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Does Zero Down Auto Insurance Require You to Sacrifice Coverage?

Ford truckThere are many gimmicks used by auto insurance companies to lure customers to a particular company. In some cases, potential customers are promised deep discounts or special services. Other companies offer bonuses for safe driving or the ability to pay for insurance in installments. In many of these cases, the special offers are little more than an advertising stunt to attract attention. This does not make the offers inaccurate. Customers are given discounts and bonuses and special services, but chances are, these things are as special as they might seem. A great example of creative advertising is the offer for zero down insurance.

Paying for an insurance policy upfront is somewhat rare. Though some people do save money by paying the entire premium on their policy all at once, the average person divides their total premium by three or six months. It might seem as if this results in saving money, but in many cases, drivers actually pay more. Some insurance companies apply a discount when a customer pays the full price of their policy upfront, so by dividing the payments, you miss out on savings. Unfortunately, not everyone can afford to pay the entire lump sum upfront, so they must divide their premium into payments.

High Risk Drivers and Zero Down Auto Insurance

Another type of zero down auto insurance involves policies not offered to high-risk drivers. Sometimes, if a company considers a driver high risk, he or she will need to pay a lot more for coverage. In some cases, this increased amount must be paid upfront. This ensures the insurance company is protected in cases where they choose to offer coverage to drivers that are considered riskier than usual.

Is Zero Down Auto Insurance a Good Choice?

The answer to this varies from driver to driver. Sometimes zero down insurance is not an option. Some insurance companies are unwilling to offer zero down insurance because it requires them to assume a bit more risk. In other cases, a driver might not want zero down coverage. If there is savings to be had by paying upfront, and their budget allows for this, it is the better choice because they are spending less. However, if your budget is limited and you are looking for ways to save, zero down insurance is a great option.

Deciding the best insurance option for you and the other drivers in your family can be a tough decision. There is a lot of information out there and some of it is misleading. Remember, if you are a good driver or even an average driver, insurance companies are eager to bring you on board. Many use all sorts of tricks to make their policies seem the most attractive.

What’s the best way to find a policy that is right for you, whether it be zero down auto insurance or otherwise? Use our free search tool to determine what policies are available to you and take your time making your final choice. The more you know about auto insurance the more information your choice and the more likely you will end up with the best option for you.

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