Best Car Insurance Companies for Financed Cars (2021)

The best car insurance companies for financed cars are GEICO, Nationwide, American Family, and State Farm. You can pay as little as $82/mo for full coverage auto insurance. However, your rates are determined by personal factors. To secure the best rates, you should shop around and compare until you find the best auto insurance companies for financed cars.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Aug 31, 2021

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Here's What You Need to Know

  • Full coverage car insurance is required for financed vehicles
  • When you qualify for several discounts, you can pay lower than the average monthly rate
  • On average, you can pay low as $82/mo for car insurance

Are you searching for the best auto insurance companies for financed cars? Before you buy car insurance for financed cars, you’ll need to know which companies provide the cheapest rates.

Don’t worry – our guide has everything you need to know about getting auto insurance while you make payments to your financed car.

After you learn about the best car insurance companies for financed cars, enter your ZIP code in the free online quote tool to compare multiple companies in your area.

What are the best car insurance companies for financed cars?

If you’re not sure where to shop for auto insurance, you should start with the best insurance companies in the United States.

Here’s a list of the top car insurance companies in the nation and their average monthly rates.

Average Monthly Full Coverage Car Insurance Rates by Company
CompaniesMonthly Full Coverage Auto Insurance Rates
Allstate$318
American Family$224
Farmers$288
GEICO$179
Liberty Mutual$398
Nationwide$229
Progressive$283
State Farm$235
Travelers$287
USAA$161
Average$260
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USAA is the cheapest car insurance company, but it is only available to military veterans and their immediate families.

All other companies are available to all qualified drivers. Therefore, GEICO, State Farm, Nationwide, and American Family are the cheapest companies for drivers.

You can drive auto insurance rates even lower if you qualify for discounts. According to the National Association of Insurance Commissioners (NAIC), the average full coverage rate is $90 a month.

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Which smaller car insurance companies are best for financed cars?

Sometimes a smaller auto insurance company can provide cheaper rates. When you use our free online quote tool, you could be matched up with smaller companies in your local area.

Here’s a list of companies that aren’t as big as State Farm and Nationwide, but they’re known across the nation.

  • Erie Insurance
  • North Carolina Farm Bureau
  • Direct Auto
  • The General
  • Auto-Owners Insurance
  • Esurance

Direct Auto and The General are known for non-standard car insurance, which is defined as non-owner car insurance or SR-22/FR-44 insurance.

Is full coverage car insurance required for financed cars?

The short answer is yes. Whenever you’re making payments on a vehicle, you’ll need full coverage. But what is full coverage car insurance?

The full coverage definition means you have liability insurance with several other coverage options, such as collision, comprehensive, rental car reimbursement, and emergency roadside assistance.

Car insurance for financed cars requires full coverage because it protects the asset of the lender.

Although you’re the driver, the finance company still owns the vehicle while you make payments.

Can I get liability-only car insurance for financed cars?

The answer is no. Liability car insurance is required, but you’ll need full coverage, which includes liability auto insurance.

On average, liability-only insurance is 51% cheaper than full coverage. After you pay off your vehicle, you can switch to liability-only coverage.

However, we strongly recommend maintaining full coverage insurance, especially if your vehicle is at least five years old.

Should I use a full coverage car insurance calculator?

Full coverage insurance calculators aren’t as effective as our free online quote tool. With our free comparison tool, you can access car insurance quotes for financed cars based on your personal factors.

Several personal characteristics determine whether affordable car insurance for financed cars is available.

The most significant factors are age, location, driving record, and credit history. Each factor impacts auto insurance rates for financed cars.

For example, Nationwide auto insurance in Florida may be cheaper in Iowa and more expensive in Michigan.

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What discounts lower car insurance rates for financed cars?

Don’t let the average rates discourage you. Your factors could get you auto insurance deals.

Check out this list of discounts that can help you get affordable car insurance rates for financed vehicles.

  • Good Credit Discount – Up to 35%
  • Multi-Vehicle Discount – Varies
  • Multi-Policy Discount – Up to 25%
  • Safe Driver Discount – Up to 40%
  • Usage-Based Insurance Discount – Varies

When you maintain a clean driving history, you can secure cheap car insurance rates for financed cars. Stack your discounts, and you can save hundreds of dollars per year.

How do I file a car insurance claim for a financed car?

You can start a claim by calling your auto insurance company and tell them you need to file a claim. But there are a few things you need before you can get a claim check for bodily injury and property damage.

  • Name
  • Address
  • Policy Number
  • Police Report
  • Photos of Damage
  • Copy of Medical Bills
  • Pay a Deductible
  • Estimates for Repairs

You should file a claim right after you get off the phone with 911. Contact your auto insurance company and let them know you were in an accident.

Next, you should take photos. When the police show up to establish fault, you’ll need a copy of the report. Tow your vehicle to the place of your choice.

Since you have full coverage, you’ll have to pay a collision deductible if you’re at fault in the accident.

If you’re not at fault, the at-fault driver’s car insurance company will cover bodily injury and property damage costs.

Before an auto insurance company pays for anything, you’ll need to get estimates for property damage, or you’ll have to give them a copy of your medical bills.

After all the photos and estimates, you should be ready to receive your claim check. Or you can have all of the claim money sent to repair shops or healthcare centers.

Best Car Insurance Companies for Financed Cars: What’s the bottom line?

The best insurance companies have everything you need for financed cars. Smaller companies can provide full coverage, also.

But the car insurance companies with the top market share are known to perform better than most companies.

Now that you know more about the best car insurance companies for financed cars, use our free online quote tool to compare multiple companies in your area.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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