Car Insurance With No Down Payment
The economic downturn has curtailed spending and many people do not have the money even for essential services
. Legally almost every state in the United States requires your vehicle to be covered by auto insurance. This will mean shelling out a fat amount for deposit required by the insurance company. Luckily there are certain companies which give car insurance with no down payment.An insurance policy is a binding contract, where you agree to pay a certain sum in exchange for coverage. This means money has to be paid for the contract to be initialized. Most of the companies require you to make a deposit, so that they can give you a contract which will have a list of coverage.
So, how is car insurance without down payment possible? Well, strictly speaking it is not, but many companies offer a monthly payment plan so that your initial financial burden is reduced drastically. The company does not charge you any deposit amount but you start paying the premium amount in stages. The minimum allowed is a monthly payment which divides your payment in twelve installments.
This can be a good scheme if you are really short on money and you have no other option. Although your financial burden is divided, you usually end up paying more for the insurance as almost all companies charge a little extra when they are accepting monthly installments.
You also need to find out if the insurance company is disguising the deposit amount by way of some initial fees. Although the company may not ask for a deposit they may have some sort of application fees. So, you need to make sure there is no additional burden put on you, and you are paying only the installments.
The next question you might ask is where to find companies who do not take an initial deposit. Well, the best place to search is online and due to the current economic situation you will be surprised to find quite a few companies offering this type of schemes.
So, car insurance with no down payment is a reality and you need to find the right company which offers the monthly payment scheme and also takes care of your coverage needs. Make sure to study all the terms and conditions of the proposed policy and read all the fine print to avoid any nasty surprises in the future. Try to choose a reputed insurance company which has been in business for a long time.
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