Bad Credit Car Loan Insurance
by Steve Cypher on Tuesday, June 23rd, 2009JD Power and Associates has recently ranked the customer satisfaction of auto insurance companies and the results are especially important if you are buying a car with a bad credit auto loan.
Car Insurance
One of the important things that we stress here at Auto Credit Express is that during the process of obtaining a bad credit car loan you need to budget not only for your loan, but also for full coverage auto insurance. You also need to know what kind of auto insurance to shop for.
Partial Coverage Auto Insurance
Partial coverage insurance is probably best known as “PLPD” insurance. PLPD stands for “public liability and property damage”. This basic insurance covers the damage your vehicle would cause if you were involved in an accident. It also satisfies the minimum amount of coverage required by your state. It does not cover any damage to the vehicle itself.
Full Coverage Auto Insurance
Full coverage auto insurance (an insurance policy that also contains comprehensive and collision coverage), on the other hand, covers just what the name implies - not only the damage your vehicle would cause in an accident, but also the damage to the vehicle, itself. To make full coverage insurance more affordable, it is available with differing levels of deductibility. The “deductible” is the amount that you as the insurer would contribute to the repair bill. As an example, if you were in an accident and it caused $2000 in damage to your vehicle and you had a $500 deductible collision policy, you would contribute $500 towards the damage, while the insurance company would pay the balance of $1500. If the damage was under $500, you would pay the entire amount. The higher the deductible (the more you would contribute), the lower your insurance premium will be.
What you’ll need
For all types of car loans, including bad credit loans, the banks want their investment (your car) protected with full coverage auto insurance. They will give you their minimum requirements and the deductibles are entirely up to you – just be sure not to set them so high that you couldn’t afford to pay them if you were to become involved in an accident.
The company you choose is also up to you, but J.D. Power and Associates has just come out with a new Buyer Satisfaction study that might help you make up your mind.
J.D. Power New Buyer Satisfaction Survey
“For customers to be especially satisfied with their insurer during the shopping experience, it’s important for them to think about how they prefer to be served - by a local agent, a centralized call center, a Web site or some combination of these three channels,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. “Depending on the channel favored by the customer, one insurer may be a better choice than others based on their strength in that particular channel.
Here is their list of insurers ranked according to overall satisfaction:
The Bottom Line
We have included the Power rankings in order to assist you in your search for an auto insurance company. As previously stated, be sure that your policy includes full coverage on the vehicle that you’re financing with a bad credit car loan. For more information, visit our web site at: www.autocreditexpress.com.
