Last Updated on December 27, 2025

Buying a pre-owned vehicle and insuring it isn’t always the same as driving off the lot with a brand-new car.

Insurers don’t sell a special “used car insurance” product. Instead, your price is driven by your vehicle’s value, repair costs, safety tech, theft risk, where you live, your driving history, and how much coverage you buy. Before you sign paperwork, it’s smart to estimate what it will cost to insure a used car—because insurance can change your true monthly budget more than you’d expect.

Below is a practical guide to (1) how much coverage a used car needs, (2) what coverages matter most, (3) how a car’s history can affect insurability, and (4) proven ways to lower your premium.

Key Takeaways

• Used cars don’t require a special kind of “used car insurance”—you generally choose the same coverages as any other vehicle, but the car’s value and repair costs can change the price.
• If you have a loan, your lender will usually require “full coverage” (typically comprehensive + collision), even on an older used car.
• A vehicle’s history matters: prior total-loss or salvage/rebuilt titles can limit your coverage options or increase premiums.
• To save money, compare quotes, ask about discounts, consider a higher deductible (if you have savings), and make sure you’re not over-insuring a car you could replace out of pocket.

How Much Coverage Does a Used Car Need?

The amount of coverage you need for a used car usually comes down to two things:

• Your state minimums
• Your contractual obligations (from your lender or bank)

You can’t ignore state minimum insurance requirements. If you do, you could face fines, license suspension, vehicle impoundment, and other penalties. Start by confirming your state’s required limits and what counts as minimum coverage.

Next: check your financing terms. If you financed your vehicle, your lender typically requires “full coverage,” which usually means carrying both comprehensive and collision (plus liability). If you drop required coverage, the lender can buy coverage for you (force-placed insurance) and bill you—often at a much higher cost.

If you paid cash and own the car outright, you have more flexibility. You still must meet state minimums, but you can decide whether comprehensive and collision are worth it based on your car’s value and what you can afford to pay out of pocket if something happens.

The Various Types of Coverage to Consider for a Used Car

When budgeting for insurance, it helps to understand what each coverage actually does. These are the most common coverages that impact used-car insurance costs:

Liability Coverage

Liability is what pays for injuries and damage you cause to others. It typically includes property damage and bodily injury liability. Your state sets minimum limits, but minimums can be dangerously low—meaning you could still owe a lot out of pocket if you cause a serious crash.

Collision Coverage

Collision coverage helps pay to repair or replace your car after a crash (even if you hit a fixed object). If your used car is totaled, collision coverage generally pays the vehicle’s actual cash value (minus your deductible). If you have a loan, collision is usually required.

Comprehensive Coverage

Comprehensive coverage pays for non-collision damage—like theft, vandalism, fire, hail, flooding, and falling objects. It’s optional if you own your car outright, but it can be valuable in areas with higher theft or weather risk.

Personal Injury Protection

Personal Injury Protection (PIP) can help cover medical bills (and sometimes lost wages) for you and your passengers, regardless of who caused the accident. PIP rules vary by state, and not every state offers or requires it.

Uninsured and Underinsured Motorist Coverage

Uninsured and underinsured motorist coverage can help protect you if the other driver has no insurance (or not enough) to cover your injuries and damages. Requirements vary by state, but it’s often a smart add-on—especially if you live in an area with many uninsured drivers.

Do Not Ignore the Car’s History

Before you buy a used car, get its history and title status. Two red flags that can make insurance harder (or more expensive) are:

• A prior total loss
• A rebuilt or salvage title

If the vehicle was previously totaled or branded as salvage, some insurers may only offer limited coverage (often liability-only), require an inspection, or charge more due to uncertainty around repairs and parts quality.

Quick tip: Ask the seller for the VIN before you buy so you can (1) run a history report and (2) get insurance quotes for that exact vehicle. You can also check the VIN for theft/salvage red flags using NICB’s free VINCheck tool: NICB VINCheck®.

How Much Does It Cost to Insure a Used Car?

There’s no one-size-fits-all price because every insurer rates differently. But in general, used cars can be cheaper to insure than new cars because they usually cost less to repair or replace. That said, a “used” luxury vehicle (or a model with expensive parts or high theft rates) can still be costly.

Sample Rates by Company for a New vs. Used Version of the Same Car

The table below uses a sample comparison from The Zebra for a newer Honda Accord vs an older Honda Accord. The key takeaway: rates often drop as a vehicle ages—but not for every insurer or every model year. Treat these as a pricing example, not a guaranteed quote.

Source: The Zebra (new vs. used car insurance comparison; premiums shown are monthly in their example and converted here to 6-month estimates for easier comparison). View the methodology and sample profile.

What Are the Cheapest and Most Expensive Used Cars to Insure?

If you’re shopping used, remember: your insurer prices the risk of the vehicle you drive—not what you paid for it. That’s why some models tend to stay relatively cheap (or expensive) to insure whether you buy them new or pre-owned.

Here are examples of models that tend to be cheaper to insure, based on Bankrate’s sample driver profile research (shown as annual averages with an estimated 6-month equivalent):

And here are examples of models that tend to be more expensive to insure, even if you buy them used (Bankrate sample profile):

Source: Bankrate vehicle insurance cost research (rates refreshed as of Nov 2025 for their cheapest list; June 2025 sample rates for their most expensive list). These are sample rates for comparative purposes only; your quotes will differ. Cheapest cars list and most expensive cars list.

When Is It Smart to Drop Comprehensive or Collision on an Older Used Car?

If your used car is paid off, you may be able to save by dropping comprehensive and/or collision—but only if you could comfortably replace or repair the car without relying on insurance.

A simple way to think about it is: compare what you’re paying each year for comprehensive + collision (plus your deductible) to what the car is worth. If your premium savings over time wouldn’t meaningfully help you replace the car, it may be better to keep coverage—especially if you live in an area with a lot of theft, hail, or flooding.

Tips for Saving on Your Used Car Insurance Premiums

Once you know what coverage your used car needs, the next step is lowering your premium without leaving yourself underprotected.

Some of the best ways to save include:

• Know how the car you choose affects insurance. Not every used car is cheap to insure. Even among common sedans, pricing can vary—see our comparison on whether it’s cheaper to insure a Toyota Camry or a Honda Accord.
• Compare replacement value vs. premium cost. If your used car is worth $6,000 and you’re spending a large chunk of that each year on full coverage, reconsider whether collision/comprehensive makes sense (assuming you’re not required to carry it). If you want extra protection on a newer vehicle, look into options like new car replacement insurance (availability varies).
• Unlock discounts. Ask your insurer what discounts you qualify for—many offer savings for things like military service, safety features, paperless billing, and bundling auto and home/renters.
• Protect your driving record. Tickets and accidents raise rates. If you already have a violation, you’ll want to shop carefully—start with strategies for finding cheap quotes after a speeding ticket.
• Think about theft risk. Some models are popular targets for thieves, which can increase comprehensive premiums. If you’re comparing common commuter cars, see our notes on whether a Honda Civic or Toyota Corolla is cheaper to insure.
• Consider raising your deductible. If you have emergency savings, increasing your deductible can lower your premium. Here’s how to raise your deductible to save on car insurance.
• Pay in full if you can. Many insurers discount policies paid upfront (instead of monthly). Even if you can’t pay annually, paying in larger chunks (semi-annually) may help reduce fees.

FAQs on Insuring a Used Car

Final Thoughts

Insuring a used car is about balancing legality (state minimums), lender requirements (if financed), and your personal risk tolerance. The best way to avoid surprises is to get quotes using the VIN before you buy, confirm whether the title is clean, and compare multiple insurers for the same coverage limits and deductibles.