Average used car insurance rates by year for 2006 to 2018
Year | Make | Model | Average annual rate |
2006 Least expensive used car rates | |||
2006 | Honda | Odyssey LX | $922 |
2006 | Chrysler | Town & Country | $923 |
2006 | Dodge | Caravan SE | $925 |
2006 | Dodge | Grand Caravan SE | $955 |
2006 | Ford | Escape XLS | $956 |
2006 | Jeep | Wrangler SE | $957 |
2006 | Ford | Escape XLS | $958 |
2006 | Saturn | Vue | $959 |
2006 | Chevrolet | Express G1500 | $959 |
2006 | Hyundai | Tucson GL | $963 |
2006 | Toyota | Sienna CE | $964 |
2006 | Chevrolet | Express G1500 LS | $965 |
2006 Most expensive used car rates | |||
2006 | Mercedes | S65 AMG | $2,141 |
2006 | Mercedes | SL65 AMG | $2,016 |
2006 | Mercedes | S600 | $1,906 |
2006 | Audi | A8 L Quattro | $1,893 |
2006 | Mercedes | CL500 | $1,814 |
2006 | Jaguar | XKR Victory Limited | $1,768 |
2006 | Mercedes | SL500 | $1,704 |
2006 | Mercedes | G55 AMG Grand Edit AWD | $1,703 |
2006 | Porsche | 911 Carrera 4S | $1,678 |
2006 | Mercedes | S500 AWD | $1,653 |
2006 | Land Rover | Range Rover Westminster | $1,651 |
2006 | Jaguar | XK8 Victory Limited | $1,632 |
2007 Least expensive used car rates | |||
2007 | Honda | Odyssey LX | $936 |
2007 | Dodge | Caravan SE | $937 |
2007 | Chrysler | Town & Country | $944 |
2007 | Ford | Escape XLS | $965 |
2007 | Jeep | Wrangler X | $966 |
2007 | Jeep | Compass Sport | $967 |
2007 | Hyundai | Tucson GLS | $972 |
2007 | Ford | Escape XLS | $972 |
2007 | Saturn | Vue | $972 |
2007 | Chevrolet | Express G1500 | $978 |
2007 Most expensive used car rates | |||
2007 | Mercedes | S65 AMG | $2,274 |
2007 | Mercedes | SL65 AMG | $2,073 |
2007 | Mercedes | S600 | $2,010 |
2007 | Mercedes | CLS63 AMG | $1,944 |
2007 | Porsche | 911 GT3 | $1,923 |
2007 | Audi | A8 L Quattro | $1,919 |
2007 | Jaguar | XKR | $1,847 |
2007 | Mercedes | S550 4MATIC AWD | $1,788 |
2007 | Mercedes | SL550 | $1,757 |
2007 | Porsche | 911 Carrera 4S | $1,748 |
2008 Least expensive used car rates | |||
2008 | Honda | Odyssey LX | $952 |
2008 | Jeep | Wrangler X | $966 |
2008 | Ford | Escape XLS | $986 |
2008 | Chrysler | Town & Country LX | $988 |
2008 | Jeep | Patriot Sport | $990 |
2008 | Chevrolet | Express G1500 | $991 |
2008 | Hyundai | Tucson GLS | $997 |
2008 | Honda | CR-V LX | $998 |
2008 | Chrysler | Town & Country LX | $1,001 |
2008 | Dodge | Grand Caravan SE | $1,001 |
2008 | Toyota | Sienna CE | $1,003 |
2008 Most expensive used car rates | |||
2008 | Mercedes | S65 AMG | $2,348 |
2008 | Mercedes | SL65 AMG | $2,187 |
2008 | Porsche | 911 GT2 | $2,108 |
2008 | Porsche | 911 GT3 RS | $2,096 |
2008 | Mercedes | S600 | $2,092 |
2008 | Mercedes | S63 AMG | $2,084 |
2008 | Jaguar | XKR Portfolio | $2,026 |
2008 | Mercedes | CLS63 AMG | $1,996 |
2008 | Porsche | 911 Turbo | $1,993 |
2008 | Mercedes | SL550 | $1,856 |
2009 Least expensive used car rates | |||
2009 | Jeep | Wrangler X | $980 |
2009 | Honda | Odyssey LX | $986 |
2009 | Ford | Escape XLS | $1,001 |
2009 | Subaru | Outback AWD | $1,016 |
2009 | Jeep | Patriot Sport Off Road | $1,020 |
2009 | Volkswagen | Routan SE | $1,023 |
2009 | Hyundai | Tucson GLS | $1,023 |
2009 | Subaru | Outback L.L. Bean AWD | $1,025 |
2009 | Chrysler | Town & Country LX | $1,026 |
2009 | Chevrolet | Express G1500 | $1,026 |
2009 | Hyundai | Santa Fe GLS | $1,028 |
2009 Most expensive used car rates | |||
2009 | Mercedes | S65 AMG | $2,421 |
2009 | Mercedes | SL65 AMG | $2,272 |
2009 | Mercedes | SL63 AMG | $2,252 |
2009 | Porsche | 911 Carrera GT2 | $2,218 |
2009 | Mercedes | S63 AMG | $2,153 |
2009 | Mercedes | S600 | $2,149 |
2009 | Mercedes | CLS63 AMG | $2,140 |
2009 | Audi | A8 L Quattro | $2,097 |
2009 | Jaguar | XKR Portfolio SC | $2,076 |
2009 | Chevrolet | Corvette ZR1 | $1,992 |
2009 | Nissan | GT-R | $1,983 |
2010 Least expensive used car rates | |||
2010 | Jeep | Wrangler X | $1,000 |
2010 | Honda | Odyssey LX | $1,009 |
2010 | Ford | Escape XLS | $1,031 |
2010 | Ford | Escape XLT | $1,036 |
2010 | Volkswagen | Routan S | $1,037 |
2010 | Honda | CR-V LX | $1,043 |
2010 | Dodge | Grand Caravan Hero | $1,044 |
2010 | Chrysler | Town & Country LX | $1,045 |
2010 | Jeep | Patriot Sport Off Road | $1,046 |
2010 | Toyota | Tacoma | $1,048 |
2010 Most expensive used car rates | |||
2010 | Mercedes | S65 AMG | $2,485 |
2010 | Porsche | 911 Carrera GT3 RS | $2,308 |
2010 | Nissan | GT-R | $2,242 |
2010 | Mercedes | S63 AMG | $2,242 |
2010 | Mercedes | CLS63 AMG | $2,229 |
2010 | Mercedes | S600 BI-T Turbo | $2,216 |
2010 | Jaguar | XKR Portfolio SC | $2,176 |
2010 | Porsche | Panamera Turbo | $2,104 |
2010 | Audi | A8 L Quattro | $2,082 |
2010 | Mercedes | S550 4Matic AWD | $2,081 |
2010 | Chevrolet | Corvette ZR1 | $2,079 |
2011 Least expensive used car rates | |||
2011 | Honda | Odyssey LX | $1,032 |
2011 | Volkswagen | Routan S | $1,049 |
2011 | Ford | Escape XLS | $1,051 |
2011 | Dodge | Grand Caravan C/V | $1,054 |
2011 | Jeep | Wrangler Sport | $1,056 |
2011 | Honda | CR-V LX | $1,058 |
2011 | Jeep | Patriot Sport | $1,062 |
2011 | Jeep | Compass | $1,065 |
2011 | Toyota | Sienna | $1,066 |
2011 | Toyota | Tacoma | $1,066 |
2011 Most expensive used car rates | |||
2011 | Mercedes | S65 AMG | $2,867 |
2011 | Mercedes | SL65 AMG | $2,678 |
2011 | Porsche | 911 Carrera GT2 RS | $2,595 |
2011 | Mercedes | S600 BI-T | $2,588 |
2011 | Mercedes | S63 AMG | $2,583 |
2011 | Mercedes | SL63 AMG | $2,541 |
2011 | Porsche | Panamera Turbo | $2,432 |
2011 | Jaguar | XKR Portfolio SC | $2,429 |
2011 | Nissan | GT-R | $2,355 |
2011 | Porsche | 911 Carrera GT3 RS | $2,353 |
2011 | Mercedes | CLS63 AMG | $2,345 |
2012 Least expensive used car rates | |||
2012 | Ford | Escape XLS | $1,056 |
2012 | Jeep | Wrangler Sport | $1,063 |
2012 | Honda | Odyssey LX | $1,067 |
2012 | Jeep | Patriot Sport | $1,072 |
2012 | Dodge | Grand Caravan SE | $1,073 |
2012 | Honda | CR-V LX | $1,073 |
2012 | Dodge | Grand Caravan AVP | $1,077 |
2012 | Hyundai | Tucson GL | $1,078 |
2012 | Volkswagen | Routan S | $1,083 |
2012 | Ford | Transit | $1,084 |
2012 Most expensive used car rates | |||
2012 | Mercedes | S65 AMG | $2,984 |
2012 | Mercedes | SL65 AMG | $2,760 |
2012 | Mercedes | S600 BI-T | $2,678 |
2012 | Mercedes | SL63 AMG | $2,660 |
2012 | Mercedes | S63 AMG | $2,645 |
2012 | Jaguar | XKR Supercharged | $2,562 |
2012 | Porsche | Panamera Turbo S | $2,546 |
2012 | Tesla | Model S Peformance EV | $2,545 |
2012 | Nissan | GT-R | $2,491 |
2012 | Audi | A8 L 6.3 Quattro | $2,448 |
2013 Least expensive used car rates | |||
2013 | Honda | Odyssey LX | $1,070 |
2013 | Honda | CR-V LX | $1,076 |
2013 | Jeep | Patriot Sport | $1,078 |
2013 | Jeep | Compass Sport | $1,094 |
2013 | Hyundai | Tucson GL | $1,097 |
2013 | Jeep | Wrangler Sport | $1,097 |
2013 | Ford | Escape S | $1,097 |
2013 | Dodge | GrandCaravan American Pkg | $1,098 |
2013 | Chevrolet | Express G1500 | $1,107 |
2013 | Ford | F-150 XL | $1,112 |
2013 Most expensive used car rates | |||
2013 | Mercedes | S65 AMG | $3,070 |
2013 | Mercedes | SL65 AMG | $2,881 |
2013 | Nissan | GT-R Black Edition | $2,776 |
2013 | Mercedes | S600 | $2,767 |
2013 | Mercedes | S63 AMG | $2,749 |
2013 | Mercedes | SL63 AMG | $2,716 |
2013 | Jaguar | XKR Supercharged | $2,679 |
2013 | Porsche | Panamera Turbo S | $2,637 |
2013 | Mercedes | CLS63 AMG | $2,589 |
2013 | Porsche | 911 Turbo S | $2,561 |
2014 Least expensive used car rates | |||
2014 | Honda | Odyssey Lx | $1,084 |
2014 | Jeep | Patriot Sport | $1,096 |
2014 | Honda | CR-V LX | $1,097 |
2014 | Jeep | Patriot Sport | $1,106 |
2014 | Jeep | Compass Sport | $1,107 |
2014 | Dodge | Grand Caravan SE | $1,110 |
2014 | Ford | Escape S | $1,110 |
2014 | Jeep | Wrangler Sport | $1,112 |
2014 | Subaru | Outback 2.5I | $1,121 |
2014 | Nissan | Xterra X | $1,123 |
2014 Most expensive used car rates | |||
2014 | Mercedes | SL65 AMG | $2,969 |
2014 | Jaguar | XKR-S | $2,933 |
2014 | Mercedes | SL63 AMG | $2,920 |
2014 | Nissan | GT-R Black Edition | $2,860 |
2014 | Porsche | 911 Turbo S | $2,837 |
2014 | Porsche | Panamera Executive | $2,761 |
2014 | Mercedes | S63 AMG | $2,703 |
2014 | Audi | A8 L 6.3 Quattro | $2,607 |
2014 | Mercedes | CLS63 AMG 4MATIC | $2,576 |
2014 | BMW | 750i XDRIVE | $2,517 |
2014 | Mercedes | S550 4MATIC AWD | $2,514 |
2015 Least expensive used car rates | |||
2015 | Honda | Odyssey LX | $1,098 |
2015 | Jeep | Patriot Sport | $1,109 |
2015 | Honda | CR-V LX | $1,112 |
2015 | Jeep | Compass Sport | $1,120 |
2015 | Jeep | Wrangler Sport | $1,124 |
2015 | Dodge | Grand Caravan AVP | $1,127 |
2015 | Jeep | Cherokee Sport | $1,129 |
2015 | Ford | Escape S | $1,129 |
2015 | Mazda | CX-5 Sport | $1,131 |
2015 | Nissan | Xterra X | $1,133 |
2015 | Buick | Encore | $1,136 |
2015 Most expensive used car rates | |||
2015 | Mercedes | SL65 AMG | $3,035 |
2015 | Nissan | GT-R Nismo | $3,027 |
2015 | Nissan | GT-R Black Edition | $2,975 |
2015 | Mercedes | S65 AMG | $2,954 |
2015 | Jaguar | XKR-S | $2,927 |
2015 | Mercedes | SL63 AMG | $2,925 |
2015 | Porsche | Panamera Tbo S Executive | $2,866 |
2015 | Porsche | 911 Turbo S | $2,853 |
2015 | Mercedes | S600 | $2,795 |
2015 | Mercedes | S63 AMG | $2,773 |
2015 | Audi | A8 L 6.3 Quattro | $2,678 |
2015 | Mercedes | CLS63 AMG 4MATIC S | $2,618 |
2015 | Mercedes | S550 4MATIC AWD | $2,613 |
2015 | BMW | Alpina B6 XDrive | $2,585 |
2016 Least expensive used car rates | |||
2016 | Honda | Odyssey LX | $1,113 |
2016 | Honda | CR-V LX | $1,170 |
2016 | Dodge | Grand Caravan AVP | $1,174 |
2016 | Jeep | Patriot Sport | $1,180 |
2016 | Jeep | Wrangler Sport | $1,181 |
2016 | Jeep | Compass Sport | $1,190 |
2016 | Ford | Escape S | $1,194 |
2016 | Buick | Encore Sport Tour | $1,200 |
2016 | Jeep | Cherokee Sport | $1,203 |
2016 | Nissan | Frontier S | $1,204 |
2016 | Nissan | Xterra X | $1,211 |
2016 | Mazda | CX-5 Sport | $1,211 |
2016 | Subaru | Outback 2.5I | $1,217 |
2016 | Chevrolet | Colorado | $1,223 |
2016 | Honda | Pilot LX | $1,226 |
2016 | Hyundai | Tucson SE | $1,227 |
2016 | Chrysler | Town & Country LX | $1,228 |
2016 Most expensive used car rates | |||
2016 | Dodge | GT Viper | $4,048 |
2016 | Mercedes | SL65 AMG | $3,797 |
2016 | Mercedes | S65 AMG | $3,684 |
2016 | Mercedes | S600 BI-T | $3,539 |
2016 | Mercedes | S63 AMG 4Matic | $3,513 |
2016 | Porsche | Panamera S Executive | $3,484 |
2016 | Nissan | GT-R Nismo | $3,476 |
2016 | Mercedes | SL63 AMG | $3,400 |
2016 | BMW | M6 Gran Coupe | $3,309 |
2016 | Land Rover | Range Rover SC AUTOBIO | $3,245 |
2016 | Audi | RS7 Quattro Prestige | $3,229 |
2016 | Porsche | 911 Carrera GT3 RS | $3,212 |
2017 Least expensive models to insure | |||
2017 | Honda | Odyssey LX | $1,112 |
2017 | Jeep | Renegade Sport | $1,138 |
2017 | Jeep | Wrangler Black Bear | $1,148 |
2017 | Honda | CR-V LX | $1,170 |
2017 | Jeep | Compass | $1,183 |
2017 | Subaru | Outback 2.5l | $1,187 |
2017 | Jeep | Cherokee Sport | $1,188 |
2017 | Buick | Encore (tie) | $1,190 |
2017 | Jeep | Patriot Sport (tie) | $1,190 |
2017 | Subaru | Forester 2.5l | $1,196 |
2017 Most expensive models to insure | |||
2017 | Mercedes | S65 AMG | $3,835 |
2017 | Dodge | GTS Viper | $3,779 |
2017 | Mercedes | S63 AMG | $3,624 |
2017 | Maserati | Quattroporte GTS | $3,547 |
2017 | Mercedes | S550 | $3,502 |
2017 | Mercedes | C43 | $3,418 |
2017 | Mercedes | Maybach S600 | $3,355 |
2017 | Mercedes | SL65 AMG | $3.322 |
2017 | Nissan | GT-R Nismo | $3,313 |
2017 | Audi | R8 5.2L V10 Quattro | $3,267 |
2018 Least expensive models to insure | |||
2018 | Jeep | Wrangler Freedom | $1,169 |
2018 | Honda | Odyssey LX | $1,181 |
2018 | Subaru | Crosstrek | $1,236 |
2018 | Subaru | Outback 2.5I | $1,238 |
2018 | Fiat | 500X Pop | $1,244 |
2018 | Mazda | CX-3 Sport | $1,248 |
2018 | Mazda | CX-5 Sport | $1,248 |
2018 | Jeep | Compass Sport | $1,257 |
2018 | Honda | HR-V LX | $1,257 |
2018 | Ford | Escape S | $1,258 |
2018 Most expensive models to insure | |||
2018 | Mercedes | S65 AMG | $3,890 |
2018 | Mercedes | S63 AMG | $3,670 |
2018 | Mercedes | Maybach S650 | $3,558 |
2018 | Porsche | Panamera S | $3,545 |
2018 | BMW | M6 Gran Coupe | $3,493 |
2018 | BMW | Alpina B7 XDrive | $3,465 |
2018 | BMW | I8 | $3,460 |
2018 | Nissan | GT-R Nismo | $3,458 |
2018 | Mercedes | SL65 AMG | $3,449 |
2018 | Mercedes | AMG GT S | $3,430 |
This year, the national average is $1,457, which is only a $92 increase from last year ($1,365).
Rank | State | Average premiums |
---|---|---|
1 | Michigan | $2,611 |
2 | Louisiana | $2,298 |
3 | Florida | $2,219 |
4 | Oklahoma | $1,966 |
5 | DC | $1,876 |
6 | California | $1,846 |
7 | Rhode Island | $1,834 |
8 | Delaware | $1,828 |
9 | New York | $1,789 |
10 | Texas | $1,779 |
11 | Georgia | $1,777 |
12 | Colorado | $1,761 |
13 | Connecticut | $1,640 |
14 | Wyoming | $1,602 |
15 | Montana | $1,600 |
16 | Kentucky | $1,594 |
17 | Arkansas | $1,566 |
18 | Maryland | $1,546 |
19 | Nevada | $1,525 |
20 | New Jersey | $1,520 |
21 | West Virginia | $1,472 |
22 | Arizona | $1,449 |
23 | South Carolina | $1,433 |
24 | Mississippi | $1,409 |
25 | Washington | $1,401 |
26 | Kansas | $1,398 |
27 | New Mexico | $1,382 |
28 | Minnesota | $1,362 |
29 | Tennessee | $1,297 |
30 | Illinois | $1,296 |
31 | Nebraska | $1,291 |
32 | Alabama | $1,287 |
33 | Oregon | $1,286 |
34 | Hawaii | $1,275 |
35 | Missouri | $1,272 |
36 | South Dakota | $1,262 |
37 | Massachusetts | $1,245 |
38 | Utah | $1,206 |
39 | Pennsylvania | $1,187 |
40 | Alaska | $1,183 |
41 | Indiana | $1,181 |
42 | Ohio | $1,175 |
43 | North Dakota | $1,164 |
44 | Vermont | $1,100 |
45 | North Carolina | $1,095 |
46 | New Hampshire | $1,087 |
47 | Virginia | $1,063 |
48 | Iowa | $1,047 |
49 | Idaho | $1,040 |
50 | Wisconsin | $951 |
51 | Maine | $845 |
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If you call any of these states home, your insurance bills will be higher (and in some cases much higher) than the national average. The reason varies. It may be a unique insurance system, loads of uninsured drivers or just plain high population density. Here are the top five most expensive states for car insurance, read them and weep.
#1 Michigan: Life-time unlimited benefits
This is the sixth year in a row Michigan has topped our list, and the state has never managed a finish lower than third since Insure.com started the ratings. This is primarily due to its unique insurance system.
The average annual premium in Michigan came in at $2,611. This is a huge leap from last year, a $372 jump to be exact. It also puts Michigan a whopping 79 percent above the national average of $1,457.
The major issue in Michigan is its insurance system. Michigan has a very unique no-fault car insurance scheme, which requires all drivers to carry Personal Injury Protection (PIP) coverage. PIP helps cover medical expenses that the policyholder, family members or even passengers that are injured in a car accident incur. (Read: The Importance Of Having Insurance Vehicle)
The difference between Michigan and other PIP states is the coverage limits. The majority of other states that use a PIP system put a reasonable limit on PIP coverage amounts. However, Michigan guarantees unlimited, lifetime medical benefits to auto accident victims, which dramatically increases an insurer's risk, and your premium.
#2 Louisiana: Lots of uninsured drivers, lots of lawsuits
Louisiana is back in the second spot for the third year in a row. It has been in the top five every year we've done the study. The average premium in the Pelican State hit $2,298, which is 58 percent more than the national average.
In Louisiana, the big factor bumping up rates is uninsured and underinsured drivers who like to sue each other.
The IRC study found that roughly 13 percent of Louisiana drivers don't have car insurance. in addition to this, almost 40 percent are carrying the absolute minimum coverage levels, according to Louisiana Insurance Commissioner Jim Donelon.
State-required minimum coverage levels vary by state and in Louisiana all drivers must carry:
Bodily injury liability: The minimum is $15,000 per person and $30,000 per accident
Property damage liability coverage: The minimum is $25,000
While these aren't the lowest minimums, these coverage levels will quickly be eaten up in even a semi-serious accident. This leads many drivers to turn to the legal system to get a higher payout. Louisiana Watchdog reports that Louisiana lawsuit costs are amount the highest in the U.S., with annual expenses nearly hitting $7 billion, 20.6 percent higher than the national average. Auto accidents are the largest portion of the tort system costs reaching nearly 3.4 billion.
#3 Florida: High-risk drivers, highest rate of uninsured drivers
The Sunshine state stayed in the third spot with an average premium of $2,219, which puts it 52 percent above the national average.
Uninsured drivers are a big factor for Florida with the IRC study ranking this state as having the highest rate of uninsured drivers in the nation. The survey estimates that 26.7 percent of drivers are out on the road without insurance. When a quarter of drivers are uninsured, it will absolutely increase the cost of insurance for everyone.
While Florida has more than its share of uninsured drivers it's not the only factor affecting car insurance rates. It is home to an estimated 21.3 million people and not all of them fall into the right category for insurers.
"Florida has a larger percentage of riskier drivers," points out Karen Kees, press secretary at the Florida Office of Insurance Regulation. "There are a high number of students due to the many universities in Florida, older drivers due to the large number of retirement communities, and drivers unfamiliar with the local roads due to our popularity with tourists."
#4 Oklahoma: Uninsured drivers, severe weather claims
The Sooner State made a dramatic jump up the list this year, going from 13th in 2018 to number four this year. The average premium in Oklahoma was $1,966 or 35 percent above the national average.
Oklahoma has a couple of problems that help jack up insurance rates. "Automobile insurance rates are higher mainly because of the catastrophic storms Oklahoma experiences and the rather large number of uninsured motorists," says Wayne Stewart, rate and form analyst with the Oklahoma Insurance Department.
Located in Tornado Alley, Oklahoma has experienced plenty of severe weather that leads to expensive claims for insurance companies and those costs end up hitting everyone's premium.
According to a Farmers Insurance report, Oklahoma ranked sixth for hail damage claims from 2013 to 2017. Farmers' data shows that 63 percent of their comprehensive auto insurance claims were connected to hail damage.
Uninsured drivers are the second major factor in Oklahoma that raises insurance rates. Officials with the Oklahoma Department of Public Safety estimated that roughly 600,000 Oklahoma residents were driving without valid car insurance. The IRC study says Oklahoma's uninsured driver rate is 11 percent.
#5 Washington D.C: Densely populated, fewer minor claims
Washington D.C. closes out the top five with an average annual premium of $1,876, putting it 29 percent above the national average. D.C. moved up one spot after finishing in sixth last year.
The big reason that D.C. makes the cut is population density. The entire district is basically an urban area, which leads to higher insurance rates. According to Census information, D.C has a population density of 11,020 people per square mile. While this number is certainly smaller than New York City, which clocks in at 28,256 people, it puts it well above other large cities, such as Houston and even Los Angeles.
Highly-populated cities often have higher crime, claim and vandalism rates, which means insurers have to charge higher rates to cover their costs. Tons of cars crammed into a small space leads to more accidents, which leads to claims, which ends in high car insurance rates.
High rates of disposable income can also push up insurance rates and D.C definitely falls into that category. 24/7 Wall Street reviewed 2017 income levels to identify the 25 richest cities in America and the nation's capital finished third.
How much auto insurance coverage to buy for your used car
- Before getting quotes, map out what levels of comprehensive, collision and liability insurance you want.
- Remember to be sure you compare rates for the exact same coverage levels -- an apples to apples comparison -- as you shop around.
- The level of insurance you need for your used car depends on your vehicle and situation. For instance, an older car may not need as much insurance as a one-year-old car.
- One caveat: Insurance companies take an entire model's claims history when devising rates. This means you will likely pay higher auto insurance rates regardless of your driving record if your car's model is often stolen, gets into many accidents or its drivers receive many tickets.
- When choosing auto insurance, the first thing you need to decide is how much liability insurance to get.
How much liability insurance you need
Liability insurance covers injuries to people in another vehicle or property if you're legally liable for an auto accident. Every state except New Hampshire requires at least a minimum level of liability insurance.
Liability insurance protects you and your assets in case of an accident. A used car can do as much damage to people and property as a new car so getting the right level of liability insurance is important.
Liability coverage is broken into two types: bodily injury and property damage. Though state minimums are much less, experts say you should get at least:
- $100,000 coverage for bodily injury per person
- $300,000 coverage for bodily injury per accident
- $100,000 property damage for your vehicle
The higher the coverage the better since if your limits are exceeded you'll be personally responsible.
Read: 7 Car Insurance Best 2019 and Tips Selecting It
Insuring a new, used car before you drive it
- You'll need auto insurance before you drive off the lot or away from the curb of a private owner, so it's a good idea to contact your insurance company before making the purchase. That way, you can have that settled before you buy the car and then potentially forget and get into trouble with your insurance company – and finance company if you financed your used vehicle. You don't want the finance company placing "forced" insurance on your vehicle at a very high cost. And make it clear if you are replacing a vehicle on your policy or adding an additional car to it, as that can make a difference on if there is immediate coverage with your current policy.
- If you already own a vehicle, generally you can transfer your insurance to your new vehicle for at least a few days. It depends on your insurance company's policy and state laws on if there is coverage you're your current policy and if so how soon you need a new insurance policy for your "new" car.
- If you buy a vehicle over the weekend, you'll want to contact your insurance company before making the purchase.
- If buying a vehicle from a private party and you'll be making payments to the seller, to insure the car you will need to title it in your name. You need the seller to sign over the title to you and then put himself on the title as a lienholder, this allows you to title and insure the car and him to protect himself that you'll pay for the car – or he can take legal action.
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