Auto Financing & Auto Insurance

Keep these things in mind when you’re looking for auto financing for your vehicle:

• If a deal sounds too good to be true, it probably is.
  
• Zero-financing and other offers may not apply to you unless you have excellent credit.
  
• Some car dealerships that arrange financing mark up their rates by 2 or 3%, which can cost you thousands of dollars more to pay back. According to the Consumer Federation of America, marked-up dealer financing affects 1 out of 4 people— and it’s perfectly legal!
  

How can you get the best deal on auto-related costs, like financing and auto insurance?

• Use the Internet to research prices, which will help you negotiate the best price. Web sites like Yahoo! Autos and The Motley Fool can help you figure out vehicle prices and financing.
  
• Never be afraid to leave a dealership or seek another bank or credit union to handle your financing. All of these companies compete for your business— so you should never feel pressured to buy.
  
• Obtain a copy of your credit report that includes your credit score and use it as a bargaining tool.
  
• Apply these same principles when you shop for auto insurance. Shop around and always look for the best deal. (You can't put a price on loyalty!)
  

Esurance makes it easy to shop around. Find out if you save with us when you get your auto insurance quote today!
In addition to great rates and reliable coverage, Esurance has tools and information to help you understand your auto insurance coverage better. Use the Esurance FAQ for answers to your auto insurance-related questions. Get a customized report from our interactive, auto insurance planning tool, the Esurance Coverage Counselor to see which levels of coverage suit you best.

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10 cars most and least expensive to insure

If you're shopping for a new car, chances are you're considering things such as gas mileage, vehicle size, comfort and even that all-important stereo. But have you checked on the cost of insurance?

"The choice of the car itself is going to affect, in particular, what you will spend for comprehensive and collision," says Jeanne Salvatore, senior vice president of public affairs for the Insurance Information Institute. That makes shopping around for insurance, as you shop around for that car, a good move.

Why some cost more
Collision damage costs are one of the main factors in differentiating the cost of insuring one type of car over another, says Rader. To a lesser extent, you also want to look at how attractive the car is to thieves.

Vehicles that top the insurance-cost list tend to be either high horsepower, high dollar or expensive to repair, Rader says. An expensive choice: "Sporty cars that are favored by young drivers who are risky drivers, so they are crashing a lot."

Higher horsepower means the driver is more likely to be going faster and getting into more accidents. That will send insurance rates up for everyone who owns a similar car.

Many of the vehicles that are expensive to insure "share a common problem, and that is horsepower," says Kim Hazelbaker, a senior vice president with the Highway Loss Data Institute.

Size matters
Some think that a smaller, more maneuverable car is able to outrun trouble and avoid crashes. It's a myth, says Rader.

"When you look at the statistics and insurance claims, small sports cars tend to be in more crashes," he says. Adding to the problem: "They tend to be engaged in faster driving."

From a statistical standpoint, the safest models tend to be the full-sized family-sedan-type cars, he says.

A few other special circumstances can also send rates through the roof. If a car is a popular target for thieves, your insurance company might charge you higher rates to keep it covered.

If you're driving a high-priced car, it will likely cost more to fix after a collision. As a result, your insurance bill will go up when you add it to the policy, Rader says. Likewise, some luxury or high-end cars feature aluminum body panels that are more expensive to fix or replace than sheet metal, he says.

One other factor to consider: How much damage is your vehicle likely to inflict in a crash?

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