No Down-Payment Car Insurance | Auto Insurance

Car Insurance with No Down Payment: Driving On a Budget

Most of the States make it compulsory for all legal owners of a vehicle, whether two wheeler or four wheeler, to have a minimum amount of insurance coverage depending on the state that they are in. But many people would back out because the first payment would be a bit too hard on the account balance.

On average a person has to pay a total of about $15000 in a year for secured coverage of the pattern (20/40/10) i.e. a Bodily Injury Coverage per individual of $20,000, per accident of $40,000 and property damage coverage of $10000. Hence total coverage comes up to $70,000. But still a down-payment of $15000 is no joke for a normal family. This is why most of the vehicle owners look for car insurance with no down payment facility.

Luckily intense competition amongst the Insurance companies has led to a happy development on this frontier, the system of No Down-Payment Insurance Coverage. Now, most people would think that this means that the insurance involves no payment at the inception of the deal, but actually this means that the policy-seeker does not have to pay the whole amount right there

However, instead is given the option of paying in a number of easy monthly installments over the course of a year or more. So this would mean that the man will have to pay at around $1500-$1600 a month but still enjoy the full benefits right from the beginning.

Advantages of No Down-Payment Car Insurance

This is a breath of fresh air for many people with a family to support because it brings the whole package of car insurance within the grasp of their monthly income. With the payment of small amounts at a time one can enjoy the full benefits up-front.

Definitely the payments continue for some time, mostly over a period of 12-18 months but the benefits are obvious. Another class that can fully utilize this system and support it is college students. They are mostly paying through college either on scholarships or part-time jobs. Hence the prospect of paying the full amount up front is nothing less than daunting. But this system is just what they needed.

Disadvantages of No Down-Payment Car Insurance

Set against the pros the cons although small are still significant. This system comes with the curse of revenue or interest. So if the number of payments are more the amount is less, but the time increases increasing the revenue.

This system has become so popular in most states in US that Insurance companies are actually assisting people to get in. All in all this system is very useful to the common man and should be taken a look at.
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Source: http://www.carinsurance60.com/car-insurance-with-no-down-payment-driving-on-a-budget/

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