Because consumers with damaged credit can be especially sensitive to the cost of car insurance we have put together five more tips to save them money on the full coverage policies required for these auto loans
Auto insurance savings
In our experience too few car buyers with problem credit understand the importance of saving in other areas to help offset the higher interest rates typical of the auto loans offered by high risk lenders. Here at Auto Credit Express we’ve learned that one of the best ways this can be accomplished is by initially financing the right type of vehicle and, secondly, taking a closer look at any related expenses not the least of which is the cost of auto insurance.
We’ve come to this conclusion after spending more than twenty years helping car shoppers with questionable credit find those new car dealers that can give them their best opportunities for approved auto loans.
Saving on car insurance
The first step, as I stated previously, is picking out an affordable car. Financing a subcompact or compact car will not only save you money on interest costs, vehicles of this type are also typically more affordable to insure. With that thought in mind, here are some additional money-saving car insurance tips to consider before making a final car-buying decision.
5 additional tips to save on used car no credit auto insurance
6. The right car discount
While a small car can save on insurance costs, Consumer Reports also suggests that you ask the dealer to show you the “Relative Collision Insurance Cost Information Booklet” produced by the NHTSA as choosing the right model small car could end up saving you even more.
Another suggestion: if you’re looking at two or more vehicles and can’t decide which one to buy, check with your insurance agent before making a final choice – you could save yourself hundreds of dollars a year simply by choosing the model less likely to be stolen or less expensive to repair.
7. Low mileage discounts
Some insurers offer discounts if you drive below certain mileage thresholds each year. Consumer Reports points out that if you have changed jobs and your commute is shorter, you should report this change to your insurer if you haven’t already done so.
8. Electronic payment and billing discounts
With some insurance companies you can save money simply by having your monthly payment electronically transferred from your savings account, checking account or credit card account or if you receive your monthly bill electronically instead of through the mail.
9. Deductible discounts
Higher deductibles mean lower premiums. According to Consumer Reports, “Hiking your deductible from $200 to $500 can cut your premium on collision coverage by 15 to 30 percent. Go to $1,000 and you could save 40 percent.”
In this case, be sure you can come up with the out-of-pocket deductible if you were to be involved in an accident.
10. Teenage no driving discounts
A recent survey from Consumer Reports shows that adding a teenager to your policy can increase your insurance premium by 50 to 100 percent. CR suggests that you “Consider having your teenager wait until age 18 or 19 to get a license, instead of the usual 16 in most states or as young as 14 in some.” Additionally you should “Inform your insurer if the child isn’t licensed or is away at college without a car.”
As we see it
The road to repairing your credit by taking out a higher-risk auto loan begins by choosing an affordable car, but it shouldn’t end there. By taking advantage of as many auto insurance discounts as possible, you’ll give yourself a better chance of emerging from the no credit auto loan process successfully.
Just one more tip: at Auto Credit Express we specialize in helping applicants with damaged credit find those dealers that can give them their best opportunities for auto loan approvals.
So if you’re ready to reestablish your car credit, you can begin now by filling out our online auto loans application.