Many people can’t afford the high down payment that some insurance companies are asking. So you may have to search around a bit to find the lowest down payment. You may have just got a new car and now your looking to get insurance coverage. Or perhaps you are just looking for a new insurance company all together. There are several companies that have started offering low down payment insurance policies since many people can’t afford such a big lump sum. Here are some things that you can do to make sure you are eligible for low down payment car insurance.
Of course if you have decent credit you shouldn’t have to many issues with the down payment. There are several companies that will check your credit score before you apply for any insurance. So it might be a good idea that you first check your credit history. If you have bad credit history, there are ways that you can improve this before you try any company. As a rule, if your credit score is below 500 then you will have to pay about 10% of the entire insurance policy in advance. You will also attract higher interest rates due to your bad credit history. We suggest you check every three months, and then try to improve it if possible.
If you have issues with your credit there our other ways to go about getting a lower down payment. You can compare auto insurance quotes from a variety of companies that offer lower payments through monthly billing cycles. Usually, companies will ask for a payment that will cover three months of insurance. But when you switch over to a monthly payment, you will have to pay just for a month. This way you can choose to make payments every month to keep your policies in force. With many companies you will find that payment options are offered based on personal preference.
Even if you have bad credit history, don’t worry; insurance companies will still want your business. If you take several quotes and then compare them, you are more likely to get a better deal. It would be a good idea for you to show the quotes to every insurance company you get in touch with. This will make them reduce rates even further.