Get an auto insurance quote – Purchasing automobile coverage can become expensive and depending on a person’s particular needs can costs thousands of dollars and become very hard to afford if they were to buy a policy and pay the term in full. Luckily, insurers understand this and they allow for customers to obtain protection and make monthly installments for their auto insurance instead of requiring them to pay a big lump sum upfront.

Some individuals have unique situations which would almost make it impossible for them to buy a policy in one payment. Whether a person is insuring multiple vehicles or have had a few mishaps or blemishes on their driving record, coverage can become quite expensive. Since most states’ laws make it mandatory for motorists to be insured at all times while operating an automobile, these drivers’ best option would be to find a company that will offer low start up costs or even car insurance with no down payment and pay for protection on a month to month basis to keep their policies manageable and in force.

Importance of Finding auto insurance with Low or No Down Payment

In the long run, paying for coverage in installments will usually amount to more than a premium paid in full for a few reasons. Insurers will usually give lower premiums to those who pay premiums upfront for the simple reason that they are almost guaranteed the business for the term of the policy; terms are usually 3, 6, or 12 months. Also, when policies are paid in full, the provider does not have to worry about the customer being late on their payments and lowers the chance of the customer taking their business elsewhere. Another item that makes monthly payments a bit more expensive is that most companies will charge a billing fee of around $10, therefore policyholders will end up paying around $120 extra a year in fees that are not a part of protection.

Due to the reasons mentioned above it is wise to try and find the insurer offering the lowest start up cost and payments per month. By comparison shopping, individuals will be able to locate a provider which will offer them a policy with a low or even no down payment. Consumers should be aware that “no down payment” does not mean that they will insure them without collecting any money, what it means is that they can get their protection started with just the first month’s premium and continue making monthly installments. For those that cannot afford to pay premiums in full, this is the best bet to keep coverage active and avoid a lapse or cancellation. Using government publications such as the New Jersey auto insurance Purchasing Planner can be a helpful tool when shopping and keep in mind that obtaining quotes is free so the consumer should get as many as possible in order to find the company that will help get them started with the least amount.