Why to Get a Bad Credit Car Insurance Now?

Nothing should be distinguished when buying a car

America is fascinated by cars and owning one gives them a great deal of fun. To buy a car today, auto insurances are a prerequisite. But for a borrower with bad credit, a car insurance seems like a pipe dream. Do you have a poor credit score? Is getting a car insurance difficult for you? Are lenders constantly rejecting your auto insurance application?

Well, if the answer is yes to all the questions, then this article can help you get a car insurance even with bad credit. In fact, after reading this written article, you will understand why this is the best time to get a bad credit car insurance to buy your dream car.

Here’s Why Getting a Bad Credit Car Insurance Is Easier Than You Think

Car sales soaring

7.3 million – this is the total number of vehicles sold in the first half of 2012! There has been a 14.8 percent rise in car sales since last year. This sale can be attributed to many factors such as car manufacturers lobbying to sell cars. Even European automakers consider the American market to be profitable. They are vying for higher sales in America because of the problems in their economy. With this new development, you can get newer car models and better incentive programs. The easy flow of credit also played a major role.

Lowest late payment rates

The default rate is the percentage of auto insurances that are not repaid by borrowers. TransUnion reported in its 2012 first quarterly report that auto insurance delinquency has decreased to 0.36 percent which is significantly lower than the 0.46 percent result of the fourth quarter of 2011. These numbers prove that borrowers are more diligent in making regular payments.

TransUnion also reported a rise in lending as well as leasing in the non-core risk segment. With lower default rates, lenders can put more confidence in the equation. Now they understood that people would definitely pay. When the mood is positive, getting a bad credit car insurance becomes easier.

Investor confidence

Investors buy auto insurance securities because they are relatively safe and profitable. They perform better than mortgages because cars are a major requirement for us. We may give our house but a car is essential to our work. This makes them a safe bet. A final example is how companies like GM Financial, Santander Consumer USA, and other lenders issued $10 billion in ABS-related subordinated auto insurances. That’s a 20% jump from last year.

This deal proves that auto lenders will now offer more bad credit auto financing options as it has become a profitable option for them. They can easily accumulate your insurance as securities and profit from it. So, auto finance companies are now taking the risk of offering subordinated credit auto insurances.

All of these factors lead to one conclusion that lenders are now interested in providing you with financing for your bad credit car. It is no longer difficult to get a insurance. It’s not hard to buy your dream car anymore!

Are you ready to get a car insurance for bad credit?

Before getting a car insurance for people with bad credit, you should consider these important points so that you do not doubt your decision later.

1. It is important to choose an inexpensive but effective vehicle. A used car is the least expensive option with you. It is an ideal choice because its depreciation rate is lower than that of new cars. While choosing a car, do not forget to check its address. Get it checked out by a trusted mechanic.

2. If this is the first insurance you take out after your grade drops, you should be prepared to pay a higher interest rate.

3. Choose a shorter car insurance term so that it does not increase any chance of getting a reverse car insurance.

4. Regular payments are absolutely essential to improve your credit score and to avoid further deterioration. If you make the payments on time, you’ll get better interest rates next time.

5. Most lenders have a lock-up period during which you cannot refinance or exchange your car. Usually these are the first six months or the first year of the insurance term. Therefore, do not choose any car insurance that makes you feel uncomfortable because you will find it for some time. Take the time to analyze and choose a quote for a bad credit car insurance.

These important signals are very crucial in arriving at a good decision. You must understand that bad credit car insurances are easily available but you can make it more comfortable by remembering these points.

Now that you know how easy it is to get a bad credit auto insurance, don’t wait anymore. Once you have considered all the points mentioned in the above paragraph, you should embark on the journey of getting back your good old credit.