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0 Down Auto Insurance is Great for Your Budget

There is a lot of talk out there about 0 down auto insurance, but not everyone understands how it can help them. This is especially true in cases where a 0 down plan costs you a bit more in the long-run.

Some insurance companies structure their payment plans to offer a discount for drivers who pay their entire premium up-front. Doing so is no more common than paying in installments, but it helps the insurance company, so they pass some savings along to the driver.

If you are on a tight budget, paying your premium in one lump some is probably not an option. You need to divide your premium into monthly payments and not pay a large amount right at the start. This type of 0 down auto insurance is great for your budget because it allows you to stretch your payments out over time. You are still paying a reasonable amount overall and you are fully covered throughout the life of the policy, but you are not forced to pre-pay for your coverage.

0 Down Auto Insurance for Most Drivers

These monthly payments are usually very reasonable, even for young or at-risk drivers. Of course, you are going to pay more for coverage if your driving record is flawed and the insurance company considers you a risk, but stretching out your payments can make your policy more affordable.

Instead of having the large charge upfront, you are able to pay a smaller amount each month as you earn more income. It gives you additional time to save for paying a premium, even if your coverage costs a bit more than the average driver.

Flexible Options on Auto Insurance

One concern drivers have about 0 down auto insurance or paying their premiums in installments is whether or not they can make changes to their policies. It is actually easier to make a change to a policy if you are paying in installments.

Typically, if a change in your life occurs that affects the cost of your insurance premiums, you contact your insurance provider and notify them of the change. They make any needed adjustments in the cost of your policy and apply them to the payments that are still due.

For instance, if you change jobs mid-way through a policy and you are driving far fewer miles to work each day, let your insurance provider know. Usually, this lowers the cost of your policy. If you still have three installment payments due, these payments will cost less than the payments already made against the total. Using simple numbers:

You are currently paying $600 for six months of coverage spread out over six months. This makes your monthly installment payments $100 per month.

Mid-way through the life of your policy, you change jobs and drive fewer miles each day, resulting in a total savings of $100. There are three payments left on the policy, so the $100 savings must be accounted for in the three remaining payments. Your monthly premium charge now drops from $100 to $67. The savings is divided by three for the three months and applied to the monthly payments.

Keep in mind the savings here is not because of the type of policy you chose, it is because of a life change. The benefit to installment payments and 0 down insurance is the ability to have lower payments over time, as opposed to paying upfront.

If you would like assistance finding 0 down auto insurance or you need another type of coverage, use this free search tool to make the process easier.

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