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By Jim Bassett
It absolutely is however you have to be smart and keep your eyes and ears open to find the right company that will offer this to you. When you decide to pay the premium to indemnify your car, the best way to purchase it would be paying full payment upfront rather than settling for shelling out money in installments and subsequently, for the added interest on that. This way, you can subscribe to the no down payment auto insurance policy which is the best way to go.
Why would you want to buy cover for your vehicle in installments and increase your outgoings? It is akin to taking a loan to protect your car. Already, in all probabilities, you would have taken out a loan on the purchase of your vehicle.
You would rather get done with this one-time small payment than take on one more installment, that would inevitably come out of your own pocket. This is not advised in this cash starved times. You would rather own the insurance policy entirely and the security of your car. Be wise and ease your monthly expenditure.
While it may be a lucrative offer that the company is offering you, do remember that the down payment is just a part of the entire premium on your insurance. You will end up paying more on the interest on the installments and eventually the premium will be more than the cover you have insured your car for!
If the entire premium amount scares you, try looking for an inexpensive cover for your car. That way, you will at least have the cover than nothing at all. Once you are done with this minuscule payment, the only loan you will have to concentrate on is the car loan. That will prove to be a less headache when the debtors come knocking on the door.
You must weigh your options and make the best decision suitable to your budget and requirement. There is always some catch in the installment payments so beware. Consumer forums report that such EASY loan and pay-back facilities have been created to extract more money from the customer and one should be aware about such schemes.
You would rather maintain a good credit history by paying upfront than worry about meeting the deadline to clear this expense every month. Think about it, what if you are not able to pay the premium at some point due to job loss or an unforeseen expense? Your policy will lapse, you will notch up bad credit to your name and when you would want to renew your cover, you will have to pay a higher premium than before. Paying the sum at the beginning of your purchase will also show the authorities that you are a serious owner and driver and do not have any intention of causing trouble. All these small things do count in building up a good reputation.
Since not too many companies encourage the no down payment auto insurance purchase terms (they would rather you pay it and earn extra income on that), it is best to look around the market before fixing on a firm to make the purchase.
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Source:
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