Compare Best Car Insurance Companies for Financed Cars [2023]
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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Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed Insurance Agent
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- 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.
Car Insurance Companies | Monthly Full Coverage Car Insurance Rates |
---|---|
Allstate | $318 |
American Family | $224 |
Farmers | $288 |
Geico | $179 |
Liberty Mutual | $398 |
Nationwide | $229 |
Progressive | $283 |
State Farm | $235 |
Travelers | $287 |
Average | $260 |
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.
Frequently Asked Questions
What are the best car insurance companies for financed cars?
The best car insurance companies for financed cars are GEICO, Nationwide, American Family, and State Farm.
Can I get liability-only car insurance for financed cars?
No, liability-only insurance is not sufficient for financed cars. Full coverage car insurance, which includes liability insurance and additional coverage options, is required.
Which smaller car insurance companies are best for financed cars?
Some smaller car insurance companies known for providing coverage for financed cars are Direct Auto and The General.
Is full coverage car insurance required for financed cars?
Yes, full coverage car insurance is required for financed cars as it protects the lender’s asset.
Should I use a full coverage car insurance calculator?
It is recommended to use a free online quote tool to compare car insurance rates for financed cars based on personal factors, as it provides more accurate results.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.