A recent report detailing car insurance claims costs could be helpful when picking a vehicle for approved auto loans.
Our experience
One item often ignored when choosing a car for poor credit car loans is what it will cost to cover it with full coverage car insurance.
We know this is true after having spent nearly two decades in all aspects of bad credit auto sales here at Auto Credit Express.
To clarify the terrible credit auto loans process we even built a web site so applicants can research things such as tote the note dealers and credit scores as well as the current topic, car insurance.
Bad credit car insurance
Since another large expense in addition to a monthly car note is often the auto insurance premium, finding a vehicle that is comparatively less expensive to insure can help lower the overall cost of a bad credit car loan.
Earlier this year, the NHTSA (National Highway Traffic Safety Association) issued a Comparison of Insurance Costs report, covering 2008 to 2010 models, giving the average collision claims costs of different makes and models and making it a valuable tool for car shoppers.
NHTSA report
NHTSA first sets a cost basis of 100 for an average vehicle while stating that insurers do consider the scores in adjusting a “base rate” for collision premiums – although this doesn’t necessarily directly correlate to the price of insurance coverage for a particular model.
The report also notes that collision loss experience is unlikely to affect the overall premium by more than 10 percent.
The following scores are for a number of cars, many of which may fit the budgets of credit-challenged buyers:
Mini Cars
Two-Door Models – average score 93
Toyota Yaris 93
Hyundai Accent 104
Four-Door Models – average score 119
Toyota Yaris hatchback 104
Kia Rio 117
Hyundai Accent 119
Chevrolet Aveo 120
Toyota Yaris 121
Small Cars
Two-Door Models – average score 140
Volkswagen Golf 90
Kia Forte Koup 99
Ford Focus 111
Honda Civic 139
Scion tC 186
Four-Door Models – average score 117
Volkswagen Golf 78
Kia Forte 96
Honda Civic 105
Ford Focus 105
Mazda Mazda3 112
Toyota Corolla 116
Nissan Versa hatchback 117
Hyundai Elantra 119
Nissan Sentra 123
Nissan Versa 135
Suzuki SX4 144
Mitsubishi Lancer 179
Station Wagons – average score 94
Hyundai Elantra 78
Mazda Mazda3 86
Nissan Cube 88
Dodge Caliber 90
Scion XB 90
Kia Soul 92
Scion xD 97
Toyota Matrix 100
Midsize Cars
Four-Door Models – average score 103
Chrysler Sebring 93
Chevrolet Malibu 94
Ford Fusion 98
Mercury Milan 102
Dodge Avenger 111
As we see it
While vehicle type is just one point that insurers consider when calculating premium costs, it’s a good place to start when considering a particular vehicle for a bad credit auto loan.
Also remember that Auto Credit Express can help you find a dealer for your best chance at an approval for a problem credit auto loan.
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