Compare Best Car Insurance Companies for Financed Cars in 2024 (Top 10 Companies)
Compare best car insurance companies for financed cars, with Allstate, State Farm, and Progressive. Assess their offerings for competitive rates and tailored coverage to safeguard your financed vehicle.
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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: Feb 12, 2024
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: Feb 12, 2024
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
Company Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
Company Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
Pros & Cons
Company Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
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. 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.
Company | Rank | See Pros/Cons | Loan/Lease Payoff | Gap Coverage | Best For |
---|---|---|---|---|---|
#1 | Progressive | Up to 12% | Up to 18% | Lease Payoff | |
#2 | State Farm | Up to 15% | Up to 20% | Gap Coverage | |
#3 | Allstate | Up to 18% | Up to 22% | Car Replacement | |
#4 | Nationwide | Up to 12% | Up to 18% | Gap Insurance | |
#5 | Geico | Up to 10% | Up to 15% | Mechanical Breakdown | |
#6 | Liberty Mutual | Up to 12% | Up to 18% | Replacement Coverage | |
#7 | Hartford | Up to 18% | Up to 22% | RecoverCare Assistance | |
#8 | Travelers | Up to 15% | Up to 20% | Additional Discounts | |
#9 | Safeco | Up to 12% | Up to 18% | Financing Coverage | |
#10 | Farmers | Up to 10% | Up to 15% | Local Agents |
#1 – Progressive: Tailored Safeguard
Progressive stands out as the top choice for financed car insurance, offering tailored coverage and competitive rates, ensuring both affordability and protection.
Brad Larson Licensed Insurance Agent
Pros
- Lease payoff coverage: Offers up to 18% coverage for lease payoff, providing financial security.
- Competitive rates: Up to 12% discounts ensure competitive rates for a range of policyholders.
- Wide range of coverage: Provides various coverage options catering to different needs.
Cons
- Varied rates: Rates may fluctuate based on individual factors, affecting consistency.
- Limited coverage options: Some competitors may offer a broader array of coverage choices.
Read more: Progressive Insurance Review
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#2 – State Farm: Coverage Mastery
Pros
- Gap coverage: Up to 20% coverage for gap insurance, beneficial for financed cars.
- A+ A.M. best rating: Demonstrates financial strength and reliability.
- Low complaint level: Minimal complaints indicate customer satisfaction.
Cons
- Higher average monthly rates: Rates might be relatively higher compared to some competitors.
- Limited online management: Online policy management options may be limited.
Read more: State Farm Insurance Review
#3 – Allstate: Total Protection
Pros
- Car replacement coverage: Up to 22% coverage for car replacement, ensuring comprehensive protection.
- A+ A.M. best rating: Signifies high financial strength and stability.
- Diverse discounts: Offers various discount opportunities, making it budget-friendly.
Cons
- Higher average monthly rates: Rates might be on the higher side for some customers.
- Complex coverage options: Coverage options may be extensive but could be perceived as complex.
Read more: Allstate Insurance Review
#4 – Nationwide: Comprehensive Assurance
Pros
- Gap Insurance coverage: Up to 18% coverage for gap insurance, catering to financed car needs.
- Competitive rates: Offers competitive rates, especially with good driver discounts.
- Nationwide network: Wide network of agents for convenient accessibility.
Cons
- Limited customer reviews: The absence of extensive customer reviews may limit insights.
- Communication challenges: Some customers report communication challenges with the company.
Read more: Nationwide Car Insurance Discounts
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#5 – Geico: Protection Plus
Pros
- Mechanical breakdown coverage: Up to 15% coverage for mechanical breakdown, enhancing comprehensive protection.
- Competitive rates: Offers competitive rates and various discounts for cost-effective coverage.
- Online policy management: Strong online presence for easy policy management and accessibility.
Cons
- Limited coverage options: Coverage options for financed cars may be more limited compared to some competitors.
- Specific eligibility criteria: Some discounts may have specific eligibility criteria, limiting applicability.
Read more: Geico Car Insurance Review
#6 – Liberty Mutual: Replacement Assurance
Pros
- Replacement coverage: Up to 18% coverage for replacement, ensuring comprehensive protection.
- Competitive rates: Offers up to 12% discounts, making it cost-effective for various policyholders.
- Variety of coverage: Provides a range of coverage options catering to different needs.
Cons
- Varied rates: Rates may vary based on individual factors, affecting consistency.
- Discount limitations: Some discounts may not be as extensive compared to competitors.
Read more: Liberty Mutual Review
#7 – Hartford: Assistance Excellence
Pros
- Recover care assistance: Up to 22% coverage for Recover care assistance, offering added support.
- Competitive rates: Up to 18% discounts ensure competitive rates for a range of policyholders.
- Additional benefits: Offers unique assistance coverage, enhancing overall policy benefits.
Cons
- Higher average monthly rates: Rates might be relatively higher compared to some competitors.
- Limited coverage options: Some competitors may offer a broader array of coverage choices.
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#8 – Travelers: Savings Spectrum
Pros
- Additional discounts: Up to 20% additional discounts, providing more savings opportunities.
- Competitive rates: Up to 15% discounts make Travelers a cost-effective choice for certain profiles.
- Variety of discounts: Offers a range of discounts beyond standard ones for personalized savings.
Cons
- Varied rates: Rates may vary based on individual factors, affecting consistency.
- Limited coverage options: Some competitors may offer a broader array of coverage choices.
Read more: Travelers Insurance Review
#9 – Safeco: Financing Security
Pros
- Financing coverage: Up to 18% coverage for financing, catering to the needs of financed cars.
- Competitive rates: Offers up to 12% discounts, making it cost-effective for various policyholders.
- Positive customer reviews: Positive feedback reflects customer satisfaction.
Cons
- Varied rates: Rates may fluctuate based on individual factors, affecting consistency.
- Discount limitations: Some discounts may not be as extensive compared to competitors.
Read more: Safeco Insurance Review
#10 – Farmers: Localized Assurance
Pros
- Local agents: Provides access to local agents for personalized service and convenience.
- Competitive rates: Offers up to 15% discounts, making it cost-effective for certain profiles.
- Variety of coverage: Provides a range of coverage options catering to different needs.
Cons
- Higher average monthly rates: Rates might be relatively higher compared to some competitors.
- Limited online management: Online policy management options may be limited.
Read more: Farmers Car Insurance Review
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What are the best car insurance companies for financed cars?
If you’re not sure where to shop for car 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. USAA is the cheapest car insurance company, but it is only available to military veterans and their immediate families.
Insurance Company | Minimum Coverage | Full Coverage |
---|---|---|
Progressive | $39 | $105 |
State Farm | $33 | $86 |
Allstate | $61 | $160 |
Nationwide | $44 | $115 |
Geico | $30 | $80 |
Liberty Mutual | $68 | $174 |
Hartford | $43 | $113 |
Travelers | $38 | $99 |
Safeco | $27 | $71 |
Farmers | $53 | $139 |
Understanding the nuances of car insurance rates for financed vehicles is pivotal when making informed choices. Examining the average monthly rates reveals distinctive patterns among leading providers. Progressive presents a minimum coverage rate of $39 and a full coverage rate of $105, while State Farm offers competitive rates at $33 for minimum coverage and $86 for full coverage.
Allstate, with a minimum coverage cost of $61 and a full coverage rate of $160, showcases a different pricing structure. Nationwide, Geico, Liberty Mutual, Hartford, Travelers, Safeco, and Farmers similarly exhibit varying rates for both minimum and full coverage. Notably, Safeco stands out with the lowest rates, providing minimum coverage at $27 and full coverage at $71.
Conversely, Liberty Mutual offers more comprehensive coverage at a higher cost, with a minimum coverage rate of $68 and a full coverage rate of $174. This diversity underscores the significance of meticulous rate comparison, enabling individuals to secure optimal coverage aligned with their budget and protection requirements.
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 car 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.
Which smaller car insurance companies are best for financed cars?
Sometimes a smaller car 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 Car
- 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.
Read more: Compare FR-44 Insurance: Rates, Discounts, & Requirements
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.
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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 car 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 car insurance rates for financed cars. For example, Nationwide car insurance in Florida may be cheaper in Iowa and more expensive in Michigan.
What discounts lower car insurance rates for financed cars?
Don’t let the average rates discourage you. Your factors could get you car 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.
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How do I file a car insurance claim for a financed car?
You can start a claim by calling your car 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 car 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 car 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.
Case Studies: Navigating the Best Car Insurance Companies for Your Vehicle’s Security
Case Study 1: Progressive’s Cost-Effective Assurance
John, a conscientious driver with a financed vehicle, sought affordable and reliable coverage. His priority was securing a plan that included lease payoff protection. Progressive’s competitive rates and specialized coverage options made it an ideal choice.
John opted for Progressive’s policy, benefiting from up to 18% lease payoff coverage. With a monthly rate of $105 for full coverage, John not only received financial security but also experienced substantial savings. John’s decision to choose Progressive resulted in comprehensive coverage tailored to his needs at an affordable cost, providing peace of mind throughout his financing period.
Case Study 2: State Farm’s Personalized Gap Coverage
Emily, a new car owner financing her vehicle, sought a provider offering personalized service and strong gap coverage to protect against potential depreciation. State Farm’s local agents provided Emily with personalized guidance, and their gap coverage, offering up to 20%, aligned perfectly with her needs.
With a full coverage rate of $86 per month, Emily secured not only financial protection but also the assurance of localized, attentive service. By choosing State Farm, Emily enjoyed a tailored approach to her insurance needs, experiencing the benefits of personalized assistance and robust gap coverage.
Case Study 3: Allstate’s Comprehensive Car Replacement
Mike, a meticulous driver, prioritized comprehensive coverage, particularly car replacement benefits, to ensure he could swiftly recover from unforeseen accidents. Allstate’s up to 22% car replacement coverage appealed to Mike.
Despite a higher full coverage rate of $160 per month, Mike valued the added protection and benefits, including Accident Forgiveness, contributing to his overall peace of mind. Mike’s decision to invest in Allstate’s comprehensive coverage proved advantageous, offering not only financial protection but also valuable features that aligned with his cautious driving approach.
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 Car 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.
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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
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.