What Is Car Insurance With No Down Payment?


Quick Answer

When a customer pays a monthly premium to activate a new policy, rather than giving the provider a large payment for several months of prepaid coverage, that customer is enrolled in a policy without a down payment. Insurance companies set their own guidelines for down payments.

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Full Answer

Several factors, including a driver's credit score, accident history and criminal record, affect the price of monthly coverage and determine whether a down payment is needed. Some companies only require a down payment from new policy holders, while other insurance providers may charge a down payment each time an insured driver renews or changes a policy.

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