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Updated
Used car insurance rates tend to be less than premiums of newer comparable model years. You might even be able to lower your premium even more by reducing coverage. Just be sure to keep enough coverage so you’re not left financially stranded after an accident.
Your used car needs basic protection to get you on the road. You may need:
Helpful for medical bills and income loss for accident-related injuries. May be a legal requirement in some states. Not always needed if you and your regular passengers have good health insurance.
No, used cars have the same legal requirements as other cars on the road. Those requirements include liability and may also include uninsured and underinsured motorist or personal injury protection coverage in some states.
However, your used car could qualify for a classic or antique policy if it meets the requirements. These policies often require garage storage and low mileage, but some insurers allow daily driving. Classic car insurance typically costs less than regular car insurance.
Used cars may need additional protection to help you avoid paying for unwanted expenses. Consider these coverage types:
The average car insurance rate is $1,300 per year, and rates for used cars tend to stay around this price.
However, your used car may cost less than average, depending on its exact age and make. For example, a 2007 minivan may only cost around $930 per year to insure, while a 2017 model costs $1,100 per year.
Used cars will be more expensive to insure if they have a high MSRP, are equipped with fewer modern safety features, have high theft rates or require specialty parts, among other factors.
Model year | Make and model | Average monthly premium |
2017 | Chrysler Pacifica | $132 |
2017 | Honda Odyssey | $132 |
2017 | Toyota Tundra | $135 |
2017 | Honda Pilot | $137 |
2017 | Subaru Outback | $139 |
2017 | Subaru Forester | $141 |
2017 | Toyota Tacoma | $142 |
2017 | Subaru WRX | $144 |
2017 | Honda Fit | $145 |
2017 | Volkswagen Golf R | $145 |
Typically, yes. A lightly used car with a solid safety rating will likely be less to insure than a new car.
The difference in the cost to repair and replace a used car versus a new is what makes the difference in insurance rates. Since the potential payout for repair or replacement of a new car is typically significantly higher, even safety technology discounts don’t typically drop the rate lower than a used model.
In some cases you may pay a high premium for your used car if it’s a high-quality make and model. In this case, there are still several ways to save money:
Roslyn McKenna
Car insurance Publisher
I used to drive a 2002 Jeep Liberty as my daily commuter car. In 2014, I checked KBB and found my car was only worth about $3,000, but my insurance was costing me about $1,000 a year. I was definitely overinsuring my car.
I wanted to save on insurance so I could save up for a new car. I decided to switch to a bare-bones policy just above the state minimums. I removed comprehensive and collision coverage and switched to a $1,000 deductible. You can’t usually get roadside assistance without comprehensive coverage, so I got a AAA membership since my aging car was becoming less and less reliable.
By cutting coverage I didn’t need anymore, I saved about $400 and cut my annual insurance premium to $600.
Getting auto insurance on a used car works the same as with a new car. However, some insurers exclude older car models in the online quoting process. You may need to call about getting a policy in this case.
Steps to apply for car insurance:
Used cars do have a few caveats for getting the right amount of insurance, including:
Used cars have similar insurance needs as other cars but often cost less to insure. To save more, consider multiple discounts, lower coverage on a less-valuable car or looking into classic car insurance.
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