Getting Cheap Car Insurance with no Down Payment

January 27, 2012

It can be difficult to find cheap car insurance with no down payment. Most insurance companies will require you to prepay at least one month worth of insurance, and others will require you to prepay up to six months at a time. While many insurance companies offer convenient monthly payment plans, you must make an initial investment of at least one month's payment to start the payment plan. Although finding a cheap car insurance payment with no down payment is possible, you should be prepared to pay at least one month worth of coverage to start your insurance. If it is difficult to make a large cash payment to start your coverage, it is best to put your first bill on your credit card. This guide will help find car insurance options that allow you to defer your initial down payment to get car insurance legal, very quickly.

Get Competitive Quotes

You can find the best options for car insurance by requesting multiple quotes. By finding competitive quotes, you can choose the policy that works best for you. It is easy to request quotes from traditional insurers like State Farm, Progressive and Geico, but you may be required to prepay one or two months worth of coverage to be accepted for a monthly payment plan. Again, if you must have insurance today and cannot afford it, it is best to put the first payment on your credit card and then begin sending checks for subsequent monthly statements. Although unlikely, you may be able to find an agent who will provide a no-money down policy by paying for your first month of insurance out of their pocket.

These top-tier insurance companies offer competitive monthly rates, but if you have no or little money to put down, it is time to consider a second-tier insurer. Your coverage will likely be more expensive, but if you prefer higher monthly payments opposed to putting money down, this may be your only choice.

Consider Second-Tier Insurers

Second-tier insurers include companies like The General and SafeAuto Insurance offer low-money down insurance and allow you to put your first month's payment on a major credit card. This will help you get the insurance without needing the money to start your policy. Just make sure you continue making the car insurance payment after receiving your first statement. It is illegal to operate your vehicle without car insurance, and in most states a vehicle without car insurance must be towed and impounded. These fees can cost more than several months worth of insurance coverage.

It will be difficult to find a true, no down payment car insurance policy. Your best bet is to use your credit card to pay for the first month of coverage. This will allow you to delay payment of the first month's insurance until your credit card statement is due. However, be careful you do not become reliant on your credit card to pay for car insurance. While there is nothing unethical with such an action, it will cost you much more in interest than simply paying the bill with a check.