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Every driver needs insurance coverage because, in nearly every state, it’s the law. However, not every motorist has a credit card to purchase an auto insurance policy. So how do you start auto insurance coverage with cash or by using a checking account? The good news is almost every major insurer accepts checks.
This includes standard paper checks, online checks, and cashier’s checks. If you start your auto insurance coverage by paying with a check, it will take a few days longer, in most cases, while the payment processes. If you pay with an online check, things will go a bit faster since you don’t need to mail it in.
Let’s go over some strategies you can use to get covered with a low-down payment using cash or your checking account. These days, like many industries, auto insurance is going online and fast.
People don’t want to drive to an agency and sit around waiting to get a quote from an agent that might not have the lowest rate. More and more people are turning to the internet for quotes and even buying coverage on their smartphones. While this has made shopping or auto insurance faster and easier than ever before, not everyone has an easy time getting insured.
Buying Car Insurance Without Using a Credit Card
Some people don’t have a credit card to use or a checking account but still, need to buy a policy. There are many people in this situation, and thankfully there are insurers that meet this group of consumers. Those people without a credit card just want to buy a policy online like everyone else. The truth is, people that don’t have a charge card will be restricted in their buying choices. Many large insurers like Progressive or Esurance are set up to take credit card payments and then automatically charge for installment payments each month thereafter.
Taking cash is a cumbersome task that most companies are just not set up to handle. In today’s society, people and businesses do most financial transactions by credit or debit card. Many consumers don’t have bank accounts or credit cards. For this group of motorists getting cheap auto insurance with a low down payment can be really difficult.
However, there are some payment options that you can use.
- Money Order
- Prepaid Money Card
- Mail a Cash Payment (if accepted)
- Use a Cash Payment App (if Accepted)
Money Orders are a Great Way to Start Paying for Car Insurance
Money orders are a safe and secure type of payment you can use to pay your insurer. The majority of insurance providers like Liberty Mutual, Travelers, Progressive, among others, accept payments via money orders. If you don’t have a bank account, this might be your best option.
You might get a money order from your regional convenience store, like 7-11. Also, the post office offers them, along with many grocers, banks, and even Walmart offers money orders. You’ll likely need to pay a small fee for the cash order, depending upon the company supplying the money order and the dollar amount of the money order.
Walmart charges about $.88, while the U.S. Postal Service charges between $1.25 and $1.75 per money order. Western Union charges the most, $1.25 and $1.50. Of these options, Wal-Mart is the cheapest and probably the most convenient since most people shop there regularly.
You can send out a money order both online or in person. If you are making a payment at a local insurance agency, you’ll more than likely have to physically go to a Walmart, grocery store, corner store, or post office to get the money order.
Purchase a Pre-paid Card
Most pharmacies and retailers like Best Buy carry a wide choice of gift cards that you can buy with cash. While a gift card from Macy’s undoubtedly won’t assist you in getting your vehicle covered, you can get a pre-paid Visas or MasterCard by simply putting cash on them. Once your Pre-paid debit card is activated, you can make the down payment on your auto insurance policy.
The process is pretty easy, and you’re not required to get a credit check or a bank account to get a prepaid card. You can get a pre-paid Visa or Mastercard from most stores that sell gift cards, like your local pharmacy. Just add cash to the card, and your set. You can typically re-load the pre-paid card at numerous places.
Try to pay for the whole policy if you can afford it because almost all insurers won’t let you use a prepaid card to make automatic payments using your pre-paid debit card. If you can’t pay the entire policy amount, make future payments with a money order or other approved methods. Compare free auto insurance quotes online now. To get started, just enter your zip code.
Mail-in Money Payments
If none of the above choices are suitable for your preference, you might consider mailing in cash to your insurance company. This way isn’t ideal for paying your bill, and most insurers advise against consumers from mailing in cash payments due to the risky nature of this type of deal. First, contact your insurer before sending them cash and make sure they will accept that payment form. Many providers just won’t accept it.
There are Currently Only 3 Major Insurers Accepting Cash Payments
- Nationwide Insurance
- Personal Lines Group
- Mercury General
Versatility appears to be expanding in the automobile insurance world. Surprisingly, MetLife and Mercury are two of 3 insurance providers that accept PayPal payments also. The 3rd PayPal-friendly insurance provider is Progressive Insurance coverage.
Does this mean that only the three businesses noted above are capable of accepting money payments? Rules do alter from time to time, and another insurer, small and big, might change their policies in the future. It never hurts to ask. When paying in cash, be sure to obtain a receipt. Make the payment before the due date, and after that, call the insurance provider’s primary customer service number to ensure payment was processed.
Now that you know how to start your auto insurance coverage with a check or cash, it’s time to compare quotes. Enter your zip code now and compare up to 10 quotes in about five minutes. Get the coverage you need today at the best possible rates.