$20 Down Payment Car Insurance

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$20 Down Payment Car Insurance

There are those of us that are on a tight budget and then there are those people who have almost no savings at all. That means getting goods and services for as cheap as possible like auto coverage is a difficult challenge. Some consumers can only afford $20 down payment car insurance and others need to get an even cheaper plan.

Most insurers will demand that you pay part of the premium upfront before the policy becomes active. The problem is, some cash-strapped people can’t afford $90 or even a $50 down payment. This includes students and those recently laid off from work or who lost their job. Also temporary conditions, like someone who used up all their savings to buy a car. Whatever the scenario is, a $20 down payment car insurance is a must.

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Auto Insurance Payment Options

Carriers will offer installment programs, that go along with your down payment, which may be nothing down or a very cheap car insurance no deposit. The payment terms are set-up with several options.

very cheap car insurance no deposit

This includes:

  • Premium paid in full with one payment
  • Payments made Bi-annually or every 6 months
  • Payments made Quarterly (these are offered on both 6 and 12-month policies)
  • Monthly payments (this is the option most people choose)

When a person decides to pay for their coverage through an installment plan, they usually need to put down a deposit to get the policy going. Normally, the first month’s payment is what most insurers require. There are also numerous ways you can pay your bill. One of the benefits of getting a direct policy is you can make your payment online. Here are a few of the most common payment methods:

  • Pay by Check
  • Money order
  • Electronic Funds Transfer
  • Credit or Debit Card
  • Paypal

There is a solution for those consumers that can’t afford to make any payment but still need to get their vehicle insured. The first thing you need to do is look for auto insurance carriers that specialize in no money down coverage or have a very low down payment requirement, like $20. Now, this is where it gets a little bit tricky. If you qualify for car insurance with no money down will be contingent on several things.

$20 Down Payment Car Insurance
 

The first of which will be the make, model, year and type of car you plan on getting insured. For example, you probably can’t call up an ins provider and try to get a Corvette sports car covered with nothing down. This isn’t realistic because the insurer knows there is a higher chance of a “high performance” automobile getting into a wreck and causing serious damage and injuries. However, if you have a used Toyota Corolla that you only drive 400 miles per month, then you have a shot. Also, if your vehicle is new and costly, then there is less of a chance you are going to be able to get $20 down payment car insurance. When you buy auto ins, the provider is taking a risk and betting that you won’t get into a wreck. This includes calculating many factors of risk, like repair and replacement costs. If you have a new BMW that costs $60,000, then you probably won’t $20 down payment car insurance and that’s a good thing because it is not likely you could find it.

Getting the cheapest car insurance down payment requires being less of a risk to most providers in the top list of car insurance companies. Customers from Georgia (GA) looking for cheap car insurance can check out: cheap car insurance in GA with low down payment. The less likely you are to get into an accident then the more willing an insurer will be to offer incentives on the policy. Another factor that comes into play is credit. These days auto insurance firms are placing a higher degree of weight on a person’s credit rating. The theory goes that someone who is responsible with their money should also be a responsible driver. So in order to qualify for new $20 policies, you need to make sure your credit is in good standing. If it is not, then take aggressive steps to get it fixed. It will not only help you with $20 down payment car insurance but so many other things like a low-interest rate loan.

You will also have a much greater chance of getting $20 down payment car insurance if you get a liability-only policy. Getting the state minimum coverage can be purchased for as little as $29 monthly, with nothing down, depending on the state you live in and the insurer. Liability insurance is mandatory, so you have to have it if you drive. It’s also a starting point for insuring your car and comes with limited coverage. These “bare bones” types of policies can cause more harm than good if you get into a serious accident.

cheapest car insurance down payment

Cheap Full Coverage Auto Insurance with No Down Payment

For many people with a new or newer vehicle that is leased or financed, they are required to buy full coverage car insurance. This means getting covered with a comprehensive plan that will protect the value of the vehicle from almost any incident. While this is enhanced protection, it comes with higher premiums. Buying full coverage protection can easily cost more than double what a basic liability policy cost. For many people that can barely afford a new vehicle, this puts them in a tough situation. They are forced by the lending company to buy a comprehensive policy, but might not even have enough money for a down payment.

This is a problem that far too many people face when buying or leasing new vehicles. The good news is there are some options available. Several insurers like Progressive will waive the down payment on full coverage and let your first premium installment payment be credited as the deposit. So, for example, let’s say your full coverage policy costs $1,800 per year and the deposit amount is 10% or $180. With some carriers, you can make the first month’s payment of $180 and then the subsequent 11 months payments of $147. This helps out those short on cash, who can’t make a deposit and a first month car insurance payment, all within the first month.

If you shop around for these deals, it’s possible to find cheap car insurance with no down payment and rates under $130 per month. Enter your zip code and start comparing rates in less than five minutes.

Car Insurance with No Down Payment

The cold, hard reality is most insurers require an initial down payment. There is no such thing as a free auto insurance policy. In the case where you live in a state that allows $20 down payment car insurance, you still need to make a payment before your policy will become active. Carriers just do not insure someone, and take on that full risk, without receiving payment first.

So many consumers are attracted to the idea of a free car insurance policy when the reality is just the opposite. Insurance companies want long-term clients that can afford to stay covered at all times. A prospective customer that wants something for free is often not a good long-term client. They are more prone to cancel their policy, not make a payment, or even worst, file a false claim. Therefore, it is not likely you’ll find low cost car insurance with no down payment, but you can do a search in your area for the cheapest policy available.

This “bad news” of sorts should not persuade you from finding the best coverage with the lowest deposit. There are many quality insurers that offer insurance without a deposit required. These deals are not offered to everyone. To qualify, in most cases, you must:

low cost car insurance with no down payment

  • Have a Good Driving Record
  • Be over 25
  • Seek Basic Coverage
  • Have Good Credit

The Pros and Cons of Getting Car Insurance With No Down Payment

Another important thing you need to consider is these low down policies are often more expensive over the course of the year. For example, you might think you are getting a great deal on a policy that requires nothing down. Then, you’ll be paying $150 a month for the next 11 months, totaling out to $1,650. Another insurer might require you to pay $200 down for the first month, but then the remaining 11 months, the premiums are just $110. This policy would total out to $1,410 and be $240 cheaper annually than the no-down one. Of course, you probably need the $20 down payment car insurance, so you are willing to pay a little more on the back-end because you really need very cheap car insurance no deposit because you are temporarily cash-strapped.

No Money Down Policies Cost More

If you are able to find low cost insurance without a down payment, you need to know you will probably end up paying more than if you made a down payment. However, for many people that just don’t have anything saved up, it can be worth it. There are those starting a new job or in a short-term financial crunch that can’t make a deposit at all. Putting down a large deposit for auto insurance is just not an option.

The truth is very low deposit policies and $20 down payment car insurance can cost 20% more, than a typical policy that requires a 15% upfront deposit. Some mistakenly associate a low deposit auto insurance plan with a cheap policy. Even if your deposit is as low as $20, your monthly payment could be $150 or more. If you put more money upfront, say $175, that installment payment could be around $130 monthly. In most cases, the larger deposit amount you pay, the lower your payments will be. It’s also smart, if you have the money, to pay the entire premium amount in full. This can save you and also reduces stress because you won’t have to worry about making recurring payments each month.

car insurance with no down payment

States That Allow No Down Payment Auto Insurance Policies

There are only certain states that allow insurers to offer zero money down coverage. These include:

  • California
  • Washington
  • Arizona
  • Oklahoma
  • Georgia
  • New York
  • Florida

Low Down Payment Car Insurance For Teenagers and Young Drivers

Drivers under the age of 25 often have a unique problem. Many don’t have a lot of money, yet they are charged more for things like auto insurance and loans. This is because stats show younger motorists get into more accidents than any other age group. They also take more risks and have bad habits as you guessed it, texting while driving. So how does a young driver get very cheap car insurance with no down payment or a very low deposit? The odds are stacked against them but it’s still worth a try.

First, compare several plans from direct insurers like Progressive and Esurance. These large insurers often have more flexible plans, with deposits that might be as low as $20, but often are $50 or more. The next step is to get a basic policy, such as state minimum liability coverage. This will reduce the overall cost of the premium. As a rule of thumb, the lower your total cost of coverage, the lower your deposit will be. So, for a 6-month liability insurance plan that costs $370, you might only need to put down a down payment of $45. This is one way to get low deposit auto insurance coverage. You also want to have a vehicle that is cheaper to insure. A new Corvette, for example, will require a larger deposit than a 10-year-old Ford Focus. If you want the lowest down payment auto insurance get a used, older car.

low down payment car insurance

Low Deposit Auto Insurance for Seniors

Drivers over 55 are some of the safest motorists on the road. Their wild years of fast, reckless driving are long behind them. Statistics prove that seniors between 55 and 65 are some of the safest drivers, who get into far fewer wrecks than younger motorists. They almost never twitter or text while driving. Another reason why seniors get cheap auto insurance with low deposit is they do not drive as much. Many older motorists drive less than 800 miles per month. Insurers also love these drivers because they tend to pay their bills on time and stick with one company for years. For these reasons, many seniors can qualify for $20 down payment car insurance in select areas and qualify for some of the lowest deposit amounts of any group of drivers.

Who Qualifies for No Money Down Auto Insurance?

While many insurers have flexible payment options, including $0 down auto insurance, not everyone will qualify for no money down car insurance. Insurers take on a significant amount of liability, no matter who they insure. This is one reason why they require a down payment. This shows the client is serious about insuring their vehicle and has the financial ability to make an initial deposit.

Insurance providers will assess the risk you pose and then determine if you qualify for very cheap car insurance no deposit or policies that require a low deposit. You will likely be asked for your social security number when filling out a quote. This will play a big role in risk assessment and the rates you will end up paying. It’s also important to note that new vehicles, especially those that cost more than $30,000, will require a larger deposit. Also, those drivers who require an SR-22 or have had reckless and DUI convictions in the past will be required to pay a larger amount of the total premium upfront.

How to Get the Best Cheap Car Insurance with the Lowest Deposit

No matter where you live if you need the cheapest car insurance with a low deposit, you should start your search online. You can compare prices from national and regional insurers in just a few minutes. This will let you see who has the lowest available rate without a down payment for the coverage you need. There are things you can control to get cheaper rates.

no money down car insurance

These include:

  • Raising your deductible amount to $1,000 or more)
  • Get rid of over-lapping coverage (like rental car insurance)
  • Review your policy limits
  • Park your car in a garage and save
  • Maintain a credit score above 700

Take advantage of several discounts (this includes good student, military, teacher, senior citizen, save driver and more)

In some areas, it will be easier to get cheap auto insurance with a low down payment. You might qualify for no deposit car insurance in Florida if you:

  • Have a used vehicle more than 8 years old
  • Have had continual coverage for 3 or more years
  • Have great credit
  • Excellent Driving Record
  • Seek a State Minimum Liability Policy

Conclusion

Finding zero money down is a difficult task. To be more realistic, look for insurers that have low deposit options like Progressive and Esurance. If your risk profile is good and you have a used vehicle, you might qualify for $20 down payment car insurance. The more of a risk you pose to an insurer, the higher your deposit will be. Also, the more expensive your automobile that’s being insured is, the more of a down payment you will be required to pay upfront. To find the best rates and lowest deposit requirements, apply for quotes online. This will save you time and help you find the best rates on the coverage you need. Get started now by entering your zip code.