Car Insurance, Simplified

So which used car insurance coverages are best? Liability, at a minimum. Beyond that, every driver and situation is unique, so it's always a good idea to speak with an insurance professional who can help you understand your risks and needs, and guide you in making the best decision for your specific situation.

In most cases, you should get insurance before you buy a vehicle, as you can’t legally drive an uninsured car. Even if you’re shopping used cars for sale, it’s smart to get an insurance quote as soon as possible. That way, you’ll have an estimate of how much you are expected to pay for car insurance for the particular vehicle model and make.

You can choose a start date a few days before you plan to purchase your vehicle and ask the carrier to confirm that your coverage has started.

It’s best to get insurance before you buy a vehicle. However, if you already own an insured vehicle and are buying another car, some companies may offer a short grace period in which your new-to-you car is covered.

Grace periods last between 7 and 30 days and vary by carrier. During the grace period, you will have to notify your insurance company that you have bought a vehicle and get coverage.

Not all insurance companies offer grace periods, so be sure to talk to your insurance agent before buying a car so you’ll be in the clear.

Overwhelmed by insurance jargon? We tell you in plain English what all the terms mean.

Actual cash value (ACV): the value of your car based on the current cost to replace it minus depreciation.
Adjuster: a person who investigates and settles insurance claims.
Beneficiary: the person or entity designated to receive the proceeds from an insurance policy.
Carrier: another term for an insurance company.
Claim: a formal request to an insurance company asking for a payment based on the terms of the insurance policy.
Collision coverage: insurance that helps pay for repairs to your own vehicle in the event of a collision.
Comprehensive coverage: insurance that pays for damage to your vehicle from events other than a collision, such as theft, fire, or vandalism.
Coverage: the extent of protection provided by an insurance policy.
Declarations: a part of your insurance policy that includes basic information such as the policyholder's name, address, the policy period, the amount of coverage, and the premium amount.
Deductible: the amount you pay out of pocket before insurance coverage kicks in.
Depreciation: the decrease in a car's value over time, typically due to age, wear and tear, or market conditions.
Endorsement: an addition to an insurance policy that changes the terms or scope of the original policy.
Exclusion: certain conditions or circumstances where insurance coverage would not be provided, as outlined in the insurance policy.
Full coverage: a term often used to refer to the combination of comprehensive, collision, and liability coverages.
Gap insurance: coverage that pays the difference between the actual value of a vehicle and the amount still owed on the car loan if the vehicle is totaled.
Indemnity: compensation for damage or loss.
Liability coverage: insurance that provides coverage for injuries or damages to others caused by the policyholder.
Medical Payments (MedPay): coverage for medical expenses if you are injured in an accident, regardless of who is at fault.
Negligence: failure to exercise the care that a reasonably prudent person would exercise in like circumstances.
No-fault insurance: a type of auto insurance that allows policyholders to recover financial losses from their own insurance company, regardless of who is at fault for the accident.
Personal injury protection (PIP): coverage for medical expenses and, in some cases, lost wages and other damages, regardless of who is at fault in an accident.
Policy period: the length of time an insurance policy provides coverage.
Policyholder: the person who owns the insurance policy.
Premium: the amount paid for an insurance policy.
Rate: the cost of a specific amount of insurance coverage, determined by factors such as age, gender, driving record, and location.
Salvage title: a form of vehicle title branding that notes that the vehicle has been damaged and/or deemed a total loss by an insurance company that paid a claim on it.
Subrogation: when an insurance company seeks reimbursement from the at-fault party's insurance company for the claim amount they paid to their insured.
Telematics: technology used in vehicles to monitor driving habits and usage. This data can be used by some insurance companies to offer personalized rates.
Third party: a person or persons other than the policyholder who is involved in an accident.
Tort: a wrongful act leading to civil legal liability.
Total loss: When the cost of repairing a vehicle after an accident is greater than the actual cash value of the vehicle. Usually results in a branded or salvage title.
Underwriting: the process an insurance company uses to determine if someone qualifies for insurance, how much coverage they qualify for, and how much they should be charged for it.
Uninsured/underinsured motorist coverage: insurance that protects you if you're involved in an accident with a driver who doesn't have insurance or whose insurance isn't sufficient to cover the costs.

Car insurance can be as low as $250 per year or as high as $10,000 annually. Your annual insurance rate will be based on your car’s model and make, your age, your driving record, and the coverage you choose.

If you're trying to decide which used car to buy and are considering several vehicles, it's worthwhile to research the average cost of car insurance for each of them to find out which used car insurance option is going to be the best. Insurance rates from one vehicle to the next may sway your decision of which to buy.

Used cars cost less than new ones to insure as a general rule, but there are exceptions. The car's age influences car insurance premiums, but it's not the only factor.

Some car models and makes are more expensive than others. One reason for the rate discrepancy involves parts costing far more for some brands than for others.

For example, a Ford is generally going to have lower premiums than a BMW, all other things being equal. That’s because parts for BMW (and other luxury brands) cost a premium. So, if you choose a luxury car, make sure you're budgeting for higher car insurance rates.

Insuring a high-mileage car is a lot different from insuring a classic or antique car. Classic cars can be worth a lot, and they can't easily be repaired or replaced. As a result, classic car insurance could be expensive, even though the vehicle is old.

In most cases, you should get insurance before you buy a vehicle, as you can’t legally drive an uninsured car. When shopping for a used car, it’s smart to get an insurance quote as soon as possible. That way, you’ll have an estimate of how much you are expected to pay for car insurance for the particular vehicle model and make.

You can choose a start date a few days before you plan to purchase your vehicle and ask the insurance provider to confirm that your coverage has started via email, text message, or a phone call.

It’s best to get insurance before you buy a vehicle. However, if you already own an insured vehicle and are buying another car, some companies may offer a short grace period in which your new-to-you car is covered.

Different insurance companies have different grace periods when it comes to how long you have to get insurance after buying a used car. This period typically lasts between 7 and 30 days.

During that time, you will have to notify your insurance company that you have bought a vehicle and discuss your insurance options.

Not all insurance companies offer grace periods, so be sure to talk to your insurance agent before buying a car so you’ll be in the clear.

New Hampshire let's most drivers opt out of having car insurance. South Carolina and Virginia allow drivers to opt out of coverage by paying a fee.

PrivateAuto is bringing you in-app car insurance via Insurify, an insurance comparison site. Insurify partners with top insurance companies to provide users with a variety of plans and quotes to choose from. Insurify also uses AI technology to help users find the best discounts available.