Cheap Full Coverage Auto Insurance with No Down Payment

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Cheap Full Coverage Auto Insurance with No Down Payment  

If are in need of cheap full coverage car insurance with no down payment, there’s no better place to start your search than on the web. Thanks to the internet, there has never been an easier or quicker way to find affordable car insurance. However, before you start your search for the cheapest plan, there are a few things you should know. This includes what full coverage actually is and if it’s right for you. To help you out, we have compiled all of this need-to-know information below that will help you get a better policy at a lower rate. 

A Brief Explanation of Full Coverage Car Insurance

When you come across the term “full coverage,” it’s easy to assume that all of the insurance you need for your vehicle will be included in the policy. In fact, this may not be the truth. In many cases, full coverage car insurance refers to insurance policies that consist of liability coverage, along with comprehensive and collision coverage that only apply to certain situations. 

What is Liability Coverage?

With the exception of New Hampshire and Virginia, most states require that you have, at a minimum, liability insurance. In the event that you cause an automobile accident, this type of insurance coverage will help pay for any damage to the other vehicle owner’s property. Also included is medical treatment for any injuries the other party may suffer from. Damage to your own vehicle and any injuries you have are not covered with a liability only plan. 

Several other states including Alabama, Arizona, California, Colorado, Delaware, Idaho, Indiana, Iowa, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Mexico, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin, and Wyoming will allow you to purchase a bond or deposit cash in lieu of maintaining liability coverage. 

Liability coverage pays out a specific amount, which may be significantly more than the vehicle’s worth, depending on the situation and extent of the injuries resulting from the collision. In most cases, you will need to pay an already agreed on deductible before the insurer pays the remaining policy limit. This refers to the amount the insurer will deduct from your claim for you to pay out of your own pocket.  

What is Covered with Full Coverage Car Insurance?

Cheap full coverage car insurance is designed to fill in any gaps left by liability coverage, including comprehensive and collision. 

If your car is stolen or damaged by a covered cause fill coverage can pay for damages. This includes weather damage, vandalism, being hit by falling debris, or colliding with an animal, just to name a few things. Comprehensive coverage will pay for needed repairs or replacement of the vehicle, depending on the extent of the damage, or whether there is a theft involved. 

Comprehensive coverage requires that you pay a deductible. It is important to note, that if your vehicle is stolen, it will only cover up to the amount of your vehicle’s worth at the time it was stolen or damaged. This is why many people add gap insurance onto their policy, which protects against a financial loss, due to rapid depreciation.   

If your vehicle is damaged by you running into an object, such as a guardrail, tree, or power pole, or you causing a collision with another vehicle, collision coverage will pay for the damage to your car only. Also in this situation, you will be responsible for paying a deductible. Collision ins will only cover damage up to the amount of your vehicle’s worth at the time it is damaged. After evaluating the extent of the damage, the insurance company may choose not to have it repaired. Instead, they may pay off the amount that is owed on it, not to the exceed the vehicle’s value at the time of the incident. 

What is a Deductible?

As mentioned above, a deductible is the amount the insurer will subtract from your claim settlement. This is considered an out-of-pocket expense. Deductibles often range from as little as $500 to a much as $2,000. The lower your deductible, the higher your premium amount will be. If you are in need of cheap full coverage car insurance, a higher deductible will allow you to pay a lower premium. 

What Can You Expect to Pay for Full Coverage Insurance?

Although they do cost you more each month, comprehensive and collision coverage offer the best overall value for your money. Yes, your premium will be higher, but you will also have much better protection. This means better peace of mind.  

 How much you will be expected to pay for coverage varies greatly and depends on numerous factors. This includes: 

  • The year and type of vehicle, any special modifications, and its overall worth
  • Your driving history, including any accidents you may be responsible for and any past traffic citations you have on record
  • What you plan to use the vehicle for, such as personal, or driving for a car service like Uber 
  • The length of your commute and the areas you will frequently be driving in 

On average, full coverage auto insurance policies range from $36 per month or $1,036 per year on the low end, to $152 per month or $1824 per month. Most companies will provide discounts (around 2-5% of the yearly premium) if you pay for the policy upfront. For example, paying $600 in a single payment rather than $100 every month for six months. 

Getting a Full Coverage Plan with No Deposit

There are several insurers, like Progressive and Geico, that will get you insured for the first month with no down payment. You will still be required to pay for 100% of the cost of the premium. Your initial monthly payment of the premium can be used as the down payment. While it might appear that you are not paying a deposit, in reality you are paying your 1st premium, albeit often a little later. Several states allow cheap full coverage car insurance with no down payment policies. They are: Florida, Georgia, New York, Oklahoma, Arizona, California and Washington. 

Now that you know what full coverage plans are and why you need it, here are a few things you can do to find the best rates. 

  • Take time to compare. The internet makes comparing rates among the top insurance companies simple. Compare quotes at multiple providers. Be sure to look at exactly what the policy includes, in addition to the price.
  • Look for discounts. It’s not just good drivers that qualify for discounts. You may be eligible for one, from opting for paperless billing, to being a student who makes good grades.
  • Opt for a higher deductible. Remember that the higher your deductible, the lower your rates go.
  • Automate your payment plan. If you can’t pay your entire annual premium upfront, go ahead and schedule your monthly payments. Usually, you’ll receive a small discount for doing this.
  • Be a safe driver. The better your driving record, the less you’ll pay.

You don’t have to pay a ton of money for your car insurance. Use the tips above to find a great plan with affordable rates.