Car insurance with no down payment (sometimes referred to as “no deposit car insurance“) refers to auto insurance policies that give customers coverage without having to make an initial or upfront payment. There are some companies that require customers to make a car insurance down payment or “deposit” in order to show that they are a committed customer. Many people don’t mind making the initial payment and if you are serious about obtaining a policy, the first payment should not really bother you very much. The only reason that most people want to get auto insurance without a down payment is because they want to save some initial money. It is not bad to want to save some money upfront, but you should not be making your decision to get coverage through a certain insurer based on whether they require a down payment.
Advantages of Car Insurance with No Down Payment
You save money right away; instant savings
The real advantage of getting auto insurance with no down payment is that you save money right away from the start. This means that you don’t have to worry about paying a large fee right away to your insurer when you get coverage. Some people like the fact that they get instant savings and the fact that they are able to save right away draws them into buying this type of policy. In some cases, the initial savings may mean that you save more money in the long run or get free coverage for a period of time. In most cases though, car insurers are going to get back the money that they allow you to save early by charging more at a later date.
You may get to cancel without paying if unsatisfied
Another good thing about certain companies that offer car insurance without a down payment required is that they sometimes will give you a month (30 days) or so to test out their policy. If you are unhappy with the coverage that is provided, you may get to cancel your insurance coverage without having to pay any money for it before the first 30 days are over. Of course it is your job to ask about whether “no down payment” means that you get free coverage for a certain period of time, because sometimes this will not be the case.
What You Should Know About Car Insurance that Doesn’t Require a Down Payment
Obviously if you get the option of “no down payment” as a result of a deal offered by your auto insurance company, it is a great extra perk to get. However, make sure that you don’t choose to buy insurance solely based on whether they offer “no down payment” initially. If you cannot afford to make a down payment, chances are good that you are going to have trouble making payments when the time comes for them to be made.
What you should be doing is focusing on getting an affordable car insurance policy that you feel comfortable with from the beginning. Price is going to play a role in buying insurance to a certain degree, but the payment structure should not be the most important aspect of your insurance policy. Most good insurers will have flexible payment options, but don’t skip a company that provides good coverage just because they require you to make down payments.