How Often do You Search for No Money Down Car Insurance?
Get a Quote and Save up to 40%!*
Get a Quote and Save up to 40%!*
Most auto insurance premiums are either paid in monthly installments or in one yearly payment. Many people that are buying coverage for the first time ask, how can I buy no money down car insurance? The answer depends on several key factors, including the insurer and where you live. Let’s dig a little deeper and explore several options that will help you get the cheapest car insurance down payment possible.
If you can afford it, pay for the entire premium upfront instead of opting for no money down car insurance. This will save you 2%, or even more, off your premium. It will also, of course, be one less monthly bill you have to worry about. On the other hand, you might want to break up the premium cost into monthly payments. This is a big benefit for those on a tight budget, who otherwise could not afford to get insured.
Most car insurance companies give their customers the option to pay auto insurance no money up front. Why do they do this you might ask? Insurers make a large portion of their income by investing the premiums. So, the more money they can get upfront from each policyholder, the more they have to invest. This often results in a higher ROI, or return on investment, for the insurer in good investment market conditions. For some carriers, it can be the difference between being profitable and not.
Because of this and other reasons, nearly all auto insurance firms offer discounts for paying your policy in full and upfront. This is one of the major benefits to the consumer. Discounts vary by insurer, but can often be 2% or 3% and sometimes more. If you have adequate savings, then it makes sense to pay for your automobile insurance costs upfront.
If you can save more by paying the entire premium in one lump sum, then why doesn’t everyone do it? The obvious answer is many people just don’t have enough savings to make a full yearly payment. An annual auto insurance policy can often cost $800 for liability only coverage to over $3,000 for comprehensive coverage on a newer vehicle.
Many consumers just don’t have that amount of cash laying around. Also, the option of buying a no money down car insurance policy is not available to everyone. Some people won’t qualify and many carriers require a down payment.
Most people pay their premiums in small monthly installments, even if they have the funds to pay the premium in full. Check the cheapest online rates by entering your zip code. Get matched with multiple insurers’ best rates and take advantage of online discounts that can save you more.
If you want the cheapest car insurance possible, then you are going to be looking at state minimum liability-only coverage. If you have a good driving record and a cheap used car, it might be possible to get a year of coverage for $400 or less. To save the most money, pay your entire premium upfront. While you might not have $1,500 saved up for a high limit collision of comprehensive insurance, you should be able to afford a one-time payment of $400 or $500.
If you can’t afford to pay all of your policy upfronts, don’t worry. There are easy monthly installment plans offered by nearly all insurers. You should be aware that most no down payment car insurance companies will add on extra fees, in addition to charging interest. You should carefully review all the wording in your insurance policy, including all the fees and interest you will be paying.
This is important because some companies that offer instant car insurance with no deposit might have a lower yearly coverage rate, but charge more in interest and fees. This can be deceptive and cause serious confusion.
You can figure out what your total annual cost of auto insurance is, by adding up all the monthly payments. Some carriers might charge a small fee for the option of paying monthly but not charge interest. This is why it is so important to shop around and review 10 or more quotes before you decide on one particular insurer.
If you are tight on cash, then you should try and can get covered with a low down payment plan with monthly installments. There are a few requirements for getting auto insurance with $20 down or even no deposit coverage. You will need:
If you meet these requirements, you can get car free insurance no deposit. If you have bad credit or have often canceled your policies in the past, you will be required to pay a deposit of 20% or more of the yearly premium. This is why it’s so important to maintain a good driving record and keep your credit score above 650.
Buying car insurance is something that almost everyone that drives has to do. For those with adequate savings, it makes sense to pay the entire premium upfront. For people that cannot afford to pay for their entire policy in one payment, there are monthly installments available, but check the fees and interest you will be paying.
Finding no money down car insurance plan starts with comparing multiple quotes from regional and national providers. If you have excellent credit and more than ten years of continuous coverage, insurers will bend over backward to earn your business. They will often offer incentives, including no deposit car insurance policies to get your business. Compare low-cost auto insurance near you. Enter your zip code and lower your auto insurance costs.