If you are purchasing car insurance for the first time, or shopping around to try and find a lower rate, you probably have questions about the process. Finding the best rates for the coverage you need can seem daunting, not to mention frustrating. There’s no need to feel overwhelmed. You just need a few facts to make the process painless and then compare multiple quotes online.
Remember, you want reliable coverage at the best price possible. This means buying the most coverage you can afford, so you protect the assets you have worked so hard for. You can use an online tool to help you shop and compare multiple insurance carriers prices. Using a free service like this is a great place to start to comparing policy prices. However, before purchasing insurance, consider calling a local insurance representative to ask for a quote as well. Insurance agents are often motivated to sell you a policy and they sometimes have their own interests in mind. However, they can get you different discounts that you might not be aware of and sometimes get you a better rate than budget providers.
Car Insurance Down Payment Costs
If you can afford to pay the entire price of your policy upfront, this is usually the cheapest way to get insurance. You will also get a discount of up to 10% with most providers. Insurance carriers deem these types of customers as less risky and less likely to cancel their policy.
In addition, most insurance companies charge a per payment processing fee between $3 to $15. Factored throughout a year, that adds up to significant savings if you can pay upfront. You also don’t have to worry about another payment each month when you pay in full and upfront.
Since that is not always possible, you will need a payment plan. You will need to make a down payment to activate your policy. You can expect to pay anywhere from 8% to 33% of the total premium for your policy as a down payment. Some companies have very cheap car insurance with no deposit that can save you a lot. Not everyone will qualify though. For those strapped for cash, it can be a real help.
Factors That Affect How Much Your Down Payment Will Be
- Your driving history
- The car you drive
- How old You are
- Whether or not you are a new customer
- Your credit history
- Where you live
You might ask, do you have to pay first and last month for car insurance? Unlike rental agreements, auto insurance does not require that you pay your first and last month’s premium upfront. If you are making installments and paying your premium by the month, then you are only covered once the payment is received. The insurance company is assuming no risk by not requiring you to pay your first and last month’s coverage.
Most insurance companies accept multiple forms of payment. When deciding how to pay, it is recommended that you set your payments up on automatic withdrawals. Not having the payments drafted each month could leave you with a catastrophic gap in coverage if you are late with a payment. There is no grace period with some insurance policies and coverage can lapse the first day your payment is late. Not only does this leave you with no coverage, in the event of an accident, you may incur fees and penalties to reinstate your coverage.
How To Find The Most Affordable Auto Insurance
Car insurance rates can vary dramatically between carriers. This is why you need to review multiple quotes. However, the first step is determining how much insurance you need. If your vehicle is financed, your lender will set a minimum requirement that includes full-coverage insurance. Full coverage means that the insurance you have to buy will cover any liability if you are at fault for damage to someone else’s vehicle, and will also cover the costs of repairing your vehicle. The minimum requirements for a vehicle that is financed usually stipulate that the coverage must pay off the vehicle in the event that it is totaled in an accident.
Each state mandates that you carry liability insurance as a minimum to comply with state laws. Liability insurance only covers the damages, both bodily and to a vehicle, that you may cause to someone else up. Coverage is up to the policy limits. If you only carry liability insurance, you will receive no compensation to fix damages or replace your vehicle. Because it includes less coverage, liability insurance is the cheapest. In some state you can get liability only plans from $30 a month, or about $1 dollar a day car insurance
You can get cheap car insurance with a $20 down deposit with select providers. Remember, liability coverage must comply with your state’s minimum coverage requirements and provides no protection for damage to your vehicle. Full-coverage insurance is more expensive because it provides coverage for any damage to the vehicle you drive. The cost of insurance will depend heavily on the value and the type of vehicle you drive. Sports cars cost more than SUVs, even if they are of equal value. New vehicles will cost more to insure than older, used cars.
Once you understand the type of insurance you need, use an online tool that will let you compare rates from regional and national providers. When you receive your quotes, compare the coverage offered. When you understand the cheapest quote for the coverage you need, including deductibles, then call a couple of local insurance agents. See if they can provide you comparable coverage for a better price.
If a local agent can provide you similar coverage at a comparable price, then there are advantages to having an insurance office close to your location. It makes it easier to call about claims, make changes to your coverage or to ask questions. Get started now by comparing free car insurance quotes online and get the low rates you deserve.