No Down Payment Online Vehicle Insurance Facts
No Down Payment Online Vehicle Insurance Facts: Every consumer would like to get insured with a little money as possible, but there are details about doing so that should not be overlooked. Not having to pay a down payment does not mean that a motorist will simply sign on the dotted line and walk away insured with a policy in hand. The fact of the matter is that insurers must collect some sort of premium prior to issuing policies, therefore, consumers should not assume that there is such thing as getting covered without paying anything up front. In the industry, getting insured with nothing down means not paying anything but the cost of coverage (usually the first month.) Otherwise, carriers would not be able to stay afloat if policyholders were to be involved in accidents prior to collecting payments.
Motorists should also be aware that deciding to purchase a policy without putting anything down and continuing coverage with monthly payments can result in additional fees throughout the length of the policy’s term. Many insurers will charge policyholders a monthly billing fee to sent out notices and process payments which is usually in the area of $8 to $10 per month. The Washington State Office of the Insurance Commissioner suggests paying premiums every six months to avoid such fees. Over the course of the year these small fees can start to add up and can be avoided by paying premiums in full. Although it may be worth it to pay a small monthly fee for drivers who cannot afford to pay up front to simply stay insured. Another way a policyholder may avoid incurring these additional costs is to have the payment automatically debited from a bank account each month; many companies will waive such fees for doing so.