For some this means going without a personal vehicle and for others, it means driving without coverage. This is illegal in many states. In California, you are required to meet minimum coverage laws, so operating a vehicle without coverage can result in fines and punishments. And if you think you can get away with driving without insurance, think again. The motor vehicles administration works closely with insurance companies to guarantee all licensed drivers have the minimum required coverage.
So what do you do if you are a driver and you need coverage, but you do not have a chunk of money to pay upfront? Luckily, there are options that require no upfront payment. This 0 down auto insurance is the best option for many drivers, especially those who would rather divide their premiums into equal parts and pay over time.
0 down auto insurance means you pay nothing upfront. Anything that is due when your policy starts is an equal portion of your entire policy. This means if the total cost of your policy is $600 and you are able to spread your payments across six months, you will pay the premium charge of $100 per month. You are not saving money on your overall policy, but you are able to make installment payments. This is the best option for many drivers, especially those whose finances are stretched to their max.
What to Avoid
It is important to understand what you are getting when you choose a 0 down auto insurance policy. Some less-than-ethical companies might try to convince you that dividing your payments into installments means you are not eligible for quality coverage. Others might try to overcharge you for the policy, hiding behind the fact the payments are spread out. You should not settle for either of these scenarios. Your overall cost should be reasonable and your insurance coverage should be the same as if you are paying for the entire policy upfront.
Keep in mind you might not qualify for certain discounts if you choose 0 down auto insurance. If a policy is worth $600, expect to pay the entire $600 if you divide the payments across several months. Paying upfront might entitle you to a discount, perhaps offered in a percentage of the total. For instance, the policy might be offered for 10% off and the upfront payment would be $540. This is a discount for those paying in a lump sum, not actually a cheaper policy.
Even if you choose 0 down auto insurance, you can still ask for discounts unrelated to the payments. If you have multiple vehicles or a flawless driving record, you might be eligible to save money. To learn more about 0 down auto insurance and find the policy that is right for you, by using our free search tool.