Jessica Sautter has a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around auto insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Reviewed by Natasha McLachlan
Content Writer

UPDATED: Oct 1, 2020

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Table of Contents

No Down Payment Policy Benefits

When searching for lower priced car insurance policies, there are several ways that you can save money. One of the best is having a low or no down payment for the insurance. This type of insurance is growing in popularity as people are discovering the savings it can generate, particularly over time as you forgo having to pay deposits to secure your policy.

Generally speaking, you can save 10% to 20% when getting car insurance with no down payment. For example, if you are paying $500 for the full policy, you can save up to $100 by getting one with no down payment. The savings can vary depending on what is included in the policy and the company that you use. However, the savings is genuine and offers many advantages for the buyer.

Advantages

There are significant benefits when choosing this type of policy starting with saving upwards of 20% on the total amount.

Manageable Payments: Instead of having to pay the deposit along with your first payment, you just make your first payment. So, instead of paying $130 for your first month, you only pay $65 which makes fitting the premiums into your budget far easier to manage.

No Confusion: Calculating your insurance payments becomes easier when you do not have to account for the deposit. All you need to do is pay the same amount each month as long as nothing changes about your policy.

You can also have the payment drawn from your bank account which makes thing easier to manage. By paying the same flat amount each month, you can have it made automatically for you.

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Disadvantages

For the most part, there are no disadvantages when you get no or low down payment auto insurance. You will need to have to qualify for the policy, but for those who do you are getting the same service as you have with insurance with a deposit.

There is the possibility of hidden or hard to find fees if the insurance company is looking for other ways to charge you. Such fees may appear as clauses in your insurance policy where they can raise your rates if they deem the information you provide as incorrect. Plus, fees may be higher if you miss a payment or commit some other type of small breach in the policy.

However, despite these minor disadvantages, the benefits of no down payment policy are such that it is well worth your time to find this type of insurance. You save money and get what you need regarding coverage.

If you are looking for no down payment car insurance, your search starts right here as we can provide you with a free quote for excellent coverage. Our website provides you all the information needed so you can see our price and get started in qualifying for this unique type of auto insurance. This means that you can start saving today by finding the right free quote that will offer you excellent car insurance at prices that fit your budget.