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Does first month free car insurance sound like the type of policy you’re looking for? There are car insurance companies that do offer these types of deals, or an affordable alternative, that will allow you to get your car legally on the road without a big down payment.
It’s a common problem. You need no money down car insurance, but you are absolutely broke. You have a job, where you can earn the money to pay your premium, but you’ve also got to have your vehicle to get there and earn the money to pay for it. Obviously, you don’t want to get caught driving without any coverage, because that will only create more financial problems. So, what do you do?
Can You Really Get First Month Free Car Insurance?
Everyone has heard the old saying, “if it sounds too good to be true, it probably is.” When it comes to no down payment car insurance companies, this may or may not be the case. Read more about dead or live. Instead, it all depends on the insurance company you choose and what type of special discounts they are offering. There are also a few factors the insurance company will consider before making you an offer, such as:
- Your driving history
- Your credit history
- The type of vehicle you want to insure
- The age and overall value of the car you want to insure
- What type of coverage you need (collision and comprehensive or basic liability)
- Any extra features you may want with your policy, such as roadside assistance or rental car reimbursement
Discounted Policies that Can Save You Big Money
In the best case scenario, with a perfect driving record and credit score, you will qualify to pay absolutely nothing for your first month’s car insurance. This is usually known as a discounted policy. It’s typically offered to brand new customers looking for car insurance 0 down payment available. A policy with one month free coverage is just like any other. You get the coverage you need, but you don’t pay until the second month. However, you may not be saving as much as you think.
Yes, there are a few car insurance companies that offer car insurance 0 down payment with no strings attached, but they are few and far between. Instead, what most companies do is fiddle with the numbers a little bit.
Here’s an example. If your policy costs $600, your payments would break down to $100 a month for six months. If you get your first month free, they are likely to bump up your monthly payment to $120 a month. This means you are paying for the policy in full, yet you don’t have to actually make a payment the first month. As you can see, they are just redistributing the total amount of the policy over the remaining month’s payments. In short, you will still pay the full $600 premium. You’ll just do it on a time schedule that fits your budget better.
Do You Really Benefit From First Month Free Car Insurance?
If you really get a month’s worth of car insurance with zero down, there’s no doubt you are getting a great deal. If you can’t quite make the first month’s payment and you can put it off for another month, you are benefiting as well. Of course, in the second case, you aren’t actually saving any money. This is where you might want to consider some other options, that will still allow you to save money on the coverage you need.
Is it Smart to Pay Your Premium in Full?
While this may not be an option now, you’ll want to know that paying your premium in one lump sum is one of the best and easiest ways to save money with your low monthly car insurance. Almost all insurance companies, including Geico, Progressive, State Farm, Allstate, and Farmers, offer a “paid in full discount.” On average, you can expect to save somewhere between 5 and 10% of your premium. Even better, you won’t have to worry about remembering to make your monthly payments or being hit with a late fee.
Look for Discounts
Speaking of discounts, this is something you’ll definitely want to look into, especially if you are a little short on cash and need your policy activated as soon as possible. You may be familiar with some of the more common discounts, such as having multiple policies with the same insurance company, but there are probably quite a few others you have never heard of. Here are a few to look into:
1. Good driver: If you have a clean driving record and haven’t had a chargeable accident (one that cost your insurer money) in at least 3-5 years, you may be eligible for a “good driver” discount… You may save as much as 10%.
2. Affiliation or affinity discount: There are multiple ways you may qualify for an affiliation discount. It could be through your employer, school, team, or some other membership. You probably won’t know if you don’t ask, so make sure to find out.
3. Anti-lock brakes: If your car is equipped with anti-lock brakes, you may see your premium decrease by as much as 5%.
4. Anti-theft: Driving a car equipped with an alarm or tracking system or a “kill-switch” may save you anywhere from 3-10%. (Some insurers may require that your anti-theft system be factory installed.
5. Defensive driver course: Taking (and passing) an approved defensive driver class may reduce your premium by 5% or more.
6. Bundled services: If you have multiple policies with the same insurer, such as car, home, and health, companies will usually reciprocate your loyalty with a discount.
7. Good student: If you are under 25 and a student with a GPA of at least 3.0, insurance companies will often reward you with a discount of about 5% and even more.
8. Low-income: If you’re a resident of New Jersey, Hawaii, or California and meet certain eligibility requirements, you may qualify for state-subsidized auto insurance.
There’s no denying that car insurance can be expensive, but that doesn’t mean you can’t find some great deals that will drastically reduce your payment. Whether you qualify for first month free car insurance depends on many factors and you might not qualify. If you can afford to pay your full premium in a lump sum or qualify for other discounts, you can find affordable car insurance coverage. Of course, it’s going to take a little bit of work on your part.
Be sure to get multiple quotes and closely compare them before buying a policy. Start your quote now by entering your zip code and save hundreds.