No deposit is a term that is generally used by car insurance companies to divide the cost of your premium into monthly installments. The companies use it to promote their policies while providing the ease of paying your whole worth of insurance in monthly installments. They do this by charging a good amount of money on the first month of installment, so there’s no such term as ‘No Deposit’ because they’ll recover some of it in the first month already.
What is No Deposit Car Insurance?
While buying insurance, you need to pay a definite amount of upfront deposit to get insured. But with no deposit insurance, you can easily split the amount into installments depending upon your choices; this is known as no deposit insurance. Technically, there is nothing called no deposit insurance because the companies’ first installment will be heavy and considered a deposit.
How does it work?
Auto insurance with no down payment can prove expensive sometimes, even if you have selected to split the payment. The first installments can be about 20% – 30% of the total premium. This works as a deposit for the companies. You’ll think that there’s no extra deposit you have to pay, but they have already got it in the first installment. So if you can pay it in one go, it’ll be easy for you without extra charges.
Car Insurance Quote
There’s no such thing as instant auto insurance no down payment. Major companies do not charge for an insurance quote, so if a company charges you for a quote, it is probably providing you with a false deal or is some advertisement. Car insurance quotes are free.
Why and who could buy it?
Well, car insurance with no down payment is just a myth. It is good for people who don’t have sufficient money at the signup time, but after they buy it, they end up paying even more. Even after realizing that they’ll be charged more, they still consider them to work out in their favor. However, the eligibility for no-deposit auto insurance depends on a few factors:
- Location: The amount of premium widely depends upon the type of site you are living in because factors such as crime rate, accidents, theft, etc., are connected to it.
- Car: Buying sports or luxury cars will cost you even more. Premium is directly proportional to the type of your vehicle. Big brands and expensive cars are more likely to cost more to the companies.
- History: Both your credit history and driving history are checked to determine the behavior of the person. Clean records are fewer risks for insurance companies. Also, the better your credit score, the less premium you have to pay.
So the term “cheap full coverage auto insurance with no down payment” is just a myth; it’ll eventually cost more in the long run. But for people who don’t have an amount at the time of signup, it can be considered good. However, Rapid Car Insurance Quote.com always looks for proper coverage of your car that can provide safety for your needs.