Low Down Payment Car Insurance

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Low Down Payment Car Insurance

When you need insurance coverage, but simply can’t afford a huge deposit, low down payment car insurance is almost certain to be the answer. This will allow you to get the insurance you need to keep your vehicle on the road, without going broke in the process. In some cases, drivers have paid as little as $5 to get their automobile insurance policy started.

Low Down Payment Car Insurance

Why Do Car Insurance Companies Require a Down Payment or Deposit?

Insurance policies are considered to be contracts. Most of these contracts do require a deposit or down payment, which is the reason why car insurance companies do too.

However, in an industry filled with competitors, some carriers have chosen to offer no deposit or zero down payment car insurance policies to attract customers. This is perfect for anyone, like yourself, who may need immediate coverage, but also need some flexibility in regards to payment options. In these cases, you are usually able to split up your insurance bill into 12 monthly payments. Your policy goes into effect when the first payment is made.

Companies with the best Low Down Payment Car Insurance offer

There are so many factors that go into premium pricing. it’s also important to note that not everyone will qualify for a $20 down car insurance policy. This is why it’s critical to shop around for the best rates and compare multiple providers before you buy.

There are several companies that offer no down payment policies in select states. This includes:

  • Kemper
  • State Farm
  • Allstate
  • Farmers
  • Safe Auto 
  • Progressive 

Many direct insurers have some of the best car insurance options. Compare rates online now by entering your zip code.

Who Qualifies for low down payment car insurance?

Fortunately, most people are eligible for low down payment car insurance that does not require large payment upfront. You’ll simply need to ask if this is an option when you first contact the company. You may find that it is easier to start your search for no down payment auto insurance online. Most, if not all, companies will provide a free online quote. Then, you can either complete the process online, call an agent yourself, or have an agent call you.

You should know that your credit score can affect your eligibility. If you have good credit and good driving history, you should have no problem getting a car insurance policy started without having to pay a big down payment.

The Pros and Cons of No Down Payment Car Insurance

It almost goes without saying that the biggest benefit associated with zero down insurance coverage is the fact you can get a policy without spending a ton of money out of pocket. As an added bonus, it will allow you to easily make the switch from one insurance company to another.

Of course, there are cons to go along with all the pros. For example, you will be expected to pay more each month than you would pay by making a down payment. This means that if you do have the cash to pay your full premium upfront, you should.

What are Your Options When Paying for Coverage?

Low down payment car insurance providers almost always have two payment options for customers wanting to pay for their policy. The first option is to make a full payment for the entire amount owed up front. The length of the policy may be 3, 6, 12, or 18 months. The other option is to break the cost of the policy up into pre-planned payment amounts. These payments are usually made either monthly or quarterly.

It’s no surprise that insurance companies almost always prefer to have the full premium paid up front. To encourage customers to do this, they will offer discounts for full payments. This also eliminates any processing fee that would be applied to your payment plans. As a result, you can save a significant amount of money by paying your policy in full. In some cases, these savings can add up to 10% or even more.

On the other hand, there is a major benefit of making monthly or quarterly payments. First and foremost, you won’t have to come up with a large sum of money all at once. If you are on a tight budget or don’t have the cash laying around to make a lump sum to get your policy started, this is the perfect alternative.

The Benefits of No Deposit Car Insurance for Young Drivers

For young drivers between the ages of 17 and 25, the cost of car insurance can be astronomical. This is because carriers view them as a huge risk. Due to their lack of driving experience, they are at a higher risk of being involved in a car accident. This, of course, means the insurance company could have to pay out a large amount of money. No deposit car insurance allows them to get covered without making a large first payment.

Young motorists who choose a high deductible will see even more savings. (A deductible is the amount of money you are required to pay when you file a claim before the insurance company begins to cover the cost.) Most people do prefer a low deductible because they won’t have to come up with such a large sum in the event they must file a claim. However, the lower the deductible you choose, the higher your monthly payment will be and vice versa.

Keep in Mind that You Get What You Pay For

Thanks to the increasing demand for low down payment car insurance, companies are having to lower prices to stay competitive. Don’t immediately go with the first provider that quotes you an affordable premium. Always compare multiple quotes and research the company thoroughly before you agree to a policy.

You want to be certain that the company doesn’t have a reputation for giving customers who file a claim the run-around. Fortunately, the internet makes it easy to check on a company’s reputation. With a quick Google search, you can find reviews left by current and former customers. It’s important to understand that all providers are almost certain to have a few bad reviews. This isn’t a big deal. However, if most of their reviews are negative, you should continue your search for a better insurer. Remember, don’t look at price alone.

States Offering No Down Payment Car Insurance

Only certain states, including Arizona, California, Florida, Georgia, Oklahoma, and Washington, offer no down payment insurance. California drivers will likely have the easiest time finding cheap auto insurance with nothing down.

Only select insurers offer no down payment insurance policies. This is likely because these types of policies are often not as profitable. They include several national companies with well-established reputations. Start your free online quote now and compare the cheapest auto insurance with no deposit. Most shoppers can save $500 or more by purchasing a direct policy online. Get started now and save more on the coverage you need.