Auto Insurance With No Down Payment, Is It Possible?
Cars are increasing day by day and so are the rules of the insurance companies which cover these cars in case of an accident
. Times are changing with the insurers rules and regulations changing as well. As the government has made insurance of vehicle as a mandatory factor people who buy a car have to get it insured. However some people can afford a car but not the down payment that goes to buy insurance for the cars. People have spent so much in buying the car that they have to make arrangements in getting the down payment for the cover. There are a few insurers who do provide Auto Insurance with no down payment. However they follow certain strict rules while doing this.
What they do usually is, check for 'who' requires the insurance? The person who is requesting for the cover should be a one who is financially secure and will not stop paying for the further installments.
This person has to have a proof that he will not be a defaulter and even though he cannot pay upfront he will pay the rest. Most of these companies ask for the down payment along with the first premium or ma take some money in advance which is equal to the premium amount but less than the down payment amount.
What the insurers see next is a sound road record of the person who is requesting for the insurance. If the person has many tickets issued on his name the insurers will not issue any down payment policy for such a person. The insurers are very strict about these things and will follow them outright. If the person has had many accidents and that to due to his fault then the company will not even consider his request.
The insurance company needs and will insure only those people who will not be a risk to them. If the company has to make payouts to people at an early stage of their policy, the company will be at a loss and will never want that.
Auto insurance with no down payment is not a very good option as the insurers may sometime ask for some kind of fees or charges along with the regular premium and these fees do not count in the cover money, they are simply dead money paid to the company for not paying a down payment. So in turn you will result in paying more money to the insurers.
