Tricks To Help Find Cheap Down Payment Car Insurance

Car insurance is one of those things in life that everyone needs

, but hopes never to have to use. Most countries and states have set certain minimum liability limits on car policies that must be met in order to operate a vehicle legally. However, the cost of insurance continues to climb. Here are a few tricks to help a person find cheap down payment car insurance.

The first trick is shopping around for the best overall price on the coverage that is needed. There are often hundreds of companies licensed to underwrite policies in any given area, though it is possible that only two or three have agents operating in that area. The internet can be a very useful tool for shopping as it allows one to locate many of these "hidden" companies.

After one has narrowed to field to just a handful of possible policies, it is time to look at the payment terms each requires. Almost all policies are written for a fixed time period of six months or one year. Some companies demand full payment up front to be covered. Others allow for half down and half in thirty days. Still others allow for a down payment followed by monthly payments during the term of the policy.

These last are the ones most likely to offer cheap down payment car insurance. The down payment is normally equal to two months' premiums, followed by the regular monthly amount. In this fashion, the companies have one month's premium in reserve in case the insured is a few days late with the next payment.

Another trick to consider when shopping for insurance coverage for a car is raising the deductible amounts on the policy. This has the effect of reducing the insurance companies' liability in the event of an accident, thus lowering the amount one must pay for coverage.

Combining coverage with higher than minimum deductibles and a monthly payment plan that allows for a small down payment is usually the best method of acquiring cheap down payment car insurance. Throw in shopping around and comparing quotes from as many different companies as possible, and one creates a recipe for saving a great deal of money on a service that is essential to protecting oneself from financial hardship in the event of an accident.

Finally, if one has an ongoing relationship with an agent for a particular company, there is a chance that the agent will work with one to lower the amount of money that must be paid up front. This is rare, however, because the agent would be, in effect, reducing his/her own commission to help a customer.

by: Alexis Ford

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