Due to the steep interest rates on high risk auto loans consumers the budgets of borrowers that need these loans are often sensitive to the costs of full coverage auto insurance policies
What we know about car insurance prices
Borrowers with damaged credit need to know how they can partially compensate for the higher interest rates of subprime car loans. Here at Auto Credit Express we know one way this can be accomplished is by choosing the right type of vehicle including what it will cost to insure it.
We believe this is true because we’ve seen what can result when this advice is followed. That’s because for more than twenty years we’ve been helping car buyers with problem credit searching for online car loans find those dealers that can give them their best chances for car loan approvals.
Car insurance savings
This means financing a subcompact or compact car that will not only save money on interest costs, but also be more affordable to insure. With that in mind, here are some additional money-saving car insurance tips to check out before making a final decision.
5 Tips for car insurance savings
1. Comparison discounts
There are three types of car insurers. Direct writers (such as Geico and Progressive) have employees who sell directly to consumers. Others, such as Allstate and State Farm, work through exclusive agents who sell only their policies. Independent agents, the third category, are able to sell policies from every company they represent.
While direct insurers are typically the most affordable, they can also be choosey about who they insure. The best bet is to get quotes from at least one insurer in each category. This can also be done online directly from insurers as well as from the many web sites that will automatically compare rates.
Longevity also helps. According to Consumer Reports, customers who stayed with the same carrier for ten or more years found that it was tough to beat their current carrier’s rates.
2. Multi policy discounts
In most cases buying both homeowners and auto insurance policies from the same provider will qualify policy holder for an additional discount. Consumers thinking of combining policies should first shop both around to verify they’re getting the best deal on the combined rate.
3. Better credit discounts
It goes without saying that borrowers should check their credit reports a few months prior to shopping for a car. Doing this allows them to correct any mistakes and boost their FICO scores before visiting a dealer.
At the same time, in some states auto insurance companies can also check an applicant’s credit report as it’s been shown that drivers with higher FICO scores tend to file fewer claims. By raising their credit scores before they shop for a new car, borrowers will also be saving themselves money on their auto insurance premiums.
4. Association discounts
Don’t overlook associations like AARP, university alumni, and active or retired military. Many auto insurers give discounts to these groups.
5. Student discounts
A number of insurers will discount a policy if a teenage driver – always a cause of higher premiums – is a good student or has taken a defensive driving course. If children are away at college and at least 100 miles away, there is typically a discount for that as well. Finally, if a child is sixteen or over and doesn’t have a driver license, policy holders should inform their insurer.
As we see it
Although it begins by choosing an affordable car saving money on an auto loan shouldn’t end there. By taking advantage of as many car insurance discounts as possible, borrowers can give themselves a better chance of coming through the higher-risk auto loan process successfully.
Another good tip: Auto Credit Express specializes in matching consumers with damaged car credit to dealers that can offer them their best chances for approved car loans.
So if you’re ready to establish your auto credit, you can begin now by filling out our online car loan application.