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Common Questions about No Down Payment Car Insurance

No down payment car insurance is one of the most popular types of insurance chosen by drivers. Most companies offer some form of no down payment car insurance, but prices and details differ from provider to provider. There are a lot of misconceptions about no down payment car insurance and insurance companies receive a number of questions about this type of policy. What are the most common questions and answers concerning no down payment car insurance?

Is no down payment car insurance more expensive?

Sometimes, yes. Insurance companies typically offer discounts for drivers who pay upfront for insurance. No down payment insurance is the norm, so the discount is not provided. Drivers pay more for no down payment insurance than those who make a single payment, but it is because there is no discount, not because the installment pay policy is more expensive.

Do I need a flawless driving record for no down payment car insurance?

No. No down payment car insurance is available for regular policies. Your overall policy, and therefore your installment payments, will be higher, but you are still eligible to make installment payments. There are instances where drivers are required to pay upfront, so make sure you review all of your information with your chosen provider and let them know you wish to have a no down payment policy.

Are no down payment car insurance policies “bargain basement” policies?

They can be, but it is not a rule that they are. Payment plans are available on a variety of payments. Usually, you miss out on the upfront payment discount, but you can offset that lack of discount by increasing your deductible or choosing a policy with fewer perks.

Does no down payment car insurance provide the same coverage as other policies?

It should. Choose your policy based on your needs and your specific situation. A no down payment policy does you no good if it does not offer the coverage you need.

Will I be punished for choosing a no down payment car insurance policy?

You shouldn’t be. If you feel as if you are losing out on coverage or paying significantly more, search for a new insurance provider.

Is no down payment car insurance legal?

Absolutely. As long as you have the coverage required by state law, you can pay for it in whatever way you choose.

Can other drivers in my home be covered by no down payment car insurance?

Yes. No down payment policies are just like other policies, but they allow you to split up the cost into equal payments. Usually these payments are made on a monthly basis, but some insurance companies offer different options. Whether your policy covers only you or multiple drivers in your home, the same payment options should apply. Remember, multiple drivers on a policy is often worthy of a discount which can help you make up the difference of missing out on the upfront payment discount some companies offer.

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