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Auto Insurance with No Down Payment

Auto Insurance With No Down Payments

Auto insurers will present you two options when you buy car insurance: pay upfront for the full year or pay monthly. You’ll either spend thousands of dollars to pay the premium for the first 12 months (which yields a discount) or you’ll pay by the month. The average premium price can be more than $2,000 annually (especially if you add title drivers such as siblings, children, parents, etc). In both cases, you must pay a down payment which the insurance provider takes as a sign of good faith that you intend to stay with the company for the long term. The first month must be paid in advance. This is considered a down payment. Many companies require at least 2-3 months (30% of a 12-month plan) in advance. Auto insurance with no down payments exists in very few states. Most people choose to opt for the monthly option despite the increase in the total price they pay once the months add up. The down payment on the first month will vary by the provider – some waiver the first month. The only better deal than a low down payment is no down payment at all! The most expensive states including New York and California offer no down payment requirements. It’s possible to find car insurance at no cost for the first month in those states (save for administrative fees). The down payment is considered the first required payment you must pay before you’re insured. This payment varies by provider. Some down payments can be only the first month’s cost. Example: If you have a $100/month premium your down payment will be $100. Other companies might require a higher down payment such as a percentage of the annual plan such as $300 or $500. For most insurers, the first down payment is the cost of first month. There are exceptions, however. States That Have No Down Payment Certain states offer auto insurance policies without down payments. There are only 7 states in the country that allow you to insure your car without paying a down payment. The 7 states where you can find auto insurance with no down payments are the following: California New York Florida Washington Georgia Oklahoma Arizona Many insurance companies in the listed states will offer no down payment plans for the first month. This is an excellent money-saver for residents of those states, some of which are the most expensive in the country. If you’re paying exuberant amounts of money on gas, road taxes, car maintenance and insurance premiums the least you should be entitled to is a free month at the start of your policy.  How Much Do You Have To Pay? You don’t have to pay anything: That’s the point of no down payment insurance. The down payment in considered whoever amount of money you put up in the first month. If you’re from any of the 7 states where no down payment insurance companies operate, you can get the first month for free. You’ll, … Read More

Cheap car insurance for bad record

Cheap Car Insurance For Bad Driving Record

Did your auto insurer increase premiums because you got in an accident? Did you do violate the law in a small way such as run a stop sign and your premiums still went through the roof? Auto insurers punish traffic violators by increasing their premiums even for minor offenses. If a driver is caught breaking the law they will be deemed as high-risk by insurance companies and the insurance company will respond by increasing their premiums. Auto insurers do this purely out of economic interest: the insurance company expects that certain drivers will cost them more because they’re more prone to getting in traffic accidents. Auto insurers charge higher premiums to people of younger age who are deemed higher risk than mature drivers over age 25. A DUI is the most serious offense – it could increase your premiums by $1,000 in the same year. However, even running a red light is a major offense according to insurance companies and your premiums can increase by $500 easily. Traffic violations are different. The more severe the violation, the higher your auto insurer will increase your premiums. Auto insurers punish DUI offenders the hardest – the rates typically increase by a margin of 40-50% after the violation. Violations such as running a red light or speeding over the limit are considered less severe and only increase the premiums by 15-20%. If you are convicted in court the increases will be higher. There are things you can do to lower your premiums even with previous records. Drivers have the following 2 options: Switch their insurance provider Change their policy with the current insurer Certain large insurers turn a blind eye to previous offenses or treat them as minor offenses – they can provide savings on almost the entire average increase. It’s also possible to lower premiums on existing plans by raising the deductibles, insuring old used cars and driving less miles. Increase In Premiums Based On Traffic Violation The average nationwide premium price is $2,000 per year – this is the baseline for all premiums. The least serious offenses such as running stop signs and speeding will only increase the average by 20% or $2,200. The most serious offenses such as a DUI can run that up to $3,000 per year. The following traffic offenses can raise your premium rates significantly (ranked from least serious to most serious): 1. Running Red Lights/Stop Signs If you run a red light or a stop sign and you get in trouble with the law, this is considered a minor misdemeanor. The insurer will merely increase your rates by 15-20%. This means if your current plan is $2,000 a year, you will only pay $2,300-2,400 a year. 2. Racing/Reckless Driving If you’re caught racing, this is a more serious violation than merely running a stop sign. Racing increases start from 20% and can go up to 40%. If your current premium is $2,000 you could be paying more than $2,600 a year. 3. DUI (Driving Under The … Read More

Top 5 Reasons for Premium Increase

Why Did My Car Insurance Premium Increase? Top 5 Reasons Why!

Auto insurance companies increase premiums annually. Increases are caused due to high losses for the insurance companies, and insurers have penalties for drivers who are considered high risk. Average increases in premiums between 2018 and 2019 for auto insurance premiums were 7%. Depending on how the 10 largest auto insurance companies perform, the average rate tends to be determined by their bottom line. If an auto insurer is having a bad year they might experience a 100% combined loss ratio – effectively meaning they’ve paid more for settlements than profits they accumulated through premiums. Consequently, auto insurers raise their premiums even for well-behaving customers.  Over the past 2 years, the United States saw unprecedented natural disasters and the increase in tech-capable new cars means cars are a lot more expensive to repair – this incurs higher claims costs for auto insurance claims. Despite business factors, factors we can control are our credit score and what we do on the road. The following are the top 5 reasons why auto insurers increase premiums on customers: 1) Traffic Accidents & Law Violations All accidents and traffic violations incur higher premiums. If you receive even a parking ticket – it’s likely that your insurer will raise your premium because it deems you an unconscious driver. This is the most common reason people get increased premiums. However, some violations are considered more severe than others. The most severe violations are the following:  Speeding At-fault accidents Traffic accidents in general If you make a single claim for a traffic accident, your insurance rates are almost guaranteed to double, except if the insurer has a forgiveness program for the first accident. Certain companies will provide more leeway by offering you a buffer in which you pay a small fine and they let you keep your existing rate. Note: Auto insurers who offer forgiveness programs only forgive at-fault accidents once. If you get in another at-fault accident your premiums are going to double and you risk getting dropped from the company – after which it will be very hard to find another insurance company that won’t overcharge you. 2) Credit Score Decreases Auto insurers analyze your credit score to determine your premium. If your score dropped as a result of missed mortgage payments or any other financial issues, the auto insurer can increase your premiums consequently. In fact, auto insurers directly base your premiums on your credit score. If you have a better credit score, you will pay less in premiums. There is only one exception: California. In California, it’s illegal for auto insurance companies to use your credit score. In most cases, credit score-included premium increases are not as severe as ones from traffic accidents and traffic law violations. 3) Making Claims If you made a claim this can affect your insurance rate – if the claim is serious, your insurance provider can double or triple your premiums. This is very frequent among both major and smaller auto insurers – make sure your insurer is not adamant … Read More