How to Save Money on Your Car Insurance

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Even with poor credit.

By

Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


, - November 7, 2019

When you get a bad credit auto loan, you must have full coverage car insurance. Insurance can be expensive and increase the overall cost of vehicle ownership. Just how much you’re going to pay for insurance depends on a few factors, such as where you live, your driving record, your age, and the type of car you drive. In some states, your credit score could even impact your insurance rate. You can’t control all of these factors, but you can still save yourself some money with these tips.

How to Save Money on Auto Insurance

Although there are some factors that you can’t control when it comes to auto insurance rates, you do have the power to change a number of things that directly impact your premium.

Here are six different ways you can save money on car insurance:

  1. Work to increase your credit score – In some states, your credit score can be a big factor in determining what your insurance rate is going to be. Generally speaking, the better your score, the lower your rate. To improve your credit score, you can pay down credit card balances, get current on any past-due bills, and continue to make all your payments on time.
  2. Consider how your vehicle choice affects insurance – Crossovers, SUVs, and trucks are usually more expensive to insure compared to sedans. Make sure you also pick something that fits your everyday needs and is within your budget.
  3. Keep your driving record clean – People with fewer accidents and moving violations on their driving records tend to get lower insurance rates.
  4. Increase your deductible – Your deductible is the amount you have to pay on a claim before your insurance coverage kicks in. Raising your deductible lowers your insurance premium, but just make sure you look at the potential savings before making a decision.
  5. Bundle your insurance – If you bundle multiple policies with the same insurance company, it could unlock discounts that the provider offers. Make sure you shop and compare rates across providers for each type of policy you're looking to bundle.
  6. Consider taking a defensive driving course – It may be possible to get a discount for taking a defensive driving course. Make sure that any savings would make it worthwhile when compared to how much it costs to take the course.

As we mentioned, full coverage insurance is required, and varies depending on the state you live in. When saving for your auto insurance, it’s important you know what’s required by your state so you can properly budget ahead of time.

How to Pick the Right Insurance Provider

Our trusted partner can help you find an insurance provider, and we can also give you some pointers on how to choose the right insurance company. To put it simply, picking the right insurance provider comes down to research and rate shopping.

If your state allows insurance companies to base rates on credit score, don’t worry. Since you’re not applying for credit, having an insurance company view your credit score doesn’t affect your credit, unlike a hard pull which lowers your credit score. Make sure you look for the most coverage you can find for the lowest premium possible.

If you already have insurance and want to switch providers for your next car, you must reach out to your current insurance company to let them know you’re switching. You shouldn’t have any issues canceling your policy; in some cases, your provider may even offer you a better deal to keep you from changing insurance companies.

Need Help Getting a Car Loan?

Insurance is a necessity when taking out a bad credit auto loan. If you take the time to improve your credit score and consider the tips we just discussed, you could get a lower premium and save some money.

Once you’ve sorted out the insurance details and are ready to finance your next vehicle, CarsDirect is here to assist. We help consumers find car loans by connecting them to local special finance dealerships. Getting started is easy, just fill out our free and quick auto loan request form and we’ll get right to work for you!

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


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