How to Get Cheap Car Insurance With Nothing Down

How to Get Cheap Car Insurance With Nothing Down

Many people mistakenly think they can get insured without making an initial down payment. This is simply not accurate. The phrase often thrown around the most is “no deposit car insurance,” but it’s not based in reality and has no set definition. Many auto insurers use the term to bring in business, but companies will not activate a policy until the first payment is made. 

So many people are confused when it comes to insurance coverage and down payments. The deposit amount that you are required to pay depends on several factors. This includes the type of car you have, your driving history, where you live and also your credit score. Traders Insurance will evaluate the risk you pose and your required deposit amount will be based on this risk.

If you are a low-risk driver with clean driving history, you may be able to find very cheap car insurance with a $20 deposit. However, if you are a high-risk driver, like someone who has a past DUI conviction, your deposit could be 30% of your overall premium. The best way to find the lowest rates for the coverage you need is to fill out an online application and compare rates from multiple insurers. If you’re looking for no deposit car insurance, providers work with customers to help them get covered with very little money upfront. 

What Is no Deposit Auto Insurance?

Car insurance without a deposit is not a type of coverage offered by most insurers. When you search for insurance, you will be given several options to pay for your policy. This includes paying for the entire premium upfront, which is a popular option for those that can afford it. Paying for your policy in full will save you about 5%.

Another option is to make monthly installment payments. One way some companies market nothing down car insurance is by setting the first installment payment as the down payment. So, for example, if your down payment is $100 and your premium is $1,200 your first-month payment of $100 will be considered your down payment. That is how most insurers market zero down auto insurance plans. 

This helps many people low on funds get insured without having to spend a lot of money out of pocket. Remember though, getting these deals depends on many factors like your driving history and credit rating. No deposit auto insurance allows people to get insured and use their first monthly installment payment as the deposit. Not all insurance providers give this option, but the good news is some do. Get a Trader Insurance quote now and see what no deposit or low deposit deals are available for you. 

No Deposit Auto Insurance Isn’t Free Coverage

No deposit automobile insurance is not a phrase often used by respectable insurers. The truth is many companies, some of whom have a disreputable reputation, mislead consumers by advertising no deposit car insurance plans. This leads consumers to believe that they can secure auto insurance coverage without making a payment.

This leads people to believe they can get car insurance for free, which is simply not true. There is no one company that will insure anyone without an initial payment. When your auto insurance policy becomes activated, you could, in reality, make a claim. Logically, no provider would insure you without first securing an initial payment.

Think about it this way. If you filed a claim without paying any money upfront, your provider would have to make a claim payment without ever receiving any money at all. This is one of the many reasons why you are required to make an initial deposit payment before your policy becomes active. If you’re offered an enticing policy like zero down payment auto insurance, you should be skeptical. Again, there is no free auto insurance. Get a free quote and see the lowest rates available to you.   

Who Qualifies for a no Down Payment? 

Those who qualify for special insurance programs and discounts usually have a good driving record and excellent credit. Most drivers are also over 25 years of age or older. Younger drivers pose the most risk to insurers and thus are often required to make a larger down payment. 

Sign up for No Down Auto Insurance

The first thing you need to do is find an insurer that has low deposit auto insurance deals or nothing down car insurance. You won’t be able to find these deals unless you compare multiple quotes. This means finding online services that allow you to compare several quotes at once. Some direct insurers like Progressive and Esurance have very low deposit auto insurance plans. If you qualify, you can pay as little as $20 down to get insured.

How to Sign-up for  Insurance With Nothing Down

Some people are also confused and think you need to make a deposit before you will get an auto insurance quote. This is simply not true. No reputable auto insurance carrier will require you to make a deposit in exchange for a quote. If an auto insurance company ever charges you for a quote, don’t pay anything. This is a big red flag that signifies the company is not trustworthy.

If you choose to pay for your insurance in monthly installments the process is simple. Once you have filled out a full insurance quote, including your vehicle information and your driving record you’ll be given several options. This includes your deposit cost, your monthly installment payments, and the full price of your policy premium. You will also be given the option to pay with your debit card, credit card or by check. You can even sign up for auto automatic payments. Some insurers will offer discounts if you choose this option. 

How to Find the Cheapest Auto Insurance With No Down Payment 

The best place to search for auto insurance deals, like no deposit coverage is online. Many providers offer deals online that they don’t offer if you were to call an agent or broker. If you need the cheapest auto insurance with no deposit and low monthly payment, you need to begin your search on the web. Enter your zip code now and compare up to 10 auto insurance rates. In about five minutes you might save hundreds of dollars on the coverage you need. Start comparing free quotes now.