How to Buy the Best Used Car Insurance: Reviews, Quotes, & Tips

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Written by J.J. Starr Edited by Nick Versaw

Updated June 16th, 2023

When shopping for car insurance for your used vehicle, you may notice the broad range of coverage options. Your vehicle may be 1 year old or 15 years old, which can create different circumstances (among several other important factors). The broadness of used car insurance can make things overwhelming for drivers who just want to get the best policy with ease.

We get it.

That’s why we wrote this article: to equip you with everything you need to get the best used car insurance policy. And if we can help you save some money along the way, all the better.

Below, you’ll find an in-depth guide to the best insurers for used car insurance. You’ll also find a ton of tips to ensure you have the right policy at the best price.

Key Takeaways

• Used car insurance can offer the same bells and whistles as any new car insurance policy.
• The best used car insurance companies offer lots of coverage options, excellent customer service, and competitive rates.
• Used cars are typically less expensive to insure than new vehicles for several reasons, but premiums will depend on the car’s make, model, and year, among other factors.

Best Car Insurance Companies for a Used Car

Many excellent insurance options exist across the country for used car drivers. Below, we offer some of the best available auto insurers. We chose them based on customer service scores, coverage options, discount opportunities, and cost.

As you review our list, remember that each company below offers all the basics: bodily injury liability, property damage, collision, comprehensive, and uninsured/underinsured motorist protection. Each also offers MedPay or PIP in applicable states. Lastly, for J.D. Power scores, we defaulted to the region where the insurer earned the highest score. Scores vary by region. We note the variance when scores vary considerably.

Amica Mutual

Amica — pronounced a-ME-ca — offers a lot to the used car driver. As a policyholder, you can expect a responsive and courteous customer support team every step of the way. Amica tops the charts for claims satisfaction from J.D. Power. Customers can opt into the Platinum Choice Auto program for additional benefits and perks, including identity theft protection.

Amica is a mutual insurance company, which means its policyholders own it. As a policyholder, you can opt in to a slightly more expensive policy to become a mutual owner. By doing so, you’ll also earn dividends when revenue is good. And with a host of hefty discounts on already competitive rates, Amica premiums can help your financial bottom line.

A few downsides exist. We’d be remiss not to point out that Amica doesn’t offer policies to Hawaii drivers. Though drivers may find a lower rate elsewhere, they likely won’t find it from a company offering as many policy options and perks.

Erie Insurance

For eligible drivers, Erie Insurance is well-recognized as one of the best auto insurance companies in the country. The company has exceeded industry standards for claims and customer satisfaction. Policyholders work with a designated agent to choose from the dozen-plus policy customization options.

It offers rare coverage options, including Erie Auto Plus, a full-service car insurance policy that provides the following perks for a nominal price increase:

• Increased coverage limits
• Diminishing deductible
• Additional transportation expense coverage
• Waived deductible for certain situations
• Death benefit of $10,000

Erie has received recognition from J.D. Power, Forbes, and Marketwatch. If you live within the service area, be sure to check out Erie Insurance.

Wawanesa

Wawanesa is a regional insurer that seems to be constantly topping the charts (where available). The company doesn’t often get the recognition it deserves as a customer-loved insurer providing affordable policies in one of the largest insurance markets in the nation.

J.D. Power has recognized Wawanesa as one of the best insurance companies in the California market. The company has also written policies in Oregon but has suspended policies for the time being. Its limited availability is one of its only shortcomings. That, and the company’s admittedly sparse optional coverage add-ons.

Despite these drawbacks (and no mobile app), the small insurer still does an excellent job providing a user-friendly and mobile-friendly website.

NJM Insurance Company

New Jersey Manufacturers Insurance Group (NJM) is the second mutual insurance company on our list. The insurer’s been in business for over 100 years and has enjoyed high marks for its customer service for nearly as long. Policyholders generally enjoy low rates and many discount options to lower their premiums.

While it’s a top contender in the auto insurance space, we think NJM is left off many “best-of” lists because of its limited availability. The company only offers policies in New Jersey, Connecticut, Delaware, Maryland, New York, Ohio, and Pennsylvania. And though car insurance companies’ discounts and coverage options always vary from state to state, NJM’s offerings vary more than average. So, be sure to check the specifics for your state when evaluating an NJM policy.

GEICO

Chances are you’ve heard of GEICO and how the company “might save you 15% on car insurance.” So, it’s probably not a huge surprise to see the insurer on this list. Its accolades include a well-regarded claims process, an easy-to-contact customer service team, and top-of-the-line ease-of-use investments.

As a large insurer, GEICO has been at the forefront (though it wasn’t the first) to adopt modern features such as a telematics program and mobile app. The app has recently undergone a series of updates that significantly improved its design. Even with heavy reinvestments, the insurer still offers rock-bottom rates to many used car drivers.

Forbes, U.S. News & World Report, CNBC, and Marketwatch have named GEICO among the best insurance companies in the nation. But readers should note that the company lacks common coverage options, such as gap insurance. It also only has average scores for customer satisfaction but still has high retention rates.

State Farm

Here’s another national brand on the list, and with good reason. State Farm is one of the biggest insurers in the country (second only to Progressive), but it still earns high marks for claims satisfaction and decent marks for customer satisfaction. Policyholders typically find affordable rates with the insurer. And even when drivers pay higher rates, they can still lower their premiums with discounts, including two telematics programs. State Farm is also an excellent option for rideshare drivers.

Forbes, U.S. News & World Report, CNBC, and Marketwatch have all named State Farm a top insurer. Despite the accolades, you should know you won’t find goodies like accident forgiveness here. Gap coverage, new car replacement, and vanishing deductibles are also unavailable.

COUNTRY Financial

There’s no wonder COUNTRY Financial made our “best-of” list. With its agent model, policyholders can work with a designated customer service representative. Also, its claims satisfaction score reflects its success, with nearly the highest in the nation.

But, despite its personalized customer service, the company does have some weak spots. Notably, COUNTRY Financial has a small service area and a clunky website and mobile app. (which has so-so reviews on the Google Play store). It also has a lack of standard coverage options, like rideshare. Even so, there are several perks, including trip interruption coverage.

American Family

American Family — known as AmFam by customers — is our final insurer on the list. The company has high marks for claims satisfaction and few customer complaints. While the company already offers reasonably competitive rates, it provides one of the most extensive discount programs as well.

AmFam awards no fewer than five discounts tailored to young drivers. But despite an extensive menu of discounts, the company doesn’t have many coverage perks. Vanishing deductibles and waived deductibles are unavailable. Even so, Forbes and U.S. News & World Report have recognized AmFam as a top insurer.

How to Insure a Used Vehicle

Insuring a used vehicle follows the same principles as insuring any car.

The key is to find a policy that feels tailored to your needs. With so many great options in most areas, it isn’t hard to find a policy that offers what you want. The real work is deciding which one best fits your needs.

Choose your coverage options

You have to meet state minimum requirements to drive legally, but you’ll have additional options. Consider carrying comprehensive and collision coverage if your car is worth more than $5,000. If you have a car loan, your lender will require you to carry these additional options.

You’ll also want to consider which coverage perks make the most significant effect on your life. For example, accident forgiveness, vanishing deductibles, and roadside assistance might hugely benefit you.

Choose your coverage limits

While you’re required to carry state-minimum liability coverage, that doesn’t mean you can’t opt for additional coverage. For most drivers, minimum-coverage limits aren’t enough to offer full protection on the road.

Increasing your limits doesn’t increase your rates by much, though. Comparing car insurance costs for different coverage limits is always a good idea.

Select your policy and complete the purchase

After reviewing your options, you just need to decide which policy best fits your needs. Once you choose, you can purchase your new policy and cancel your old one. Don’t forget to download your new insurance cards!

How Car Insurance Changes When You Have a Used Vehicle

Insuring older cars comes with a few special considerations. As your car ages, it loses its value. Eventually, it will diminish enough that the cost of purchasing a full-coverage policy outweighs the benefits. This is often around the $5,000 mark.

Older cars may also lack certain vehicle safety features that earn discounts from some insurers. Some drivers also prefer to carry emergency roadside assistance for older cars. Ultimately, you’ll need to consider the specific needs of your used car.

Ways to Save on Car Insurance When You Have a Used Vehicle

The most popular way to save on used car insurance is by switching to a liability coverage-only policy. These policies only insure your liability — what you would owe other people if you caused an accident. They don’t insure your property (i.e., your vehicle). They also don’t cover you if you’re injured unless you carry personal injury protection or medical payments coverage (which we highly recommend even if your state doesn’t require it).

But for people with used cars that have a car loan or are still worth a significant amount, dropping to liability-only coverage doesn’t work. That’s OK! Many other ways to lower your rate include:

• Using discounts, especially bundling and telematics programs
• Setting a higher deductible (what you pay out of pocket in case of a claim)
• Comparing rates from three to five insurance companies
• Shopping around at least every six months to ensure you’ve got the best deal (the best way to find chances to save)

Remember that the cheapest used car policy may not offer incredible value. When comparing rates, always look closely at the policy options and additional perks.

Tips to Find the Best Used Car Insurance Company

To find the best insurance company, you need to understand two things: what you need most from your insurance policy and what options are available in your market. There’s no one-size-fits-all when it comes to car insurance.

The best thing to do then is to rate each potential insurer based on how well it meets your needs. That’s why we often recommend buyers list their needs and prioritize them. A list will go a long way in helping you decide which company is best for you.

Used Car Insurance FAQs

What kind of insurance should you get for a used car?

There’s a lot of advice recommending that drivers of used cars only need minimum coverage. But that’s not always the case. If you have a car loan for your used car, your lender will require you to carry collision and comprehensive coverage. You may also need gap coverage if you ever owe more on your vehicle than its fair market value.

What is the best auto insurance company for used cars?

The best insurance company for used cars offers three things: excellent customer service, a wide selection of customization options, and competitive pricing. The best insurance company for you and your used car is the one that best meets your needs and expectations. Always consider your personal needs, preferences, and budget when deciding which company is best for you.

What is the most used insurance company?

Regarding market share, Progressive Insurance is the most-used car insurance company in the nation. It writes 14.2% of auto policies. State Farm closely follows it, at 13.5%, and GEICO, at 12.5%. These three companies alone account for over $100 billion in annual premiums.

Who usually has the cheapest car insurance?

Unfortunately, no car insurance company universally offers the cheapest rate. But several auto insurers — including State Farm, GEICO, and Progressive — are known for their affordability.

Many insurance companies may not offer the most competitive car insurance rates, but they provide a wide range of deep discounts that ultimately make them more affordable than their competitors. Additionally, regional insurers, such as Erie and Wawanesa, regularly beat out the more prominent national brands.

J.J. Starr Insurance Writer

J.J. Starr is an insurance writer for Compare.com who specializes in auto insurance and personal finance. She has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand. Prior to writing for Compare.com, J.J was a registered banker and life insurance consultant. She holds a master's degree in writing from New York University and a bachelor's degree from Stephens College.