Best Car Insurance Company for Financed Cars (Discounts & Rates)

The best car insurance companies for financed cars are American Family, GEICO, Nationwide, and State Farm. You can pay at least $82/mo for full coverage car insurance. However, your rates are determined by several characteristics. To get the best rates, you should shop around and compare multiple companies until you find the best auto insurance companies for financed cars.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Aug 31, 2021

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The Highlights

  • On average, you can pay low as $82/mo for full coverage car insurance
  • Full coverage car insurance is required for financed vehicles
  • You can lower your average monthly rates when you qualify for several discounts

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

Don’t worry – our guide explains everything you need to know about getting cheaper than average insurance for financed cars.

After you learn about the best car insurance companies for financed cars, enter your ZIP code into our comparison tool above to compare quotes from multiple companies in your area for free.

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.

Look at our list of the top auto insurance companies in the United States to see which offers the cheapest rates:

  • 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 is only available to the U.S. Armed Forces and their immediate families.

All other companies are available to all qualified drivers. Therefore, GEICO, State Farm, Nationwide, and American Family are the cheapest car insurance companies for financed cars in the United States.

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

Which smaller car insurance companies are best for financed cars?

Sometimes a smaller insurance company can provide cheaper auto insurance rates. Comparing smaller companies could get you more affordable car insurance quotes for financed cars.

A few companies aren’t as big as State Farm and Nationwide, but they’re known across the nation. Check out this list.

  • 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, including non-owner car insurance and high-risk car insurance.

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What discounts lower car insurance rates for financed cars?

Don’t let high auto insurance rates discourage you. Certain personal factors could get you car insurance bargains, including your age and your credit history.

Here’s a 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

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

Is full coverage car insurance required for financed cars?

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

Full coverage is defined as several coverage options added to your liability insurance coverage, such as collision, comprehensive, towing, accident forgiveness, and rental car reimbursement.

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

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

The short answer is no. Liability auto insurance is required by law in some states, but you’ll need full coverage auto insurance for a vehicle you’re financing.

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

We recommend maintaining full coverage car insurance so that you can have optimal coverage.

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

Contact your auto insurance company and tell them you want to file a claim. However, you’ll need a few things before you can get a claim check for bodily injury and property damage.

Here’s a list of items required for your claim.

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

File your claim right after you get off the phone with 911. Call your car insurance company and let them know you were in an accident.

Don’t forget to take photos while you wait for the police. When law enforcement arrives, they will establish fault after an investigation, and you should request a copy of the police report.

Finally, tow your vehicle to the place of your choice.

How do car insurance deductibles work for financed cars?

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

If you’re the no-fault driver, the at-fault driver’s auto insurance company will cover bodily injury and property damage expenses.

Before a car insurance company pays for anything, 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 repair shops or healthcare centers.

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How to find the Best Auto Insurance Companies for Financed Cars

The best auto insurance companies have everything you need for financed cars, but smaller local companies can provide full coverage insurance at cheaper rates.

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

Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

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