
USAA, GEICO, State Farm, and Erie are some of our favorite affordable companies for a used car.
After spiking during the pandemic, the average cost of used cars has decreased by 6 percent from 2023 to 2024, with the trend continuing into 2025. However, prices still remain about 33 percent higher than pre-pandemic levels. Some providers charge less to insure used cars, mostly due to their lower values. However, other companies charge more, partly because used vehicles lack the cutting-edge safety features of newer ones. Each insurance provider uses a different formula to calculate premiums, which is why it’s important to shop around. We’re here to walk you through the pros and cons of each insurer and help you pick the company that’s right for your used car.
You might also be interested in our guide to buying a used car, the best auto loans for used cars, and how you can get the best deal on a used car.
Insurance company | What it’s best for | Available discounts | Full coverage average | Minimum coverage average | J.D. Power Claims Satisfaction1 |
---|---|---|---|---|---|
USAA | Military and veterans | Good student, clean record, garage car on military installation, track safe driving behavior, multi-policy, multi-vehicle, newer vehicle (3 years old or less), anti-theft, loyal member | $1,407 | $417 | 726 – Above average |
GEICO | Discounts | Good student, vehicle safety features, good driver, defensive driving course, driver education course, military member, federal employee, membership association, multi-vehicle, multi-policy | $1,731 | $517 | 692 – Below average |
State Farm | Young drivers | Multi-vehicle, multi-policy, track safe driving behavior, accident-free, good driving history, defensive driver course, safe vehicle, good student | $2,167 | $674 | 710 – Above average |
Nationwide | Low mileage | Multi-policy, multi-vehicle, track safe driving behavior, accident-free, good student, defensive driver course, anti-theft, safe driver, automatic payments, paperless | $1,808 | $718 | 728 – Above average |
Erie | Coverages | Good driving history, track safe driving behavior, safe vehicle, multi-policy, multi-vehicle, reduced usage, young driver, annual payment, good student | $1,647 | $581 | 733 – Above average |
Best for Military and Veterans: USAA
Best for Low Credit: GEICO
Best for Young Drivers: State Farm
Best for Low Mileage: Nationwide
Best for Coverages: Erie
The United Services Automobile Association (USAA) offers auto insurance to individuals affiliated with the U.S. military. It combines good rates, solid coverage, and reliable customer service, making it a good choice for used car owners.
According to a report from AAA, vehicles 10 years old and older are twice as likely as newer vehicles to break down on the road and four times more likely to need a tow.2 Purchasing emergency roadside services helps protect you in the event your used car breaks down. USAA’s roadside coverage includes:
USAA provides an array of financial services in addition to auto insurance, such as vehicle financing. For used car models from 2018 to 2023, USAA offers loan rates starting at 5.34 percent on a 36-month term, or as low as 7.44 percent on a 36-month term for models 2017 and older.3 (According to Edmunds as of February, 2025, the average used car APR is over 11 percent.)4 USAA loan approvals are good for 45 days and have the following benefits:
Typically, you will get a decision on whether your loan is approved within a few minutes. Most insurance companies do not also sell auto loans, so it is easy and convenient to get both under one roof. However, one exception is State Farm, which offers loans through the U.S. Bank.
If you own a newer or higher-value used car, you may consider purchasing USAA’s car replacement coverage. With this coverage, in the event of a total loss, you will get an additional 20 percent over the actual cash value of the car. You will receive the money in cash so you can decide whether you want to spend it on another vehicle or something else.
Take note that in order to purchase car replacement assistance, you also need to carry comprehensive and collision coverage. For older vehicles, the value may be too low to warrant purchasing the coverage.
GEICO is the cheapest option on our list after USAA and Erie—but unlike those companies, it’s available to everyone, regardless of where you live or your military affiliation. It’s a particularly good option for those on the hunt for discounts and drivers with poor credit. If you want affordable property casualty insurance, whether you want minimum coverage or full coverage, consider GEICO when seeking the best car insurance provider.
GEICO is known for being one of the most affordable insurers in the country, and it offers customers a number of discounts. The following can help you save on premiums for your used car:
Discount | Potential savings |
---|---|
Airbag | 23% |
Anti-lock brakes | 5% |
Anti-theft system | 23% |
Daytime running lights | 3% |
Good driver (5 years accident-free) | 22% |
Seat belt use | Varies |
Defensive driver course | Varies |
Driver education course | Varies |
Good student | 15% |
Emergency military deployment | 25% |
Federal employee | 12% |
Membership and employee (over 500 affiliates, including alumni associations, Berkshire Hathaway Companies, and professional organizations) | Varies |
Military | 15% |
Multi-vehicle | 25% |
Multi-policy | Varies |
DID YOU KNOW?
Anti-lock brakes (ABS) help prevent loss of vehicle control if you need to brake in an emergency. Since 2012, the National Highway Traffic Safety Administration has required ABS on all vehicles.5
Because used vehicles are more likely to break down than new ones, it can be a good idea to purchase emergency roadside coverage. GEICO’s emergency roadside services cover the following:
Coverage starts at $14 annually per vehicle, or a little over a dollar a month. If you hold coverage and pay for services out of pocket, you can submit a claim for reimbursement. GEICO claims that assistance typically arrives within an hour of calling for help.
In most states, drivers with poor credit will pay more for auto insurance. If you took out a loan for your used car, you’ll also likely have to pay a higher interest rate. GEICO offers competitive auto insurance rates, even for drivers with a less-than-stellar credit history. Nationwide and USAA also offer below average rates for drivers with poor credit, while State Farm’s rates are nearly double the national average.
Provider | Annual with Low Credit | Monthly with Low Credit |
---|---|---|
GEICO | $2,492 | $208 |
USAA | $2,511 | $209 |
Nationwide | $2,708 | $226 |
State Farm | $6,814 | $568 |
National average | $3,377 | $281 |
State Farm combines affordable coverage with strong customer service and financial strength. With multiple ways to save, it’s an especially strong choice for young drivers of used cars.
Because the cost of insuring teen drivers is higher than for adults, a used vehicle often makes the most sense. In addition to the savings of driving a used car rather than a new one, State Farm offers several ways for young drivers and their families to spend less on auto insurance:
If you rely on your car as your primary mode of transportation, it’s a good idea to purchase rental reimbursement coverage. That way, if something happens to your vehicle, you don’t have to worry about paying out of pocket for a rental while your car is in the shop.
If you add rental reimbursement to your State Farm policy, you can choose your daily and per-claim coverage limits. The higher your limits, the higher your premium. For example, if you have limits of $15 per day and up to $375 per incident, you’ll pay less than if you have limits of $25 per day and $625 per incident.
State Farm’s rental coverage comes with a couple nice benefits:
Keep in mind, you must carry collision and comprehensive coverage in order to purchase rental reimbursement. In general, collision and comprehensive coverage make the most sense for used vehicles less than 10 years old. That’s because the older a vehicle gets, the less it’s worth and the lower the payout will be in the event of a total loss. For vehicles more than 10 years old, the annual cost of collision and comprehensive coverage may add up to more than what the vehicle is worth.
If you bought your used car in order to earn money driving for rideshare, State Farm is a great choice.
Its rideshare coverage extends the protections of your personal policy to the times when you’re driving for rideshare. While rideshare companies must offer some insurance coverage, it’s often insufficient, especially in the period when you’ve turned on the app and are waiting to match with a rider.
Coverage | App is on, but haven’t connected with a paying customer yet | Matched with rider and driving to pick them up | Transporting passenger |
---|---|---|---|
Bodily injury and property damage liability | State Farm | Rideshare company | Rideshare company |
Medical payments | State Farm | State Farm | State Farm |
Collision, comprehensive, rental reimbursement, and emergency roadside assistance | State Farm | State Farm | State Farm |
Keep in mind, Lyft and Uber have requirements for vehicle age, and older cars are often disqualified. Uber requires vehicle models to be 15 years old or newer.6 Lyft requirements vary by location, but fall within the 10- to 15-year range.7
Nationwide offers a pay-per-mile program, making it a good option for used car owners who don’t drive frequently or long distances. It also provides a unique insurance review program that can help ensure you have the coverages you need.
If you bought your used car for short trips around town or other infrequent use, Nationwide offers an option that may cost less than a traditional policy. With Nationwide’s pay-per-mile program SmartMiles, you’ll pay a monthly base rate plus a rate per every mile you drive each month. For example:
Monthly base rate | Cost per mile | Miles driven per month | Monthly cost |
---|---|---|---|
$60 | $.07 | 250 | $77.50 |
$60 | $.07 | 350 | $84.50 |
$60 | $.07 | 500 | $95 |
SmartMiles offers the same coverage options as a traditional policy. It is available in all states except Arkansas, Louisiana, Hawaii, North Carolina, New York, and Oklahoma. Nationwide is the only provider on our list that offers a pay-per-mile program, though State Farm’s Drive Safe & Save program rewards drivers for low mileage, and it also offers a separate low mileage discount for customers who drive fewer than 7,500 miles annually.
Nationwide tracks your miles driven with a small device that you install on your vehicle. Alternatively, with certain Ford and Lincoln connected cars, you won’t need the device; the car itself can track your miles for you. Most vehicles manufactured after 1996 are compatible, though some hybrids and diesel-powered cars may not be.
Pay-per-mile options make the most sense for people who drive infrequently. For example, you might consider the option if you:
As your used car ages and loses value over time, your insurance needs may change. After you buy a policy, Nationwide will give you the chance to review your insurance needs with an agent regularly. The conversation can help you determine whether:
You can take advantage of this benefit every year, or whenever you experience a change that might affect your insurance needs.
Buying a used vehicle will save you money in car payments, but you’ll also want to take advantage of discounts to keep your insurance premium as low as possible. Nationwide offers the following discounts:
TIP:
If your used vehicle doesn’t already have an anti-theft device, you can install one. Visible steering wheel locks and aftermarket alarm systems can deter theft and save you money on insurance.
Erie offers a range of coverage options and a number of benefits included with each plan, like windshield repair, pet injury coverage, and travel expense coverage. In addition, J.D. Power has consistently ranked Erie highly for customer satisfaction (it’s the highest-rated insurance company in the Mid-Atlantic and North Central regions of the country, for example). Additionally, Erie holds an A+ rating for financial strength from AM Best.
Erie offers the following coverages with all of its policies:
Benefit | Description | Comes with |
---|---|---|
Travel expenses | Covers meals and lodging if you cannot drive your car due to a covered loss | Any covered loss |
Windshield repair | Repairs a damaged windshield and covers comprehensive deductible | Comprehensive |
Pet injury coverage | Reimbursement of up to $500 per pet, for two pts total, to cover veter treatment costs in a covered accident that occurred in your car | Any covered loss |
A recent J.D. Power study found that rising costs of auto insurance have decreased customer satisfaction with insurance providers. Prices are up despite the fact that the average cost of a used car has decreased.
Erie’s rate lock feature can help you avoid car insurance rate increases by locking in your rate year over year. In other words, your rates will not change when you renew your policy unless you make certain changes. These include:
If you choose to add or remove coverages, your premium will reflect that adjustment without changing the cost of your other coverages. Keep in mind, rate lock does not guarantee coverage. For example, if you get a DUI or commit another serious violation, Erie can choose to drop your policy.
If you purchased Erie’s better car protection coverage, in the event of a total loss, you can replace your car with a vehicle that is two model years newer. Purchasing the protection can offer a silver lining in a stressful situation.
Keep in mind that this coverage is not available in New York or North Carolina. In order to purchase the coverage, you need to have collision and comprehensive coverage. Erie also offers lease/loan protection, which will cover the balance of your auto loan if your car is totaled.
In determining our top selections, we gave precedence to companies that provide competitive rates, extensive coverage options, and potential discounts for owners of used cars. Our approach encompasses four fundamental components:
We named the following companies as the best for auto insurance in our recent analysis:
That said, the best company for an individual depends on a number of factors, like location, type of coverage, credit score, and age. Compare quotes from at least three different companies to find the best rate.
The following providers offer cheap auto insurance:
In general, the best way to find cheap auto insurance is to shop in advance and get at least three quotes before choosing a provider.
Yes, you should get insurance before buying a used car. In most states, you can technically buy a car without auto insurance, but you can’t legally drive it off the lot. It’s wise to get a car insurance quote before going to the dealership or meeting a private seller so that you can insure the car as soon as you buy it. If you know the VIN of the car you’re interested in, or even the make/model, many insurers can give you an estimated quote before you purchase the car. You can then finalize and purchase the policy when you buy the car.
If you already have insurance for another vehicle, many insurers have a grace period to add newly purchased vehicles. During the grace period, your existing insurance will cover the car, even if you haven’t added it to the policy yet.
The cost to insure a used car depends on the vehicle type, though insuring a used car is typically less expensive than insuring a new car.
2024 U.S. Auto Claims Satisfaction Study. J.D. Power. (2024, Oct 29).
https://www.jdpower.com/business/press-releases/2024-us-auto-claims-satisfaction-study
Double Digits Means Double Trouble for Vehicle Breakdowns. AAA Newsroom. (2018, Apr 17).
https://newsroom.aaa.com/2018/04/double-digits-means-double-trouble-vehicle-breakdowns/
Auto Loans and Financing for Military Members – USAA. USAA. (2025).
https://www.usaa.com/inet/wc/bank-loan-auto-main?akredirect=true
April Car Loan Rates (APR) in the U.S. for Used and New Cars. Edmunds. (2025).
https://www.edmunds.com/car-loan-apr-interest-rate/
Interpretation ID: 1210corrforweb. National Highway Traffic Safety Administration. (2025).
https://www.nhtsa.gov/interpretations/1210corrforweb
Vehicle Requirements | Driving & Delivering – Uber Help. Uber. (2025).
https://help.uber.com/driving-and-delivering/article/vehicle-requirements?nodeId=2ddf30ca-64bd-4143-9ef2-e3bc6b929948
Vehicle Requirements – Lyft Help. Lyft. (2025).
https://help.lyft.com/hc/e/all/articles/115013077448-Vehicle-requirements