Insuring a Used Vehicle: The Best Companies for 2023

When you’re looking for the best car insurance companies for a used vehicle, you may be unsure. However, when you compare car insurance companies, you’re bound to find a policy and price that works for you.

If you’re looking for rates for the best car insurance companies for a used vehicle, enter your ZIP code into our free quote tool.

What are the 10 best insurance companies for used cars?

The top 10 auto insurance companies in the USA for used cars list likely contains some names that you’ve heard before. Some might even be the best insurance companies for home and auto if you’d like to bundle and save.

• State Farm
• USAA
• GEICO
• Progressive
• Allstate
• Farmers
• Liberty Mutual
• Nationwide
• Travelers
• American Family

Each insurer will offer different discounts and savings, so it’s worth considering your options before diving head first into a random policy. For instance, USAA auto insurance is one of the best, but is only available to active military, veterans, and their immediate family members.

State Farm car insurance, on the other hand, will be slightly more expensive, but there are options to save by bundling multiple types of coverage, plus additional discounts. So when comparing the best insurance companies as non-military, State Farm isn’t a wrong choice.

How much does used-car insurance cost?

According to Nerd Wallet, the average cost of car insurance in the United States in 2021 was $1,592 or $133 per moth. This average is for a driver with a clean driving record and good credit. Any tickets or accidents on your record, or bad credit, would make this cost higher.

This is a rough estimation that contains comprehensive insurance policies and just liability. Many things will impact your car insurance policy’s price, everything from your type of car to where you drive it each day.

What affects car insurance rates?

When a car insurance company is examining your insurance policy to determine your cost, it will subject you to a process called underwriting. All insurers use this standard industry practice to determine how much you’ll have to pay based on risk.

Because your insurer is a private business, it will want to make money on your policy. This means that the insurer will evaluate your risk to determine its likelihood of paying out on the policy.

If there’s too high a chance the insurer will lose money due to your risk, you may find that your car insurance company denies you a policy. On the other hand, if the insurer sees no profit in insuring you, you’d be hard put to get a policy from it.

What will an insurer look at during underwriting?

As previously mentioned, your insurer will evaluate your risk to determine how likely it will be that you’ll file a claim. To get better rates, you should lower your risk in the areas an insurer will consider during the underwriting process.

When your insurance company underwrites your used car, they’ll consider areas such as:

• Driving history
• Credit history
• Criminal history
• How you’ll use the vehicle

Each insurer will decide how extensive the underwriting process will be. Many insurers have moved to automatic underwriting. If you apply for an auto insurance policy online, you may never have to talk with an agent. This also means you can’t plead innocent on any red flags.

Some actions will make it harder to get cheaper car insurance or any policy at all. Some of the highest risk activities that will make it harder to get car insurance include:

• Driving under the influence (DUI) charges
• Totaling a vehicle
• Multiple claims in a short period

The best move for anyone looking for affordable used-car insurance would be to lower the amount of risk you pose. If you currently have any high-risk activities on your record, it may take time and good behavior to get back to more affordable car insurance rates.

How can I lower my risk on car insurance?

If you’re hoping to lower your car insurance rates, you should consider taking a retrospective look at the past few years of your life. Your insurer will only consider most things that took place in the previous three to five years, forgiving anything that happened before that time.

If there are any high-risk activities on your driving record, you should wait until those notices expire. However, if you need car insurance as soon as possible, do some of the following things:

• Compare Insurers – Insurers are constantly competing with one another, so find out if any insurers will offer you a better price.
• Raise the Deductible – By increasing what you pay after the accident, and therefore decreasing what the insurance pays, you can lower your monthly premiums.
• Bundle Insurance Products – Insurers will provide unique discounts if you purchase multiple policy types from the same company.
• Low Mileage Discount – If you don’t drive much, you could consider looking for an insurance company that gives cheaper rates to people who rarely drive their car.

Other options include other occupational and social club discounts on some policies. In addition, group car insurance, which will underwrite your policy with your workplace as a whole, will often cost cheaper than traditional car insurance for high-risk drivers.

Are older used cars cheaper to insure than newer cars?

Buying an older used car can help you save from buying something costly, but does it cost less to insure? Well, it turns out that older cars are cheaper to insure as a general rule, especially when it comes to collision and comprehensive coverage.

As soon as a car leaves the sales lot, it starts to depreciate, meaning it loses value over time. Since the insurer places a lot of weight on your vehicle’s overall value, having a less-valuable car will look better to the company.

Furthermore, some other tips to keep in mind when insuring a used car include:

• Comprehensive and collision may not be worth the additional premium cost
• Make and model are more important than age
• If it has parts that are harder to find, it could raise rates

Most of the issues that could arise from insuring a used car include being unable to repair or replace the vehicle. In addition, if your car has a higher chance of being stolen, even despite its age, you’ll have to pay more to cover that risk.

Eventually, you may pay so much into the car insurance policy that you’ll make less back if your car is totaled. In these scenarios, it’s recommended that you forego the comprehensive coverage that would otherwise pay for the damages or destroyed vehicle.

What policy types are best for used cars?

If you have a used car, you still need an active insurance policy and registration to drive it on the road. It’s just wise not to pay too much for auto insurance on a vehicle that may cost more to repair or replace than the insurance would cost each month.

A few car insurance policies might be more attractive to insure a used car. These car insurance policies for used vehicles include:

• Liability – This policy is required to drive on any road, but more coverage can help you if someone is injured in an accident.
• Custom Parts – If you have any aftermarket parts on your used vehicle, custom-parts coverage is usually affordable enough to warrant the additional cost.
• Low Mileage – Some insurers will offer low-mileage programs for drivers who don’t use their vehicles much.

Because you’ll be relying on this policy during an accident, it is worth considering all your options to make sure you get the most out of your policy.

What’s the difference between liability and comprehensive auto insurance?

The difference between liability and comprehensive coverage comes down to what is covered. These are two different policy types widely found at car insurance companies that vary in price.

Liability insurance is meant to cover instances when you are in an accident, and someone else is injured. Your liability coverage can help pay for their medical bills and any legal costs that happen due to the accident. In addition, liability insurance is required in nearly every state.

A comprehensive car insurance plan, on the other hand, isn’t required and acts as protection for your car. Comprehensive coverage is meant to protect your vehicle from theft, weather damage, vandalism, and some other no-fault accidents that happen when your vehicle is parked.

What’s the easiest way to get car insurance on a used car?

If you’re looking for an insurance company that values you, consider many options and do your research ahead of time. Then, when you’ve found an insurer that you like, there are a few ways that you can apply for a new policy.

Some of the easiest ways to apply for a new auto insurance policy include:

• Calling the insurer’s number listed online
• Using an online quote tool or customer portal
• Visiting the insurer at the listed address

If you’re not worried about the specificities of your insurance and don’t have any questions, a simple phone call or online service might be best suited for you.

How can I tell if an insurer is any good?

Since you’ll be placing a lot of trust in the insurance company, it makes sense that you would want to ensure that it’s a quality business. Several professional-rating services have dedicated themselves to keeping an eye on the private industry.

Some of these insurer rating services focus on creditworthiness and financial status, while others are more concerned with the customers’ opinions. Each has its benefits, and we’ll cover what to look for when dealing with one of these rating agencies.

What professional rating services look at insurers?

Several financial rating services provide oversight to the insurance industry. These oversight companies look at an insurer’s assets and other public records to understand how it meets its financial obligation.

Some of the more significant rating services will also judge a customer’s risk when signing up for a policy with that insurer.

A few of the rating services that judge an insurer’s financial worthiness include:

• Moody’s
• Standard & Poor’s
• A.M. Best

These companies have been in the business for many years and are dedicated to helping customers make smart financial decisions regarding insurance.

What are the best car insurance consumer reports?

If you’re more worried about your personal experience with the insurance company, there are services for that as well. To maintain goodwill with the public, a business must treat its customers with respect and dignity. Some businesses have become great hotspots for receiving customer feedback.

You can find some of these car insurance consumer reports through the Better Business Bureau, which evaluates a business for customers. Not only does it have its rating system, but it also has a place for customer feedback. Finally, you can check all current and past claims to evaluate your risk.

J.D. Power is also a great tool to understand how customers feel about insurers. J.D. Power conducts surveys from current customers of that business and then posts the scores each insurer received in various categories that are important to potential customers.

Best Used Car Insurance: The Bottom Line

If you want to find the best used-car insurance, you’ll likely have your choice among the variety of policies available. Whether you need simple liability or something more comprehensive, you’ll be able to find a policy.

If you’re looking for quotes for the best car insurance companies for a used vehicle, enter your ZIP code into our free quote tool.