Most car insurance companies ask you for a high premium upfront to get car insurance coverage. However, not all car owners can afford this, particularly first-time car buyers who might have used all their saving to purchase the car or students.
However, that doesn’t mean that you can’t get low down payment car insurance. First of all, you should search for car insurance companies who need low down payment. The type of car you intend to insure will also determine if you will a low down payment or no down payment at all. For instance, if the car you want to get insured is expensive, you might find it hard to get a no down payment insurance plan as insurance companies are likely to ask you to pay some amount upfront. On the other hand, if your car is old you might be able to find insurance policies that require no down payment.
Necessarily no The Cheapest One
Keep in mind that low down payment or no down payment insurance policies are not necessarily the cheapest but you will be spared the burden of paying a large amount upfront. For example, one insurance company might ask you to give them $300 in advance for the entire year. Comparatively, another insurance company might not ask you for any upfront payment but it may ask you to pay $35 a month. If you add this up for the whole year, you will end up paying $400 for a policy that you could have gotten for $300 only.
However, if you cannot afford to pay a large amount upfront, monthly payments are a better option for you. Another thing that you will have to consider when buying insurance for your car is whether you want full coverage insurance or liability insurance. All 50 states of the US require liability insurance but coverage insurance is not mandatory. Keep in mind that only full coverage will cover damages to your car or you in case of an accident. Liability insurance cannot do that. It is recommended by most states that you get full coverage insurance policies but this will require you to spend even more.
If you are looking for low down payment insurance policies but are short on time, you can try shopping online. Most websites will require you to tell them how much you are willing to pay upfront and you can tell them that you can’t pay for anything. They will then give you quotes that don’t need a down payment.
Young America Insurance Company
Another great option is the Young America Insurance Company. They do not usually reject applications based on poor credit score, past driving record, age, and history of violation like other companies often do. This will make it easier for drivers to purchase insurance coverage. Young America Insurance is a cheaper alternative to other established insurers for many drivers and there are no restrictive application requirements. The company doesn’t just offer no money down car insurance, it also offers many payment methods. The company originally began its operations in Texas, and then it expanded to neighboring regions such as Colorado, Arizona, New Mexico, Missouri, Nevada, and North Carolina.
One of the websites which provide quotes from companies which do not need down payments on their insurance plans is youngamericainsurance.net. The process is fairly simple: all you have to do is select low/no down payment car insurance and enter your zip code. You will then be given quotes from the best insurance providers that do not need down payments.
GEICO, which is the second largest insurer in America, is also the second least expensive one. Even though it’s present in every state, the drivers in Utah and New York can expect to save up to 50% by opting for GEICO. GEICO has also beaten state averages by 28%.
eCar Insurance USA
If you are looking for no down payment car insurance, this is also another great option as you can explore the best options online. The website will help you find companies that offer affordable no down payment auto insurance plans.
Even though American Family is not that popular when it comes to auto insurance, the company serves a lot of cities and beat state averages by 14%. Car owners in Colorado and Washington can even get premiums 29% and 32% below their state average.
It is one of the cheapest and most reliable insurance companies. Customers can start their quote online and the process is fast and streamlined. Apart from offering car insurance with low down payment, Erie also offers a number of other services such as free accident forgiveness, pet coverage, roadside assistance, and free vanishing deductibles. Basically, their service is very flexible. They also offer a Rate Lock program, under which your rates will not go up, except in three circumstances: you relocate to a different area, you add or remove someone from your policy, or you add or subtract a vehicle.
Even though Erie is not a large company, the discounts it offers are at par with those provided by larger national insurers such as anti-lock brakes, bundling, Anti-theft, senior driver, and young driver. Unfortunately, Erie is only available in New York, Maryland, North Carolina, Ohio, Illinois, Indiana, Tennessee, Virginia, Pennsylvania, Wisconsin, and West Virginia. Erie also relies on its agent network which works well to ensure a smooth claims process.
Not Available in Every State
Low down payment car insurance or no low down payment car insurance is unfortunately not easily available in every state. Some states that let you buy auto insurance coverage with low down payment include Oklahoma, Arizona, California, Washington, New York, Georgia, and Florida.
The reason why insurance companies need a down payment is that insurance is a risky business and the company has to predict and prepare for any risks. From the point of view of an insurance company, the best client is the one who is the least risky, financially. That’s why some insurers are reluctant to do business with people who cannot afford down payment as they just want to get insurance to evade registration penalties or satisfy the requirements of a car’s dealership. Such clients are seen as risky by insurance companies. Down payments also help the insurance companies cover the onboarding costs related to the new client. Resources are dedicated to run a full driving report and there are also other costs such as costs related to administrative processes.
However, you need not worry as we have told you how to get low down payment car insurance easily. Even though most companies are reluctant to do that, it certainly doesn’t mean that such companies do not exist. Even more, you can get Low down payment car insurance from any company, you just need to be smart. And lastly, look for the right discounts as most insurance companies automatically add discounts to the policy. Some of the standard discounts you can qualify for include multi-policy discount, good driver discount, safety devices, telematic programs/usage-based insurance, paperless discount, paid in full discount, payment by bank account, and multi-vehicle discount. Even though it may not seem like they will make a financial impact at first, in reality, they will add up.