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How to Save on Car Insurance with Poor Credit

A report released last year by a government agency demonstrates that choosing the right car can save money even for consumers with less than perfect credit
How to Save on Car Insurance with Poor Credit
Understanding the process

Car shoppers with credit problems might want to first check out the results of a study, released last year, on vehicle repair costs, that was done by the National Highway Traffic Safety Association (NHTSA) before selecting a new or used car.

Here at Auto Credit Express we mention this because for the last two decades we’ve been helping applicants with poor credit scores find dealers for their best opportunities for approved car loans.

We also try to educate applicants on subjects ranging from no credit check auto loans to today’s topic, how the differences in insurance claims costs can affect the overall cost of car ownership especially when financing vehicles with high risk car loans.

Car insurance

Since full coverage auto insurance can often add a significant amount to monthly car operating costs, finding a vehicle that is comparatively less expensive to insure can help lower the overall expenses of subprime auto loans.

Back in early 2012, the NHTSA issued a Comparison of Insurance Costs report, covering 2009 to 2011 model year vehicles. The report listed the average collision claims costs of different makes and models – making it an especially valuable tool for credit-challenged buyers on a limited budget.

Comparison cost report

NHTSA first set a cost basis of 100 for an average vehicle noting that insurers consider these scores in adjusting a “base rate” for collision premiums – although this doesn’t necessarily directly correlate to the price of insurance coverage for a particular model.

The report also notes that a vehicle’s collision loss experience is unlikely to affect the overall premium by more than 10 percent. Still, whatever money you can save can reduce the overall costs of car ownership.

With this in mind we sifted through the report and picked the three most affordable categories and vehicles for buyers looking to reestablish their car credit:

Mini Cars

Two-Door Models – average score 93

Toyota Yaris 95
Hyundai Accent 105

Four-Door Models – average score 114

Toyota Yaris hatchback 89
Mazda2 91
Ford Fiesta 98
Toyota Yaris 112
Kia Rio 115
Chevrolet Aveo 127
Hyundai Accent 127

Small Cars

Two-Door Models – average score 137

Volkswagen Golf 106
Kia Forte Koup 117
Scion tC 137
Honda Civic 142

Four-Door Models – average score 114

Chevrolet Cruze 77
Hyundai Elantra 92
Volkswagen Golf 93
Kia Forte 100
Ford Focus 104
Honda Civic 110
Nissan Versa hatchback 116
Mazda Mazda3 116
Toyota Corolla 116
Nissan Sentra 120
Mitsubishi Lancer 4dr hatchback 120
Nissan Versa 128
Suzuki SX4 139
Mitsubishi Lancer 170

Station Wagons – average score 94

Kia Forte 88
Scion xB 89
Hyundai Elantra 93
Mazda Mazda3 94
Dodge Caliber 94
Kia Soul 96
Scion xD 99
Nissan Cube 101
Suzuki SX4 119

Midsize Cars

Four-Door Models – average score 101

Chrysler 200 57
Chevrolet Malibu (2012) 90
Ford Fusion 99
Mercury Milan 102
Dodge Avenger 109
Mitsubishi Galant 119

The Bottom Line

While collision loss experience is just one point insurers consider when calculating the cost of a premium, it’s also a good place to start when considering a particular car, especially if you have a number of different models to choose from.

Another good thing to remember is that Auto Credit Express specializes in matching applicants with bad credit with new car dealers that can offer them their best opportunities for car loan approvals.

So if you’re ready to begin reestablishing your car credit, you can begin now by filling out our online auto loans application.

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