can hit the road with peace of mind.