There are many insurance companies out there that advertise ‘no deposit car insurance‘ but it can be misleading. Usually, reputable insurance will require you to put some money down to buy the policy because the risk is too high for them.
Some policies promise to waive the down payment, but require a first month’s installment. What this means is that you do not need to make a down payment to be covered.
The appeal of such an offering is easy to see—it’s much easier than having to pay up front.
With Dairyland®, you have the option of customizing a coverage plan to suit your circumstances, priorities, and budget Even if you do not have enough money on hand for total up-front payment, we can discuss other options to find an agreement that works for you. However, beyond an up front payment it is critical that you find a provider that offers the cheapest car insurance.
Here are some misconceptions about car insurance and other types of options that can work for you.
How to buy cheap car Insurance with no down payment?
Research insurance options by contacting direct companies and reading about their services. When you compare potential insurance providers for rates, consider the following:
Is the company reliable?
Unfortunately, it’s hard to trust that an insurance provider is telling the truth. Make sure you visit their website, read customer testimony, and contact them directly. You should also talk to a licensed agent throughout the process.
Does customer service stand the test of time?
If it’s acceptable that an insurance company will protect you when your accident, it’s important to remember that they can be difficult to reach. If the customer service department is hard to get in touch with or if you have difficulty understanding the provider’s response, your best move is not to stay with them.
How much would my car insurance payments be?
If you don’t have the financial resources to fully invest up front or pay in a lump sum, then you’re most likely faced with monthly payments. Your payment plan will include various fees, charges and also help reduce your monthly payments on a first come, first served basis. The money invested in deposit or down payment will be applied to the cost of your service.
When will I start paying my car insurance?
Depending on the service, you might not pay for a month or more. This helps ensure you’re budgeting properly and that you’re ready to start making payments. Most companies will provide a payment schedule so you know what to expect.
Learn what options you might have if you want to avoid no-deposit car insurance
Because reputable insurance providers require some form of initial payment before they sell you auto insurance, you need to know what your other options are.
Make an affordable low down payment
A down payment demonstrates to your insurer that you’ve invested in coverage for the future. And, a bonus benefit of making a down payment is reducing future monthly payments by canceling them.
Car insurance companies have to make a decision on what kinds of down payments they need. Some might require 6% of your total premium, some might take the whole term premium, and others might ask for below that amount.
Your provider of auto insurance may have a number of formats to choose from, including cash in person, payment by credit or debit card, electronic check, etc.
Get SR-22 insurance while saving money
Depending on your situation, an SR-22 may be required to get you back on the road. You’ll want to learn more about these policies and how they work, so we built a quick resource center with everything you need.
Lower your rates with car insurance
You can take an active role in determining your car insurance rates. You have many methods to save money, including:
- Multi-car discount
- discount for advanced quote
- discount for defensive driving
Keep in mind that discounts can also vary widely depending on the state, so give us a call to discuss your options.
Watch out for confusing coverage terms
Be wary of insurance companies that use ambiguity when they explain the terms of their coverage because they may not actually be the type of option you need. This passage includes coverage options to help you avoid insurance scams, so be aware of these options:
Buy now, pay later: This is another way of referring to a monthly payment plan: you will still need to put some money down to secure your policy. Most insurers will give you a few weeks to make your first monthly payment.
First-month-free: Month-to-month car insurance with 30 days to pay is misleading because while you might not be paying the first month, you still need to. Your first month isn’t actually free—you still need to pay for it.
Instant auto insurance with no down payment: your policy is good for the time you put in it, but it won’t happen immediately unless you pay up some funds in advance.
Car insurance may seem complicated, but our answers to the most frequently asked questions can help make the decision easier.
Each state establishes its own minimum coverage requirements for auto insurance. Dairyland can help you understand your coverage limits and give you a quote today or a representative can answer your questions.