Saving on auto insurance is great, but credit-challenged consumers should also keep in mind that it’s also important that they’re satisfied with the claims service they receive from their car insurance company.
Consumers with bad credit typically pay more for car insurance because their FICO scores are low. Mercury car insurance study shows vehicles from 2012 to 2015 which were the cheapest to insure – many would fit the budgets of poor credit buyers.
No one expects or wants to be involved in an auto accident. But what if you are, and your car is totaled? What happens next? If you reasonably informed and have a plan, the process that follows a collision can be significantly less stressful.
There is a very real correlation between your credit score and the rate that you’re paying for auto insurance. If your credit is damaged, you may need to shop around for the best price on coverage. And improving your credit rating will save you a lot of money on your premium.
Even drivers with credit issues should ask their car insurance provider about low mileage, marriage, occupational, good student, and defensive driver discounts. Although they must be self-reported (by the driver), taking advantage of even a few of them could save the policyholder a substantial amount of money – but only if they inform the insurance company.
If you’re considering an automobile purchase, you may have already estimated how much you can afford for a car. But, here’s something you may have not considered yet: have you determined how much you can afford for your car insurance? If your current vehicle only has liability and property coverage (commonly known as PL/PD), you will need to factor in a higher premium, because that next car will need to have full coverage.
Consumers with bad credit should note that even the lowest car insurance premium increase of 6 percent in the insuranceQuotes.com study is significant, while an increase of 100 to 200 percent could easily break many budgets. This, in turn, could have the effect of running those borrowers off the road to better credit.