The words “cheap” and “auto insurance” really should not be used together, especially when shopping around for the lowest insurance prices for used cars. To save some money, let’s go over a few of the things that have an impact on car insurance premiums, and figure out some ways to cut the cost of your next policy.
For pre-owned vehicles, one of the largest components that help determine the price you pay for insurance is where your car is garaged. Areas with high crime rates or more dense population tend to have more expensive auto insurance rates, whereas areas with less congestion have the benefit of cheaper car insurance.
The information below ranks the most expensive areas in Wisconsin for used cars to buy car insurance in. Milwaukee comes in at #1 with an annual cost of $1,396 for car insurance, which is about $116 per month.
|Rank||City||Average Per Year|
|19||Fond du Lac||$995|
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Price information shown is comparative as vehicle location can influence insurance rates substantially.
The vehicle you are seeking coverage for is one of the largest factors when quoting cheap car insurance for used cars. Vehicles with economical engines, an excellent safety record, or a low likelihood of liability claims will cost less to insure than high performance models.
The table below features insurance premiums for a selection of the cheaper vehicles to buy coverage for.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLT 4WD||$1,689|
|Honda CR-V EX-L 4WD||$1,914|
|Toyota Tacoma Double Cab 4WD||$1,952|
|Dodge Grand Caravan Hero||$1,961|
|Hyundai Elantra SE Touring Station Wagon||$2,016|
|Honda Accord EX-L 4-Dr Sedan||$2,026|
|Toyota Corolla LE||$2,059|
|Jeep Grand Cherokee Limited 4WD||$2,097|
|GMC Sierra 2500HD SLE Extended Cab 4WD||$2,104|
|Chevrolet Equinox LTZ 2WD||$2,097|
|Chevrolet Impala LS||$2,100|
|Ford Focus SE 4-Dr Sedan||$2,109|
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Data variables include single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Wisconsin minimum liability limits. Discounts applied include claim-free, multi-vehicle, multi-policy, safe-driver, and homeowner. Premium amounts do not factor in zip code location which can change price quotes noticeably.
Looking at the rates, you can assume that makes and models like the Ford Escape, Honda CR-V, Toyota Tacoma, Dodge Grand Caravan, and Toyota Prius are likely to be the less-costly vehicles to insure for pre-owned vehicles.
The diagram below shows how choosing a deductible can influence insurance rates when researching cheap insurance for used cars. The data assumes a married female driver, comp and collision included, and no policy discounts are applied.
A 30-year-old driver could lower rates by $182 a year by switching from a $100 deductible to a $500 deductible, or save $276 by switching to a $1,000 deductible. Younger drivers, like the Age 20 category, could possibly save as much as $390 or more by choosing a higher deductible. If you do decide to increase your deductibles, it is necessary to have plenty of savings on hand to offset the extra out-of-pocket expense. That is the one drawback of using higher deductibles.
Types of discounts on Milwaukee insurance rates
Auto insurance companies that provide coverage for used cars may have policy discounts that could potentially reduce rates by as much as 40% or more if you meet specific criteria. A few of the larger companies and a partial list of their discounts are detailed below.
- State Farm policyholders can earn discounts including student away at school, multiple autos, driver’s education, Drive Safe & Save, defensive driving training, anti-theft, and accident-free.
- Nationwide offers discounts including defensive driving, easy pay, anti-theft, good student, and business or organization.
- GEICO has savings for defensive driver, membership and employees, multi-vehicle, driver training, federal employee, and daytime running lights.
- AAA may have discounts that include multi-policy, good student, AAA membership discount, good driver, education and occupation, anti-theft, and multi-car.
- 21st Century may offer discounts for air bags, defensive driver, student driver, early bird, anti-lock brakes, automatic seat belts, and driver training.
- The Hartford may include discounts for driver training, good student, air bag, anti-theft, vehicle fuel type, and defensive driver.
The chart below illustrates the difference between auto insurance rates with and without discounts applied to the rates. The premiums are based on a female driver, a clean driving record, no claims, Wisconsin state minimum liability limits, full physical damage coverage, and $100 deductibles.
The first bar for each age group shows premium with no discounts. The second shows the rates with homeowner, multiple vehicle, marriage, accident-free, claim-free, and safe-driver discounts applied. When discounts are applied, the average amount saved each year on insurance for used cars is 27% or $381.
Reckless driving habits raise insurance rates
The easiest way to find the most affordable insurance premiums for pre-owned vehicles is to be a safe driver and maintain a clean driving record. The diagram below highlights how traffic violations and at-fault collisions drive up car insurance costs for different categories of driver ages. The prices are based on a single female driver, comprehensive and collision coverage, $1,000 deductibles, and no policy discounts are applied.
The data above shows the average cost of auto insurance in Wisconsin per year with no accidents or violations is $1,253. Receive one speeding ticket and the average cost swells to $1,422, an increase of $169 each year. Now add one accident along with the one speeding ticket and the annual cost of insurance for used cars goes up to an average of $1,887. That’s an increase of $634, or $53 per month, just for not driving safely!
How to find more affordable insurance for used cars
The list below summarizes many money-saving suggestions that can help drivers find lower-cost coverage.
- If your vehicles are older, consider dropping full coverage
- Buying your home and auto policies from the same company can earn a discount
- Higher credit scores may earn you cheaper rates
- Save money by staying claim-free
- Buy safe vehicles
- Increase your physical damage deductibles
- Compare quotes from other companies often
That last piece of advice is very critical, as we discussed in this article. Prices can change considerably in a year, so don’t hesitate to change to a new company if a better rate can be found.
Many drivers have brand loyalty and that’s fine, but is isn’t recommended if your bullheadedness ends up costing you a small fortune. In less than five minutes you could compare rates and find cheaper car insurance for used cars in Milwaukee.
If you wish to have a professional recommendation when comparing insurance rates for pre-owned vehicles, the professional agents shown below are a good start to help you determine which auto insurance coverages would be the best in your situation. To find a Milwaukee insurance agency closest to you, click the button at the bottom or click here to compare rates now.
Farmers Insurance – Roger Channing
4369 S Howell Ave #201 – Milwaukee, WI 53207 – (414) 482-9400
Len Cratic Jr – State Farm Insurance Agent
10721 W Capitol Dr #127 – Milwaukee, WI 53222 – (414) 527-4288
Brew City Insurance
2937 S Chicago Ave – South Milwaukee, WI 53172 – (414) 762-6600
Santiago Insurance Agency
828 W Historic Mitchell St – Milwaukee, WI 53204 – (414) 727-8284