Car insurance costs can be expensive, especially in the state of Michigan. Lots of people choose to pay monthly on their car insurance to make it fit into their budget. Sometimes when you are getting quotes for car insurance the initial down payment can be a real shocker. Some insurance carriers want payment in full for six months, some want two months down, and some will offer one month down, it really depends on the insurance carrier, your method of payment, and your prior insurance history.
So how do you get the lowest car insurance down payment possible?
Payment Method: The most common way to get the lowest down payment is to select automatic withdraw as your payment method. It is also referred to as electronic funds transfer or EFT. This is where the insurance carrier pulls your monthly payment directly out of your checking or savings account. EFT payments have more benefits than a low down payment. It also allows you to avoid payment fees and late fees.
Prior Insurance: Whether or not you have had insurance for the past six continuous months at the time you purchase a new insurance policy can affect your down payment. If you have had a lapse of coverage, it is going to be difficult to find a one month down payment car insurance policy. Always do whatever you can to keep an active insurance policy in place.
Get more helpful tips on reducing your overall car insurance costs. A lot of factors go into determining your car insurance rate. Lowering your overall insurance costs will also lower your down payment. Check out: “The Ultimate Guide to the Cheapest Car Insurance”.