No Down Payment Auto Insurance

Automobile insurance is a mandatory requirement for anyone who wishes to drive a vehicle in the United States. In the case of a motor vehicle accident, the at fault party is responsible for all damages and injuries to other drivers or passengers. If your own vehicle has been damaged then you must add this to your expenses as well. Most people cannot afford to pay the high cost of medical bills or car repairs which could amount to thousands of dollars. This is the purpose of auto insurance.

Today’s economy has forced many people to tighten their budgets and watch their spending carefully. Some expenses, such as car insurance are necessary, and it can be difficult to make ends meet. Luckily, most insurance companies have many options available when it comes to car insurance policies. The best thing to do is check around to compare coverage and prices from several agencies. You will often have the selection of purchasing a 3, 6, or 12 month policy. Only paying a few times a year instead of putting down the entire amount can be a little easier on the pocketbook.

However, sometimes this may still be too expensive to handle. Some insurance companies allow their customers to pay monthly for their auto insurance policies either with a low down payment or no down payment at all. Not every company has this choice available so shop around and make sure to ask.

Not everyone can qualify for no down payment auto insurance. This depends largely on your credit score and your history with paying your bills. If your insurance policy has been cancelled in the past due to non-payment, chances are you will not be offered no money down car insurance.

If you do qualify, however, make sure to review the terms and conditions of the payment policy. A pre-authorized payment will be withdrawn from your bank account or credit card every month, and if for some reason the money isn’t available, you will be penalized and run the risk of having your policy cancelled.

You may have the choice of paying a low down payment as well which could amount to one or two month’s premium. The more you do pay down initially, the lower your monthly payments will calculate to.