Full coverage insurance is required when you're financing a car, and it can be costly, especially if you live in certain areas. Your auto insurance premium is determined by multiple factors, such as your age, driving record, vehicle choice, and where you live, to name a few. Some of these factors are out of your control, but there are still ways you can save money on car insurance that you can explore.
Ways to Save Money on Car Insurance
The overall cost of owning a vehicle and insuring it can be a challenge to those who are struggling with credit and/or who are on a tight budget. Luckily, there are a number of ways you can save money on car insurance, including these six things:
- Improve your credit score – The better your credit score, the better the insurance rate you may qualify for in most states. Take some positive steps toward improving or building your credit score by paying your bills on time and keeping your credit card debt low.
- Consider raising your deductible – If you’re able to budget for it, you can raise your deductible and lower your premium.
- Pick a reasonable vehicle – Pick a car that fits your needs and budget. Typically, SUVs and trucks cost more to insure than sedans and other small vehicles. Depending on the insurance provider, they may even offer deals on hybrids or electric cars if you’re considering buying something more eco-friendly.
- Keep a clean driving record – The more accidents and moving violations you have, the higher your insurance premium typically is.
- Take a defensive driving course – Some insurance companies offer discounts if you take a defensive driving or accident prevention course.
- Look for insurance bundles – If you have home or renters insurance, or own more than one vehicle, your insurance provider may offer a discount if you bundle insurance types or insure multiple cars.
How Do I Pick the Right Auto Insurance Provider?
Finding the best, and right, insurance company for you comes down to doing your research. Whether you want to switch insurance companies or are starting fresh, like with financing a vehicle, you need to rate shop.
You typically have about 14 days to rate shop and pick a deal if your state allows insurance companies to base their rates on your credit score. If you continue shopping beyond the given time frame, you’re going to get hit with multiple hard inquiries on your credit reports, which brings down your credit score.
If you’re planning on switching insurance providers when you finance your next car, you should reach out to your current insurance company and tell them you’re switching. You shouldn’t run into any issues if you notify your insurance provider that you’re canceling your policy. In fact, they may even offer you a better deal in order to keep you from switching.
If you need help finding and comparing rates, you can use our auto insurance resource to view and compare quotes from top providers in your area.
The Bottom Line
You can’t finance a vehicle without full coverage insurance, and it isn’t cheap. However, the more research you do on insurance rates, and the more time you give yourself to improve your credit, the lower the premium you’re likely to receive.
When you’re ready to get the car buying process started, we’re here to help. At Auto Credit Express, we work with an extensive network of special finance dealerships across the country that are signed up with a wide range of lenders that know how to help borrowers dealing with unique credit situations. Get started today by filling out our auto loan request form.