Can You Get Cheap Auto Insurance With No Down Payment?

Car insurance can be hard to find, especially for someone who is taking out his or her first policy. You may have to face the prospect of shopping for car insurance right after you go through the intense process of buying your first car because it would be illegal to drive the car without it. However, getting affordable car insurance right away doesn't have to be complicated.

Finding a reputable auto insurance company willing to get you a good deal is simple. You just need to recognize your unique car coverage requirements and budget. At BindRight, you can also compare different car insurance quotations to find one that suits you best.

All car insurance companies will require you to pay a down payment before you begin receiving your coverage. However, this down payment can be reduced at reputable companies to align with your budget.

What Is Auto Insurance With No Down Payment?

Auto insurance with no down payment doesn't mean you don't have to make any down payment at all. When auto insurance companies advertise the no-down-payment policy, they simply state that only the first month's premium is required for the insurance to start.

Regular auto insurance, the kind that requires a down payment, often allows you to spread the down payment over several months. You don't have to pay it all at once. For the first few months, you are billed for your regular premium and a portion of the down payment. But even though spreading out the down payment like this helps, some people want their first insurance tab even lower so they can drive those new wheels asap.

That's why some insurers advertise policies with no down payment.

What's the Catch?

Why would reputable insurance companies allow you to get cheap auto insurance with no down payment?

Many big insurance companies allow customers to pay lower down payments by charging them fees in the months to come. If you choose to pay a lower down payment, be extra vigilant because you might face rising expenses later.

Moreover, if you choose to make no down payment up front, you might lose out on discounts and offers.

Paying Now vs. Paying Later

The no-down payment system allows you to pay a reduced amount the first month so you can enjoy your new wheels right away. Over the next few months, you will be billed for the coverage as well as a portion of the deferred down payment and (probably) fees. Insurers can bill monthly, quarterly, or at other frequencies.

This option can be just what a person needs if buying the vehicle has all but drained their bank account and they don't want to wait for insurance they can afford before they start driving.

Don't be fooled by "no down payment"—you will always be required to pay some amount upfront if you want insurance. However, you can get this amount reduced by looking for the no-down-payment options. The terms of such programs vary by insurance company.

How to Find Cheap Car Insurance With No Down Payment

Many insurance companies will give you the option of going for monthly payments instead of paying the entire insurance premium in one go. However, that could increase the cost of the insurance overall. No car insurance company is going to provide coverage for free.

Now that we have established that brutal fact, let's evaluate how to reduce the cost of coverage. Here are tips for how you can get lower insurance rates.

Tweak your coverage and deductibles.

So, you have decided to switch to monthly payments for your car insurance instead of paying the full amount in up front. Great choice! However, you may have to adjust some of your decisions to meet your budget.

Start thinking about how much coverage you really need. Consider the minimum coverage requirements of your state and whether those are enough. Bare-bones coverage will almost certainly be cheapest.

Raising your deductibles will also lower your premium, but be cautious of raising them too much. You wouldn't want a single incident to drain your bank account—you carry car insurance to avoid that!

Think about the model.

If you cannot afford expensive coverage and are considering auto insurance with no down payment, it is best to switch from a riskier model car to a safer one. Cars that are more prone to accidents demand the most premiums. This is why it is recommended you get a car you can afford in the long run.

Newer models are generally safer models, and this would allow you to avail yourself of the Safe Vehicle discount offered by many insurers.

“The low-down-payment option will certainly lower your first payment and get your coverage started immediately so you can enjoy your new ride!”

Adjust your insurance type.

You aren't restricted to one kind of insurance once you decide to invest in a coverage option. In fact, you can tweak your car insurance type to get billed according to the miles you drive. The fewer miles your drive, the lower your premium. Many car insurance companies allow drivers to switch to low-mileage policies. To qualify, you might need to submit a photo of the odometer once a year. Insurers know that the less anyone drives, the less chance they have of getting in an accident.

Be smart when comparing insurance companies.

Finding cheap car insurance with no down payment is possible if you meet the right company. Auto insurance companies may not always allow you to get a payment plan of your liking. However, the right company will always give you ample options to choose from.

The best way to match with the right auto insurance company is by looking for multiple quotes on BindRight and comparing them. All those companies will take into account your driving history, the model of your vehicle, your location, your age, and your gender when estimating their rates. That's why they can vary widely. Sometimes your credit score will be considered too. A great match isn't just a company with a good reputation and affordable rates but also one that suits you personally.

Leave no stone unturned.

Searching for the best insurance company isn't always enough. You must also ensure that you are taking advantage of all of the money-saving incentives you qualify for at the insurance company. Ask for any benefits or discounts they offer that no one else provides.

These discounts can lower your premium costs over time. For example, if you take certain driver's safety courses, you might earn a Safe Driver discount. Setting up automatic payments from your checking account can reduce costs too. Also, the insurer might let you bundle roadside assistance with your policy for a bargain price.

Go for minimum coverage.

Get the minimum coverage required in your state if you want rock-bottom premiums. You leave yourself vulnerable to a lawsuit if you should cause an accident and your liability coverage is insufficient for the damage (the other driver could sue you for more money), but nonetheless, many people carry minimum coverage and still sleep well at night.

Share insurance.

Until you can save enough money for a policy of your own, you could share car insurance with friends or family. Some companies charge affordable rates to add people to existing policies. If you are a student, you can probably piggyback on your parents' policy. Adding you might also entitle them to bonus benefits.

Look for loopholes.

Some companies offer coverage options they don't generally advertise, so you need to look for them. If you aren't able to make a down payment on car insurance up front, try getting a premium based on low mileage or declaring a low income to get a lower premium. You can also ask for any discount offered on the basis of age, driving record, military service, and more.

Final Thoughts on Getting Car Insurance With No Down Payment

In almost all states, you cannot legally drive a vehicle without insurance. That's why a quick, mobile-friendy service like BindRight is so useful. With BindRight, you can find and compare auto insurance policies on your phone while the car salesman is drawing up the paperwork.

To avoid making a down payment up front, look for the "low down payment" or "no down payment" option offered by many insurers. This will certainly lower your first payment and get your coverage started so you can enjoy the new wheels! In lieu of making a down payment right now, you will be billed for it later, with fees.

Alternatively, consider the option of spreading your down payment over several months. You will only need to pay a portion of the down payment to activate the policy.

Remember that the way you drive and handle your car—along with any accidents, violations, and subsequent claims—is going to affect your premiums in the future. Rates can quickly shoot through the roof, leaving you struggling to pay that premium. It is advisable to get a premium that is below your budget to plan for any unforeseen rise in cost.

The no-down-payment policy is a great choice for drivers looking for insurance that will go into effect immediately without costing an arm and a leg. This way, you get the car insurance you need right away for a monthly payment that fits your budget. Just remember to budget for the upcoming fees.