Consumer Car Buying Advice Blog

Every little bit helps when it comes to saving money on a bad credit auto loan and here are some tips on how you can save on car insurance.

The cost of car insurance

At Auto Credit Express we’ve spent the last 20 years working with credit-challenged applicants and helping these same consumers reestablish their auto credit. By filling out our online bad credit auto loan application and qualifying for a second chance auto loan at one of our affiliate dealers, they can avoid a tote the note dealer and improve their credit scores. We also try to provide our applicants with the information needed in order to avoid those mistakes that might lead to a possible repossession.

Two of the things we stress are to purchase an affordable vehicle and keep the loan term as short as possible. This means auto loans for bad credit applicants should consider a mid-size or compact car instead of that SUV.

Picking out an affordable vehicle not only saves on finance costs, it can also be more affordable to insure. With that in mind, here are some additional money-saving insurance tips to follow before making that final car-buying decision.

10 Tips on getting cheap car insurance quotes

1. Shop around and do an annual rate check

There are basically three types of auto insurers. Companies that use direct writers (such as Geico and Progressive) have employees who will sell directly to you. Other companies, such as Allstate and State Farm, work through exclusive agents who will sell only their policies. Finally, independent agents are able to sell policies from those companies they are signed up with.

Although direct insurers are usually the most affordable, because these companies are the cheapest they can also be choosey about who they insure. Your best bet, then, is to get quotes from at least one insurer in each category. You can also go online and receive quotes directly from insurers or go to one of the many web sites that will comparison shop for you.

Longevity also helps. According to Consumer Reports, customers who stayed with the same carrier for 10 or more years found that it was tough to beat their current carrier’s rates.

2. Combine your policies

In many cases, buying your homeowners insurance and auto insurance from the same provider will qualify you for an additional discount. But it’s always a good idea to check this out first. If you’re thinking of combining your policies, shop both around to make sure you’re getting the best deal on the combined rate.

3. Pull your credit report first

Even if you don’t have bad credit you should always pull your credit report a few months before shopping for a car. By doing this, you can correct any mistakes in your credit report and raise your FICO score before visiting the dealer.

Many auto insurance companies also look at your credit report, since it’s been proven that drivers with high credit scores tend to file fewer insurance claims. By improving your credit score before you get that new car, bad credit car loan consumers could also be saving themselves money on their auto insurance.

4. Professional associations

Many auto insurers give discounts to associations such as AARP, university alumni, and military groups.

5. Student discounts

A number of insurers will discount your policy if your teenage driver is a good student or has taken a defensive driving course. If your children are away at college and at least 100 miles away, there is also a discount for that. You should also keep in mind that if you have a child that is sixteen or over and doesn’t have a driver license, you are not required to insure that person.

6. Choose the right car

Bad credit car loan shoppers should realize that now is not the time to finance their dream car. But in addition to lowering the monthly payment and reducing interest charges, a small to mid-size sedan can also save on insurance costs. Consumer Reports also suggests that you ask the dealer to show you the “Relative Collision Insurance Cost Information Booklet” produced by the NHTSA.

One additional tip: if you’re looking at two or more vehicles and can’t decide which one to buy, check with your insurance agent before making that final decision – you could save yourself hundreds of dollars a year simply by choosing the model that is less likely to be stolen or is less expensive to repair.

7. Low mileage discounts

Some insurers also offer discounts if you drive below certain mileage thresholds each year. Consumer Reports also suggests that you changed jobs and your commute is shorter, you should this to your insurer.

8. Electronic payment and paperless discounts

You can save money with some insurance companies by having your monthly payment electronically transferred from your savings account, checking account or credit card account. Some insurers will also offer you savings if you receive your monthly bill electronically.

9. Adjust your deductible

Higher deductibles mean lower premiums. According to Consumer Reports, “Hiking your deductible from $200 to $500 can cut your premium on collision by 15 to 30 percent. Go to $1,000 and you could save 40 percent.”

10. Manage your teenage-driver risk

A recent survey from Consumer Reports shows that adding a teenager to your policy can increase your insurance premium by 50 to 100 percent. CR suggest that you “Consider having your teenager wait until age 18 or 19 to get a license, instead of the usual 16 in most states or as young as 14 in some. Inform your insurer if the child isn’t licensed or is away at college without a car.”

As we see it

By choosing an affordable car and taking advantage of as many auto insurance discounts as possible, you will give yourself a better chance of coming through the auto credit repair process successfully.

Here at Auto Credit Express our business is helping people with credit problems find a dealer that can get them approved for car loans with bad credit. Our dealer affiliates work with a broad spectrum of lenders and, since our inception, we have processed over 2,000,000 online bad credit auto loans and our dealers have closed over 1 billion dollars in auto loans.

So if you’re serious about reestablishing your credit, you can begin the process right now by filling out our secure online bad credit car loan application.

Tags: auto credit, Bad Credit, Car Insurance, car insurance quotes, cheap car insurance, credit, credit auto, Credit Repair, credit report, credit score, fico, FICO score, repossession, tote the note

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