If you need to obtain car insurance quickly, but you do not have the money for a large down payment, you may be wondering about "no money down" car insurance. Finding auto insurance with no money down is not easy, but there are still ways you can minimize the cost of your first payment.Very few companies offer "no money down" car insurance. This is because an insurance policy is a contract, and in order for a contract to be valid, there must be an initial payment. For this reason, the typical insurance policy cannot provide coverage until a down payment is made.
Although it may not be possible to find this type of insurance, your initial payment does not have to cost you a small fortune. Companies that work with people on a tight budget may not be able to offer auto insurance with no down payment, but they can typically provide other options.One such option involves dividing the policy premium into monthly payments. In this case, you pay for one month of coverage at the beginning of your policy, instead of paying for the for the entire policy term up front. This can dramatically reduce your initial payment, and get you the coverage you need without a large up front investment.
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There are a couple of things you need to watch for, though. Some of these companies charge a "policy initiation" fee, which can be as much as or more. Also, some companies charge "installment fees" for monthly payments - standard companies may only charge a dollar or two, but companies that specialize in non-standard or "high risk" drivers can charge as much as per installment. Over time, these fees can quickly add up, costing you a lot more than necessary for your auto insurance.While obtaining "no money down" insurance may be an unlikely prospect, agreeing to monthly payments can be a convenient way to get the coverage you need. If you are willing to pay the extra fees, this can help you meet your state's insurance requirements without ruining your monthly budget.Getting No Down Payment Auto Insurance