Finding the best car insurance for your bankruptcy auto loan isn't always easy. There are many factors that go into determining your car insurance rate including whether or not the lender requires full coverage, your credit score and whether or not you can combine policies. Today we'll show you how to save money car insurance on your bankruptcy auto loan.
Saving Money on Car Insurance
There are many ways to save money on car insurance for bankruptcy auto loans. Before you can save money though, you need to understand how insurance rates are calculated. Some of the things that insurance companies look at include:
- Whether or not the lender requires full coverage
- The age, make and model of the vehicle
- Your driving record
- Your credit score
- Where you live
- How far you drive to work, school or other places
- Whether or not you can combine policies
While some of these factors may be beyond your control, others can be changed to help you save. One of the easiest ways to lower your insurance rates is through a multi-policy discount. By combining the policy of your new-to-you car with an existing auto or homeowners policy you can usually get a discount.
How Your Credit Score Affects Your Auto Insurance
Many people don't realize that their credit score also affects their auto insurance. Most people who need a car loan while in chapter 13 or after a discharge bankruptcy will find that their auto insurance rates are quite high. This is because most companies will check your credit score before issuing your policy, and will consider you high risk for missing monthly payments because of the bankruptcy.
The good news is that as you make your on-time payments your credit score will go up. As your credit score goes up, your insurance rates should come down. The insurance company should reevaluate your policy each year, and adjust your rate accordingly.
Shop Around to Save Money
Shopping around is going to help you determine which company will help you save the most money on insurance for your vehicle. It's important to get quotes from several different companies before deciding on the right one to go with. In many cases, you'll save money by going through a large company such as Progressive or GEICO, but you should also get quotes from companies such as Allstate and State Farm who use exclusive agents, as well as independent agents who sell many brands.
If saving money is important to you, you can save on car financing after bankruptcy discharge by filling out our easy online application. One of our auto loan specialists will go over your application and contact you with your pre-approval. Then you just have to visit a local car dealership to pick out the car, truck or SUV that fits your budget and your needs.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.