subject: No Down Payment Car Insurance [print this page] If you own a vehicle then it is a legal obligation to have the minimum stipulated insurance cover for your state. For many people the outlay can be a real burden, for this reason you may be searching for no down payment car insurance.
In reality the availability of no down payment auto insurance is rare. A policy is a form of contract and therefore for it to be valid a financial transaction must occur. Most insurers would not want to offer cover without some amount of cash changing hands.
But there are some insurers who can offer a binder for the coverage. This locks in the policy rate and allows the policy to start on the condition that the agreed down payment is paid in full within a short amount of time, typically a couple of days after the binder has been issued. If no down payment is made on schedule then the policy will become void and any losses accumulated during the binder period would not be paid for by the insurer.
Though it is hard to find a policy that has no initial payment there are steps and strategies that can be implemented to minimize the initial outlay. For example an insurance provider who allows their customers to pay monthly installments can be a great solution. It is possible to be covered as soon as you make the first thirty days payment. This is often preferable then paying a full six or twelve months at the start. But be warned that by choosing to pay in installments the total cost may be more than if you were to pay the full amount outright.
Be aware that there are some firms which charge a policy initiation fee. This is meant to cover the administration costs when a policy starts. The actual cost may be as low as twenty dollars or as much as a hundred.
When it comes to finding an insurance company to engage you have a number of avenues that you could explore. Apart from the firms that advertise on TV and in the print media you can also use the internet to compile a short list of possibilities. It is also worthwhile asking friends and colleagues about the insurers they use for their vehicles.
Although no down payment insurance is not so easy to find you should not think that all polices require a massive outlay at the initial stage.
by: Lance Thorington
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