Cheap Used Car Insurance
Maximizing coverage without breaking the bank
A Great Way to Get a Good Vehicle
Purchasing a used car can be a great way to get a good vehicle while saving you a lot of money compared to buying a new vehicle. However, insuring a used car presents some unique considerations you should think about.
Getting the right coverage at a low rate takes some research and planning. Here are quotes from top insurers, lists of the cheapest and most expensive used cars to insure, and tips for maximizing savings on your used car policy.
Consider Your Coverage Needs
Legally, you need to have liability coverage which pays for damage and injuries you cause to others. But you may need more coverage, even for a used car. Collision and comprehensive coverage pay for damage to your own car from collisions and non-collision events like theft or vandalism.
Make sure you get coverage amounts that adequately cover the car’s current value, in the case you total it.
Tips For Getting Cheaper Used Car Insurance
You should always thoroughly inspect any used vehicle you are considering buying. Paying a certified mechanic $100 to come out and check out the car is a smart investment.
Insurers will want to know about any existing damage or mechanical issues. Be upfront about the car’s condition and provide photos if requested. Undisclosed problems could void your coverage later. A pre-purchase inspection from a mechanic can identify issues to address.
Check the Vehicle History Report
Insurers often review a car’s vehicle history report to spot red flags like previous accidents, flood damage, or odometer rollbacks. Be ready to explain any issues that come up or provide documentation to prove they’ve been repaired properly. A clean report can help you get more favorable rates.
Maintain Good Driving Habits
Your driving record impacts premiums significantly. Avoid accidents, traffic violations, DUIs, and other infractions. Install telematics apps or devices if your insurer offers discounts for safe driving habits. Taking defensive driving courses can also lower rates if you have a used car or a new one.
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Raise Your Deductibles
Opting for higher deductibles (the amount you pay out-of-pocket before insurance kicks in) reduces premiums substantially. Make sure you have savings to cover the deductible if you have a claim. A $1,000 deductible can mean 25% lower premiums versus a $500 deductible.
Get Every Discount You Can
There are many ways to get discounts on used car insurance. Multi-policy and multi-car discounts apply if you insure your home or other cars with the same provider. Others include good student, teacher, military, or veteran, anti-theft devices, and low mileage discounts. Ask your insurer what discounts can benefit you.
Consider Usage-Based Coverage
Pay-per-mile plans charge rates based on actual mileage driven instead of a fixed premium. This can save money for low-mileage drivers. But check if there are caps on miles driven to avoid extra fees. Pay-how-you-drive programs adjust premiums based on safe driving habits monitored by a device.
Drop Unnecessary Add-Ons
Newer used cars likely don’t need some add-ons like rental reimbursement or roadside assistance coverage – their warranties include those benefits. And older used cars don’t need add-ons like new car replacement coverage. Removing unneeded add-ons can reduce the premium.
Boost Your Credit Score Over 650
Insurers often check credit when pricing used car policies. Maintaining excellent credit can help secure lower rates. Check your credit reports for errors that could be lowering your scores. Pay bills on time and reduce debts to improve your credit profile over time.
10 Used Cars with the Cheapest Auto Insurance Rates
Some used vehicles are much cheaper to insure than others. Here are the top 10 used cars that typically have the lowest auto insurance rates:
- Chrysler Voyager
- Toyota Camry
- Subaru Outback
- Toyota Prius
- Dodge Caravan
- Toyota Corolla
- Honda Odyssey
- Hyundai Elantra
- Kia Optima
- Nissan Altima
The most affordable vehicles to insure are family sedans and vans. Other practical cars that get good gas mileage and high safety ratings are also cheap to insure. Expensive import vehicles and luxury brands like BMW and Mercedes often have higher insurance costs.
10 Used Cars with the Most Expensive Auto Insurance Rates
On the other end of the spectrum, here are 10 used vehicles that tend to have the highest insurance rates:
- Mercedes S Class
- BMW 7 Series
- Land Rover Range
- Rover
- BMW 5 Series
- Audi R8
- Jaguar XJ and F-ype
- Porsche 911
- BMW 3 Series
- Mercedes C Class
- Audi A6
As you can see, luxury cars, sports cars, SUVs, and imports from brands like Mercedes, BMW, Land Rover, Jaguar, Porsche, and Audi have the most expensive insurance premiums. The repair costs are much higher and accident rates may be increased as well. In addition, the replacement cost for these types of vehicles is very high, thus the premiums are significantly higher.
The Final Word on Cheap Used Car Insurance
Finding cheap used car insurance requires weighing many factors. Taking the time to shop around and review ten quotes or more can help you find a much lower rate for the coverage you need.
With the right insurer and policy limits, you can get cheaper coverage that fits your budget and adequately protects you. To compare used car insurance where you live, enter your zip code and fill out an online application. Save more on used vehicle insurance with direct rates.
Author: David Haan
David Haan is a professional writer who has a passion for writing about financial topics: including investing, insurance, and entrepreneurship. David has a way of simplifying complex financial topics to make it easy for anyone to understand. During his free time, he likes to play volleyball, surf, and listen to jazz music.