Because consumers with poor credit are especially sensitive to auto insurance prices we have a few tips that can save them money on the full coverage policies required for their car loans
Helping you save money
If you're someone with questionable credit you may be wondering how you can offset the higher interest rates found on the auto loans underwritten by subprime lenders. Here at Auto Credit Express we believe that one way you can do this is by first picking the right type of vehicle and then taking a closer look at your car insurance.
We've come to this conclusion after spending the past two decades helping car buyers with problem credit find those new car dealers that can give them their best opportunities for car loan approvals.
Saving on auto insurance
As I stated previously, picking out an affordable car is the first step. Financing a subcompact or compact car will not only save you money on interest costs, vehicles like this can also be more affordable to insure. With that in mind, here are some additional money-saving auto insurance tips to follow before making that final car-buying decision.
5 Tips for used car no credit auto insurance savings
1. Comparison discounts
There are basically three types of car insurers. Direct writers (such as Geico and Progressive) have employees who will sell directly to you. Others, such as Allstate and State Farm, work through exclusive agents who will sell only their policies. The third category, independent agents, is able to sell policies from as many companies as they are signed up with.
While direct insurers are typically the most affordable, they can also be particular about who they insure. Your best bet 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 compare rates 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. Multi policy discounts
Typically, buying your homeowners and auto insurance policies from the same provider will qualify you for an additional discount. At the same time, you should check first. If you're thinking of combining your policies, shop both around to verify you're getting the best deal on the combined rate.
3. Better credit discounts
It goes without saying that you should check your credit reports a few months prior to shopping for a car. Doing this allows you can correct any mistakes and raise your FICO scores before visiting dealers.
In some states auto insurance companies can also check your credit report as it's been shown that drivers with higher FICO scores tend to file fewer claims. By raising your credit scores before you shop for that new car, you'll also be saving money on your 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 your policy if your teenage driver – always a cause of higher premiums - 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. Finally, if your child that is sixteen or over and doesn't have a driver license, you should inform your insurer.
The Bottom Line
It begins by choosing an affordable car but it shouldn't end there. By taking advantage of as many car insurance discounts as possible, you'll give yourself a better chance of coming through the used car no credit auto loan process successfully.
One more tip: here at Auto Credit Express we match applicants that have experienced car credit problems with 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 loans application.