Finding No Down Payment Auto Insurance

Could no down payment auto insurance exist? Some people may believe that it does while others might not. It could be hard to find, but it typically may exist. You may want to take a look into the nature of some of the indemnity companies that may offer auto insurance with no down payment to understand it a little better.

Credit Oriented Indemnity Companies – Some insurance companies may run credit checks before issuing a policy to a motorist. If a client has good credit, he or she may be able to obtain a lower rate or acquire a no down payment auto insurance policy. The insured or agent may generally have to bring in the down payment. If they do not, they may be reported to the credit bureau, and the amount may come out of the agent’s commission. However, preferred providers might not generally offer no down payment auto insurance.

Non Standard Indemnity Agencies – Since non-standard companies could be typically less likely to check a customer’s credit, it may be much easier to obtain lower quotes this way. These insurance companies might typically expect some type of payment before issuing auto insurance with no down payment. There could be some states that may have laws in place about not paying policy premiums, in which case policies may be canceled. In Illinois, a policyholder might typically have 10 days after the premium due date to pay.

The credit bureau may not receive word that no down payment was received and the customer’s credit may not be checked; however, they might have to pay for the entire period of coverage that they want in advance. There could be typically two options that insurance policies may be broken down into: no down payment auto insurance and insurance with monthly payments. A customer who makes a down payment may typically have to make a monthly payment as well.

So, even if they might not be required to make the down payment, they may generally have to make the monthly payment. Two things someone may want to consider when considering a no down payment auto insurance policy could be to compare the cash amount if they think they might be interested in paying in full against the total amount that may be paid under different conditions. You may want to read “Pros and Cons of Car Insurance with No Down Payment” for more information.