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Consumers looking to save money and find coverage that fits into their budget should check out very cheap car insurance with no deposit. While it is possible to find cheap auto insurance in every state, the term “no deposit auto insurance” is not a standard phrase used by insurers or agents. It is, in general, referred to as policies that do not demand an initial deposit when you apply for coverage. These policies don’t cost much more, but not all insurers offer them.
The deposit required to secure coverage will depend on many factors, including:
- The Insurance Company
- The Age of the Driver
- The Automobile and whether it is owned, financed, or leased
- Driving Record
- Credit Rating
A deposit in select states and carriers could anywhere from zero down to 33% of the yearly premium. If you have a good driving record and a used car, your down payment should be much lower than your monthly premium. Usually, it’s anywhere from $20 to $50.
Therefore, it is so important to think about your next vehicle purchase and how it relates to insurance rates. Expensive newer cars that cost over $20,000 will almost always have a higher deposit because the overall premium will be greater. There are still great deals out there. All it takes is some diligence and quote comparison research. To get insurance now pay later, start your online quote by entering your zip code.
Applying for No Deposit Auto Insurance
If you are like many consumers and can’t afford to pay for the entire premium amount upfront, you will need to make monthly payments. The good news is almost all insurers have convenient monthly payment programs. When you apply for a quote, you are then given a chance to select a payment option. You can pay in full, quarterly, or month to month.
You will also be quoted the Deposit Amount – if any Monthly Premium Payment Amount is not paid off.
For example, using a 2012 Honda Accord as an example, Progressive Insurance provided a low deposit amount of $5. The first monthly payment totaled $109. The total premium payoff amount quoted was $1,232. Note how small the deposit was of just $5. Almost anyone can afford this amount, and it makes securing coverage easy for those low on funds. Once you go through your quote and decide on a payment option, you can purchase your policy online instantly. You can even use your smartphone through the entire process and print out your I.D. cars in a matter of minutes. If you choose an installment plan, set up automatic payments, so you never miss paying your bill. Some insurers offer a small 2% discount just for setting up automatic payments.
Advantages to Low Deposit Car Insurance
There are several reasons to consider car insurance with low down payments. In some instances, you might be in a financial crunch and low on money. In this case, getting the cheapest coverage with zero down might be the only option. Here are a few reasons why these plans are so popular:
- Securing Coverage at no or little cost
- Offers Monthly Premiums at no additional cost
- Ability to Add Additional Coverage or Cancel the Plan at Anytime
- Automatic Payments Using a Credit Card or Bank Debit
Disadvantages of Low Deposit Auto Insurance
There are not too many negatives about buying no deposit car insurance. It would help if you realized that not all insurers offer these deals, and the premiums may be a bit higher. Also, not paying for your premium in full will almost always cost you a little more. For the cheapest plan, pay for an entire year of coverage in one payment.
Who Can Qualify For Very Cheap Car Insurance No Deposit?
The less of a risk you pose to an insurer, the more likely you will qualify for coverage with zero down. This means no prior at-fault accidents and no outstanding tickets. Also, credit is more of a factor than you might realize. If someone has a good score, they are more likely to pay their insurance premium and on time each month. This is why insurance companies give these customers better rates.
If you meet specific basic requirements, you can get cheap car insurance with the first month free. Each insurer has different pricing metrics. You might get covered for just $20 down or pay up to 25% or more of the premium. Remember, low-risk drivers will get the best deals, including a lower deposit.
What If you Don’t Qualify For No Deposit Auto Insurance?
While it might be hard to find a low deposit from $5 to $20, there are still steps you can take to get cheaper coverage. If you’re tight on cash but need car insurance today, you still have some solid options. This includes:
- After you have applied for 10 or more quotes, compare the cheapest first installment payment. This installment will be a small deposit, plus your monthly premium amount.
- Consider buying the state minimum liability insurance where you live and minimize add-ons. This determination will lower your deposit and monthly payments.
- Choose a Higher Deductible
- Fix the issues that resulted in you paying more for coverage. For example, if you have bad credit or tickets, work to get it cleared up.
Cheapest Policies For High-Risk Drivers
If you are classified as a high-risk motorist, finding cheap car insurance can be frustrating. Insurers make a profit by not paying out claims, and the riskier a driver is, the more likely it is they will get into an accident. This is the reason why down payments and premiums are so high for these types of drivers. Getting a DUI, an at-fault accident, reckless driving, or having very bad credit can all send premiums up 50% and more.
If you fall into this category, get as many quotes as possible, and choose the lowest deposit. Also, get the basic coverage that is less costly. There are companies like The General that have low rates for higher-risk motorists.
Where to Buy Very Cheap Car Insurance No Deposit
The internet has revolutionized just about every industry, including insurance. It has really shifted the power to the consumer and allowed quote comparison-shopping fast and effortless. You can compare multiple plans online and review the deposit requirements between each insurer. If you are in a cash crunch, you can get insured with a company that offers first-month free car insurance with no down payment. The premium might be a little higher than other competitors. However, it will allow you to get coverage for less the first month, which’s the most important thing.
Other carriers might have cheaper monthly rates but require more of a deposit. The best way to find a plan that works for you is to compare 10 or more quotes. You can do this in a matter of minutes using quote tools that search rates from dozens of providers. Get started now by entering your zip code.
If you need instant coverage but have little or no cash, then look for very cheap car insurance no deposit online. While you might have to compare several quotes from different companies, don’t give up until you find both the most affordable deposit and plan. Also, you might opt for liability-only insurance with a low deposit for a few months and then add more coverage when you can afford it. Get started now and compare direct quotes online.