There are times vehicle owners may need very cheap auto insurance with low deposit. One of the reasons could be because they just want to comply with the minimum requirements to be able to drive their new automobile. You still have to insure your vehicle even if you don’t have enough money. And hardly any carrier will cover you without an initial downpayment. So you may need to go with the next best thing when what you want isn’t available.
Most insurers are happy to offer various premium payment options to help their policyholders. Most reputable carriers charge larger initial payments that serve as down payment. And there are several generally non-standard auto insurance companies who would sell policies with low down payment that is as little as one month’s premium. You would be hard pushed to find any deposit option less than a month. Such policies are commonly known as monthly car insurance.
Why You Must Put Down Some Money before You Are Insured
How often can you buy something without making any initial payment? The answer is very rarely. And don’t forget that insurance isn’t just anything. Any policy comes with liability coverage that meets financial responsibility requirements of your state and comes with proof of insurance. Now, does it make sense for a company to issue financial responsibility certificate to a policyholder who hasn’t made any financial commitment?
Besides, insurers are not keen on chasing policyholders for payment. That is why most reputable insurers make sure that premiums are either paid very rapidly or policyholders have a very good credit history before they can spread the premium payment. An insurance company becomes liable to pay for claims the moment they issue or confirm the policy coverage and they wouldn’t do that without money down. Some are happy to accept a low deposit while many insist on large initial payment even if they agree to instalment plans.
Before you can discuss the payment plans you should first find acceptable quotes. This is probably the most sensible way of going about business if you don’t want to pay over the odds to insure your vehicles. If you try hard to avoid paying a large initial down payment you may get caught by an expensive insurer who allows low deposit because they charge enough for taking a chance with you.
Definition of Super Cheap Car Insurance
This is not something that is easy to define. So, it is best to define it within context. Say you get 5 quotes online. One of these is super expensive and you naturally dump that insurer as soon as you see the quote. 3 of them are little higher or lower from each other but end up around the same ballpark figure.
A very cheap quote is the one that is way off lower than the rest. Considering you dumped the way off expensive without hesitation shouldn’t you dump this one as well?
Not so fast for many reasons. First of all, since when overachieving is a fault. However, you would want to know as much as you can about the quote. Is the coverage meet your needs? Is the vehicle insurer reliable and one you know?
Really cheap automobile insurance is the one at the bottom of the barrel. If you want to find it you need to get a number of quotes and see which one is the lowest.
Can Very Cheap Vehicle Insurance Be What You Need?
It is normal that most people wouldn’t just disregard the lowest quote. They can serve your needs in the following circumstances.
- You can hardly even afford an insanely low quote and therefore you are not much choosy. Considering around 15% of drivers are uninsured in the USA it is not hard to see the need for really low-priced auto insurance.
- Your main concern is to comply with the minimum requirements set by your state. You are not looking to buy any coverage for your own automobile and therefore unlikely to make a claim for damages to it.
- You believe that you are a very good driver who hasn’t had a claim for years. So, you are confident you aren’t going to make any claim but want to buy insurance just in case. Besides, you think you are paying too high premium currently even though you have such a good record.
Finding an attractively priced policy can be a better option than dropping coverage to fit the premium to your budget, especially when you have a long no claim history.
- You looked at the coverage offered and you don’t see any problem with it and you can comply with its conditions.
- You are also happy with the insurer’s reputation and you cannot see any problem with the quote.
Really Cheap vs. Cheaper Car Insurance
Our definition of cheap vehicle insurance refers to an uncompromised coverage provided by a reliable but competitive insurer. In other words, you get as good a cover as you would with any other company that offered you a quote. And you choose the best-priced one out of many quotes. You are confident in the insurer and coverage provided and there is no doubt that your claims will be paid as usual if you ever make one.
A super low quote arouses suspicion right off the bat. Your first thought is that it is too good to be true and perhaps it is since there may be conditions attached to the cover. Furthermore, you have very vague idea who the company is. You are not sure about the agent either.
Maybe you come across a great quote and you cannot see any problem with it. Maybe you have a hell of a find in your hand since the only thing that is less is the price. Therefore, it doesn’t mean that you should be overly concerned with it but you should make sure that you are not missing anything.
Probably, you would be more comfortable if the quote comes from one of the top insurers in your zip code. You would be happier if you discover that the coverage offered is good enough and you could comply with the conditions. So, you should check these carefully first.
Here are some examples as to why you may be fine with the most competitive quote;
- The quote may be very low because of higher deductibles. As long as you are happy with the level of deductibles there is no problem.
- Another reason may be that it is a named driver insurance which covers the listed drivers only and there is no coverage for any other occasional driver. Again, if you have no intention of letting anyone else drive your car there shouldn’t be a problem either.
This condition is likely to be included in sports car insurance. An insurer can only offer you a reasonable quote for a sports car if they know that you are a good driver and they can eliminate other unknown drivers.
- The company may be primarily operating online and there aren’t high street agents they work with. If you are comfortable with minimal or no high street presence and dealing with your account online there is no reason why you should pay more. Many companies and policyholders are very happy with communicating online with each other these days.
Who can say you cannot get bargain car insurance with low deposit and have it all. You cannot drop a quote just because it is much lower than the rest. There has got to be something wrong with it to do that. If you carried out due diligence by checking all the fine details and asking all the right questions you probably found yourself a real deal and a bargain.
Can a Much Lower Vehicle Insurance Quote Be Scam?
When a quote is much lower than the rest first thing that comes to mind is that it may be a scam. There have been few cases where people were sold fake insurance. Authorities and enforcement agencies are much better equipped to crack down on such scams since then. It is not easy to run a fake insurance company in America but one or two rouge agents can set up shops for quick heist. So, it is always best to be on your guard no matter what the price is.
Busting Myths about Scamming
- It is important to stress here that anyone can fall victim to scammers regardless of the cost of their insurance. It is total nonsense to think that only attractively priced policies would be scam.
- Also, you are statistically more likely to be scammed in a face-to-face transaction than online.
How to Avoid Insurance Scams
Ultimately, you need to make sure that you buy a policy from a reliable source and the security behind it is solid. Here are a few tips to help you.
- The Internet works with links and you are likely to be redirected to other sites when you are getting quotes online. For example, our website would redirect you to the official website of the carrier you choose so that you can buy your policy directly. However, you should make sure that you are landed in the right page or site and haven’t been diverted to somewhere else along the way.
- You should make sure that you are buying the policy from a licensed company or agent. It is alright to get quotes but you should check a few more things when it comes to paying for a policy. Check that the website clearly advertises their insurance license number. Also, check to see that you can confirm their address and other contact details.
- Make sure you can download or get your policies and insurance card in a timely manner. If there are delays you should follow it up.
- Never pay cash or with money order for your policy.
- Watch out for over-eagerness, pushiness, things that don’t make sense. If you are getting quotes online make sure you are on an official website when you need to enter sensitive information like your social security number. Just walk out when you feel something is not right. Always keep your guard up with common sense.