How to Get Affordable Car Insurance with No Down Payment
In order to land an affordable car insurance no down payment policy, one needs to be flexible. To best understand how the car insurance process works, it is good to know how the policies are marketed and sold. The policies originate from a sole insurance company such as Kemper and are either brokered out or self-sold. In a brokered situation, the Kemper family of insurance products are leased to the independent auto insurance broker. In turn, the broker pays a fee to have the right for selling the Kemper Insurance products and retains the commission for doing this. Commission structures vary from broker to insurance company, yet the main idea is that the broker receives the full commission for selling and servicing the Kemper Insurance product. The self-sold insurance policy is one that is wholly owned, marketed, then sold and serviced by the parent insurance company. In knowing how commission structures are set up and marketing preferences are obtained one can start to see where to look for affordable car insurance no down payment quotes.
Is No Down Payment True and Beneficial
There are a good number of car insurance companies that are actually brokers who have the affordable car insurance no down payment policies desired by so many drivers. No down payment quotes are usually advertised through the Internet, television, print, radio, and of course in signage on the physical insurance company’s office. Online the insurance companies and brokers are everywhere, with no down payment slogans and jingles meant to draw the prospective driver in to buy a policy. These are all well and good, yet be wary of the ones that protest too much about the elusive no money down car insurance policy. Basically the broker will receive a commission in some way if it has to take the cut out of the first month’s premium it will. The jury has returned a verdict and the answer to the affordable car insurance no down payment question is yes, at times, no at others.
Deciding to Put Nothing Down has Consequences for Monthly Payments
When finally locating the perfect and quite affordable car insurance no down payment policy, the jubilation should be mixed with a bit of intrepedation. Recalling, especially in the car insurance realm, nothing is actually free. By signing on the dotted line and accepting the complete terms of the car insurance policy, the driver is now insured and very happy. The main concern, which should have been explained in vivid detail by the broker or the customer service representative long ago, switches to the first monthly payment. If the full yearly premium for the no money down payment car policy is $850.00, then the monthly payment will be $70.83. Right? Wrong. Since the entire premium is being financed in-house there is an interest rate that can be as high as 12-18% that will be added on to the yearly premium of $850.00. With really no down payment to help offset the blow of the increased monthly payment, the insured now has a monthly payment of between $79.00 and $95.00 dependent upon the interest rate. The bottom line is that if the driver can afford any down payment, then it behooves the person to give now and save a little on the monthly payments.