Pros and Cons of Vehicle Insurance with a Low Down
The obvious advantage of finding a car insurance carrier that will offer a policy with little down is that consumers will not have to break the bank and pay a premium in full. Instead the motorist will pay the start up cost and go ahead with monthly installments to continue coverage for the remainder of the policy’s terms which is usually 3, 6 or 12 months; at this point the policyholder can choose to renew or the consumer will have the option to take their business elsewhere. Taking this route can help a person get covered if they cannot afford to pay for the term up front and also leaves a little bit of freedom to shop around and find cheaper carriers without having to wait for a refund of the premium had it been paid up front.
Finding a policy with a low down payment may be the only option for some individuals, but they should also be aware of the down side of doing so. A lot of times it will be much cheaper to get insured by paying for policies up front and in full; many companies charge a monthly billing fee in the $10 range which over the course of time can add up to quite a bit of money not being spent on coverage, but rather on fees. Some insurers also offer cheaper premiums to consumers who pay for a term in full whether it is 3, 6 or 12 months; usually the longer the term is being paid for the lower the cost of the policy.
When an individual is looking to purchase coverage they should ask if there is a billing fee, how much it would cost to pay for a full term and if there is a way to get around fees; certain insurers will waive the monthly fee is the consumer allows the payments to be directly debited from their checking account. One can also use a tool such as the New Jersey auto insurance Purchasing Planner which will arm them with questions to ask when shopping for policies.