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What is Low Down Payment Car Insurance

When you buy car insurance you may be surprised to learn that there is actually an insurance down payment for many types of plans. This means you have to pay a certain amount up front before you are given lower monthly payments that are easy to manage. One thing to keep in mind is that if you are paying a low down payment, your monthly payments might be higher than with some plans. Some companies even provide auto insurance coverage with no down payment at all. These plans are not too hard to find if you do a search for such an insurance provider. 

What should you look for when searching to buy no down payment car insurance?

Customizable payments. If you see that a company is offering the ability to customize your payments, that means you will be able to set which portion you want to see as the down payment and how much you want to pay per month. You will be able to see how the down payment affects your monthly payments too. That will give you a good idea of what to expect and how much you should expect to put out for the down payment.

  • First time car buyers and students. Any insurance company that tries to sell cheap auto insurance specifically to first time car buyers and students likely has insurance with no down payment. That’s because those two groups of people are the type of person who might not be able to afford it. Students usually are on a strict fixed income of student loans and first time car buyers might be young families or people who are entry level workers who don’t have too much extra dough.
  • payment up front. If an insurance company is going to let you pay for your whole year’s plan at one time, that might seem like a bad idea since it may be a high amount, more than a few hundred dollars. However, this will avoid the down payment debate entirely and you might save a ton of money. Usually, monthly payments are higher when totalled up, than if you are given the option to pay just a lump sum. You do have to get a big payment together, but it’s just once and after that you’ll be home free and not have to make any insurance payments for the whole year.
  • Sites that ask. Many insurance company sites will go so far as to ask you what you can afford as a down payment. If they do, you can feel free to put a nice goose egg in the appropriate field. Then the plans that they show you will be based on no down payment for your insurance. If they ask you what you’d like to pay for your down payment then there’s a good chance they have some plans that are available without one.

So, while you might think it’s totally the norm to pay a hefty down payment for your auto coverage, you can still find car insurance plans that don’t need you to pay a large sum at one time. You can just make monthly payments that is much easier for most peoples’ budgets. If you’re worried about getting together enough for a downpayment after you’ve just bought a car, don’t worry. That’s a usual concern and it’s the reason for the invention of no down payment car insurance plans.

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