Your best bet is to weigh the pros and cons of purchasing with zero down. This way you can determine what is best for you based on your personal circumstances, regardless of the common consensus.
Your personal circumstances are different than others and your circumstances might change over time. For instance, the longer time passes between a traffic violation and your current quote, the lower your rates will be. This is why it is so important to compare rate options and determine what the pros and cons of purchasing insurance with zero down are for you.
Zero Down Insurance Might be More Expensive
One of the most common questions about zero down auto insurance is whether or not it costs more. On paper it does not. You are quoted a price based on your qualifications and the cost of the policy. This is the base price to which discounts might be applied. For instance, if you have a flawless driving record, you will receive a good driver discount that will stay in effect unless something changes.
The same is true for zero down policies. Quotes are usually based on a driver putting zero money down, but if they pay up front, a discount could be applied. Insurance companies will offer a lower rate to someone who gives a stronger commitment. If they know they are going to get your money upfront instead of waiting for installment payments, they are more likely to offer a discount.
Zero Down Insurance Might Require a Longer Commitment
Many insurance policies levy no penalty if you decide to switch policies or providers. However, there are cases when you must commit to a certain length of coverage in order to receive the rate you want. If you are looking for month to month insurance, zero down is not an option because you will need to make a payment immediately and then each month. When choosing a policy, ask if you are legally required to commit to that coverage for any specific length of time.
Zero Down Insurance Should Offer Adequate Coverage
Some drivers are concerned about receiving insufficient coverage if they do not pay for a policy upfront. Insurance companies should offer essentially the same policy coverage whether you are choosing zero down payments or you are paying upfront. There might be slight differences, but overall your coverage should be adequate. Before making a commitment, ask if the coverage is the same for the zero down insurance you are considering.
If you would like to know more about the pros and cons of purchasing insurance with zero down or you are ready to search for a policy, use our free search tool for rate quotes you can compare.