How consumers with problem credit can keep their car insurance costs under control while financing a vehicle with a high risk auto loan

What we know

Here at Auto Credit Express our experience leads us to believe that one of the keys for people with poor credit to successfully completing online car loans is to keep the loan term as short as possible while making sure the total monthly car budget is as affordable as possible.

To do this, consumers with bad credit should consider taking out a car loan on nothing larger than a compact or, at most, mid-size vehicle. This will keep the monthly payments, as well as the overall finance charges, reasonably affordable.

In addition to being more affordable, these types of vehicles are usually more affordable to insure. That said, not long ago we came across a number of tips from that could save you even more money. So here they are along with our own notes (in bold) for credit-challenged car buyers.

Cheap auto insurance tips from

Older car? Drop collision: Have a car that's 7 or 8 years old or worth less than $2,500? Time to think about taking the risk and dropping comprehensive and collision from your auto insurance quote. Chances are your deductible is closing in on the value of your car and a major collision will send you to the dealership, anyway.

Note: if you’re financing a vehicle you must have both comprehensive and collision coverage.

Buy home and auto with different companies: With everything being bundled today - from cell phones to Internet and cable TV - you'd think that having your home and auto insurance with the same company would save money. But, do your research and you may discover that having separate policies will be cheaper.

Minimum liability? Not enough: You may think you can only afford the minimum coverage required by law. But, there's a good chance those minimums won't come close to covering the costs of a serious accident - which means you could be paying WAY more than you bargained for if you're at fault.

Shop around for lower rates: A State Farm agent only quotes State Farm. Same for Allstate. So what are the chances their agent will tell you to shop around for the best deal? Even independent agents only represent a few auto insurers. Shopping online allows you to fine-tune the deductibles and coverage you want and then compare auto insurance rates side-by-side.

Go green and keep some green: Look for auto insurance quotes from companies that offer "green" discounts for driving a hybrid, choosing paperless statements or electronic payment plans. Even signing your policy with an e-signature will help.

Note: most hybrids are too expensive to finance with a subprime auto loan, although you can take advantage of the other money saving tips here.

Consider paying that claim yourself: If you've backed into the garage, think twice about asking your company to repair it. Besides the possibility that your rates will go up at renewal, that small claim might affect rates next time you shop. An accident can only affect your rates for three years, but many companies will look back five or seven years when deciding if they want to offer you a quote.

Don't buy that turbo convertible: All vehicles are not created equal. Small or large, old or new, the type of car you drive will affect your auto insurance rate, often based on algorithms auto insurance companies use to determine how expensive it might be to pay a claim.

Teenager turned 16? Don't add them to your policy - yet: If your teen is 16 but not a licensed driver, you're not required to add them to your insurance policy. You're only required to insure them once they become licensed to drive. But check. Some policies may require it.

As we see it

Our thanks to for some this money-saving advice.

One more tip: Auto Credit Express really does help people that have experienced difficulties with their auto credit find those new car dealers that can offer them their best chances for approved car loans.

So if you find yourself in this situation and you're ready to reestablish your car credit, you can begin now by filling out our online car loan application.