Car insurance with no upfront payment helps ease financial stress

Posted by Lisa Brown on June 7th, 2018

Car insurance costs, especially for young male drivers, are expensive. The premium costs are determined depending on your age, location, the type of car you drive, the frequency of hitting the road, and many other factors that may well be beyond your control. And the prices can vary drastically from a few hundred dollars at the one extreme to few thousand at the other. So, if you do not have enough money to pay the upfront deposit, you may need to look for car insurance with no upfront payment.

1. Your coverage begins only after making some payment

However, remember that your insurance cover will only begin after you pay some money right at the outset. So, technically there is no such thing as car insurance with no deposit to pay. And, you still need to pay for your coverage to kick-in. When you pay a large upfront deposit, you get your car insurance first month free, and can resume remaining payments next month onward. 

2. The flexibility of spreading the insurance cost attracts convenience fee

But when you choose to spread the costs, it can be done in two ways. Either, the insurance provider asks you to pay about 20% of the total insurance cost upfront or spread the total cost over the life of the insurance policy. If you choose the latter, you still need to pay at-least the first month’s premium. Remember, when the insurer offers you the flexibility of spreading the cost, convenience fee is levied to the total cost making it costlier in the long run. With limited or no funds to pay upfront, this arrangement works for many customers as it allows them financial breathing room every month. You stand to save a lot of money when you pay the entire cost upfront. However, that is not the case with a majority of customers who are struggling with their finances. For them, car insurance with no upfront payment despite the extra costs, provides the much-needed relief and helps them drive legally.

In addition to looking for car insurance with no deposit to pay, you can also consider monthly car insurance with no deposit. This is a short-term insurance coverage plan that also offers the provides protection for one month. With this option, you get the flexibility of switching to a cheaper coverage.