Can I buy car insurance with a low down payment?
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UPDATED: Mar 13, 2020
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There are many expenses that can be cut from your monthly budget in order to save money. Some bills, however, must be paid and cannot be avoided. Car insurance is one such bill. If you own or drive a car, you must carry insurance according to state laws. Fortunately, it is possible to purchase affordable insurance that will cover your needs without breaking the bank.
Whenever you receive a quote for auto insurance, the price quoted will be for either a six month or 12 month term. In most cases, drivers can choose to pay the insurance premium up front or divide the cost into monthly payments. This enables you to buy car insurance with a low down payment and receive insurance coverage immediately.
If you purchase auto insurance toward the middle or end of the month, the first month’s insurance payment will be pro-rated. This means that rather than paying for the entire month, you only pay for the portion after the insurance policy has been purchased. Once the first insurance payment is paid, your coverage will become active.
What are the Benefits of Paying Car Insurance Monthly?
Paying for car insurance monthly is a convenient and affordable option, but it may cost slightly more at the end of the year than if paid for the entire term at once. Most car insurance companies will charge a small processing if you decide to opt for monthly payments. Drivers who have the money available to pay for car insurance one term at a time may be a making a wise decision to pay for it up-front as many providers offer a discount for full payment. This also prevents you from policy suspensions caused by missing or late payments.
If you do opt to pay car insurance monthly, you can agree to an automatic payment by bank draft. This ensures that premiums are paid on time each month as long as there is money in your bank account when the payment hits. Many car insurance companies offer a discount to people who opt for this type of payment plan as an incentive to enroll.
How do I find Affordable Car Insurance?
Whether you’re looking for an entirely new policy or want to switch car insurance companies, shopping for inexpensive car insurance is a fairly easy process. You can begin by comparing car insurance quotes online. Many destinations exist where filling out a short form can provide detailed quotes for your unique profile from multiple insurers at the same time. From here you can compare policy terms, premiums and even review car insurance company satisfaction ratings.
Are there other ways to save money on my car insurance premiums?
Once you’ve settled on a car insurance company then its important to ask about car insurance discounts. Safe drivers often receive a percentage off premiums each year along with good students, drivers with multiple vehicles and more. You can also modify your vehicle with safety or anti-theft devices or agree to keep the car parked in a covered garage at night. Most car insurance companies also offer a discount to customers with multiple policy lines, so you might consider taking out a homeowner’s or renter’s policy with the same insurer as well.
If there are no discounts, you can still save money on your premiums by reducing coverage. Dropping coverage, lowering policy limits or increasing your deductible all result in lower premiums. Anything that will reduce the amount the insurance company would need to pay in the event of a claim will result in lower premiums. Some companies even allow you to provide a target monthly price to your insurance company and the agent will work with you to get your rates as close as possible to that cost.