Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Aug 30, 2021

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Key Takeaways

  • You can get full coverage car insurance for as low as $90/mo
  • All financed cars require full coverage car insurance
  • Full coverage insurance is more affordable when you add several discounts

Are you searching for the best auto insurance companies for financed cars? Before you buy car insurance for financed cars, you should shop around with the best car insurance companies that provide the cheapest rates.

Keep reading to find the companies with the most affordable car insurance rates for financed cars and explore various ways you can get cheaper than average insurance for financed cars.

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

What are the best car insurance companies for financed cars?

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

Look at this list to see the best car insurance companies in the United States:

  • Allstate – $318/month
  • American Family – $224/month
  • Farmers – $288/month
  • GEICO – $179/month
  • Liberty Mutual – $398/month
  • Nationwide – $229/month
  • Progressive – $283/month
  • State Farm – $235/month
  • Travelers – $287/month
  • USAA* – $161/month
  • National Average – $260/month

USAA is the cheapest auto insurance company, but it’s only available to veterans and their immediate families. GEICO, State Farm, Nationwide, and American Family are the next cheapest car insurance companies for all other drivers.

According to the National Association of Insurance Commissioners (NAIC), the average full coverage auto insurance rate is $90 a month, but you can push car insurance rates even lower if you’re eligible for several discounts.

With the right deals, you can get your monthly auto insurance rates close to the NAIC average. Continue reading to learn more.

Which smaller car insurance companies are best for financed cars?

A smaller insurance company can provide affordable auto insurance rates, too. Comparing smaller companies could get you more affordable car insurance quotes for financed cars than quotes from providers with the biggest market share.

A few companies aren’t as big as Allstate or Liberty Mutual, but they’re known across the nation. Here’s a list of small companies that compete with the top insurance companies and could be available in your area:

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

Dairyland and Direct Auto are known for non-standard auto insurance, including non-owner car insurance and high-risk car insurance.

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How can I get cheap car insurance rates for financed cars?

Don’t let insurance rates discourage you. Your personal factors could get you a deal on car insurance.

Here’s a list of discounts that can get you access to affordable car insurance 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

A clean driving record is the best way to secure the best car insurance for financed cars. Combine your discounts and you can save hundreds of dollars.

Is full coverage car insurance required for financed cars?

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

Full coverage is the complete package. It includes liability, collision, comprehensive, rental car reimbursement, and other unique coverage options.

Car insurance for financed cars requires full coverage because it protects the lender’s investment. Although you’re the driver, the lender owns the car while you make payments.

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

The answer is no. Liability car insurance is required by law in some states, but full coverage is needed for any car you’re financing.

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

But we recommend that drivers with new model year vehicles maintain full coverage auto insurance.

How do car insurance deductibles work for financed cars?

Full coverage auto insurance will come with deductibles. Deductibles are deposits you pay before a car insurance company pays out a claim.

If you’re the no-fault driver in an accident, the at-fault driver’s car insurance company will cover bodily injury and property damage expenses. Therefore, you won’t need to pay a deductible.

Before an auto insurance company pays your claim, you’ll need to get estimates for damaged property and medical bills.

After you’ve collected all the photos and estimates, the auto insurance company will process your claim check. Or you can have all of the claim money sent to auto repair shops or healthcare centers.

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

Call your insurance company and tell them you want to file a claim. However, you’ll need a few things before an auto insurance claim is processed and paid out.

Here’s a list of things you’ll need to file a claim.

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

Before you file a claim, call 911 to get a police officer to your location. File your car insurance claim after you speak to an emergency operator.

Take photos while you wait for the police. When a police officer or highway patrol officer arrives, they will determine fault. They’ll also provide a copy of the police report.

Contact your auto insurance company and let them know you were in a car accident. They will request a copy of the police report, and you should include any photos you took.

Be patient. Most insurance claims generally take around three to four weeks to resolve, on average.

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How to Find the Best Car Insurance Companies for Financed Cars

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

But the auto insurance companies with the top market share are known to perform better than most insurance companies when it comes to providing the coverage you need.

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.