Buy Now Pay Later Car Insurance

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Low Car Insurance down payment helps when you are short of money but need auto insurance. It might sound too good to be true, but there are several companies out there offering this kind of cover. Some may require zero deposit, meaning that you can get this insurance cover without paying any money upfront. Others ask for a large down payment and then distribute the balance over a number of months. In either case, the insurance companies are giving car owners a chance to distribute affordable payments over a number of months.

car-insurance-down-payment

Owning a vehicle comes with a huge responsibility and high running costs. One huge cost is car insurance which is required by law in all states in the United States and protects car owners against loss, damage, or liability. Take it as a risk-management strategy to protect your asset from damage caused by fire, floods, accidents, self-ignition, burglary, theft, strikes, riots, terrorism, etc.

Why Is This Policy More Expensive?

It might seem cheaper getting car insurance cover without an upfront payment, but it’s not cheaper at all. It is more expensive than a once-off payment, but the monthly payments are manageable.

Why? Insurers consider clients who cannot afford a down payment riskier than those that pay for the annual cover in full upfront because:

  • Some customers purchase car insurance with zero down payment, only to cancel it later when the payment is due.
  • Others use this type of policy to register a car in compliance with dealership rules, and then cancel the coverage soon after.
  • Some make a few premium payments then stop paying altogether.

This type of client is riskier and insurers are looking to reduce the risk as much as possible. That is why some insurance companies request a down-payment before the policy kicks off. This first payment covers costs that come with acquiring a new customer, which includes advertising and administrative expenses. When a client opts for zero down car insurance, the carrier takes care of these costs. Nonetheless, the client makes up for these costs later on through higher premiums.

Because of the risks, car insurance down payment costs about 10% more than upfront car insurance. The good news is that, despite the risk, several insurers in the U.S. offer car insurance for free in the first month (zero down). This allows the customer to pay the down payment amount in the second month of coverage.

Installment Options

Installment Options

Currently, customers have several payment options for buy now pay later insurance. They include paying the full amount for a premium of three, six, or twelve months, or opting to make payments in installment terms. Several customers go for the installment payments option since they cannot afford to pay the full premium cost. The different methods that are available to pay for your premium include:

  • Credit card
  • PayPal
  • Cheque/money order
  • Automatic bank withdrawal.

States that Allow Buy Now Pay Later Zero Down

It is crucial to understand that getting insurance for your vehicle is compulsory in all states, but not every state gives insurers the freedom to offer zero down policies. States that have such offers include:

  • California – it has the most automobiles and companies that offer zero down auto insurance.
  • Nevada
  • Washington
  • Florida
  • Arizona
  • Oklahoma
  • Georgia
  • New York

Companies that offer Zero Down Coverage

There are a number of select insurers that offer buy now pay later auto insurance with nothing down. These are:

  • Safe Auto Insurance
  • All State
  • Rodney D Young
  • Nationwide
  • Farmers
  • Young America Insurance
  • Geico
  • Progressive
  • State Farm
  • Esurance
  • Kemper

Types of insurance cover

Acquiring vehicle insurance cover is essential for peace of mind because it prevents financial ruin should you cause death, injury or damage to a third party. It is also compulsory. It is a requirement whether you buy a new or used car. The three types of car insurance are:

  • Liability – This protects you against any legal or financial liabilities to a third party in case of accidental damage to another person’s car. But it doesn’t protect you in case of damage to your own car.
  • Collision – This policy pays the cost of repairing or replacing your car after being damaged in an accident whether it is your fault or not.
  • Comprehensive Cover – This covers you against liabilities to third parties (death, injury or damage), against theft and against damages that may be caused by an accident, fire, floods, etc.

Tips-to-Save-on-Car-InsuranceTips to Save on Car Insurance

Insurance is expensive, but it can be more expensive if a car owner drives too many miles per year or keeps getting involved in accidents which result in too many claims. Here are a few tips for saving on auto insurance:

  • Reduce the distance driven to about 800 miles per month. It will save you 10% or hundreds of dollars per year in Low Mileage Discount.
  • Always drive safely by following all the traffic rules and maintain a clean driving record. You may receive a no-claim bonus which acts as a discount on your next premium, and a safe driver discount of at least 25%.
  • Enjoy lower rates by maintaining a credit score higher than 700.
  • Save 10% or more on your premium by choosing a higher deductible of $1,000 or more.
  • Install Telematics Program to monitor the times of day you drive, sudden changes in speed, and mileage. It helps you save about 15% or more in premiums.
  • Install safety features such as anti-lock brakes, airbags, and GPS-based security systems to get 3% to 5% in discounts.
  • Get all the discounts possible, including multi-vehicle discount, senior citizen discount, good student discount (about 15%), military veteran, garage parking, etc.

Whether you have money or not, it is your duty as a car owner to make sure that your car is insured at all times. The best option is to pay upfront for the policy because that comes with a paid-in-full discount of 5-10%. If you can’t pay upfront for cover, you can get a very low or zero car insurance down payment.