Insider Secret Saves Thousands on Car Loan Coverage

Insider Secrets to Save on Coverage

One of the key insider secrets to saving on car loan coverage is to consider gap insurance. This type of insurance covers the difference between the car's actual cash value and the remaining balance on your loan if your car is totaled or stolen. Many dealerships offer gap insurance at the point of sale, but you can often find more competitive rates by shopping around with independent insurers.

Another strategy is to improve your credit score before applying for a car loan. A higher credit score can qualify you for lower interest rates, which reduces the overall cost of your loan and, consequently, the cost of your insurance premiums. According to a study by Experian, consumers with excellent credit scores can save up to $5,000 over the life of a typical car loan compared to those with poor credit¹.