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Can I Get Motorcycle Insurance With No Down Payment?

Can I Get Motorcycle Insurance With No Down Payment?

Can you get motorcycle insurance without a down payment? In most cases, the answer is a resounding “No.” The reason that you are required to make a down payment when you initially purchase coverage is so that your insurer gets fairly compensated. It is somewhat similar to making a security deposit towards an apartment – collateral is necessary so that the insurer knows you are a serious customer. Companies that promise to get you a policy without an initial down payment are unheard of – you won’t find this type of insurance no matter where you look.

Why You Can’t Get Motorcycle Insurance With No Down Payment

There are many reasons why companies don’t offer motorcycle insurance without a down payment. If a company is going to start your coverage, they want to know that you are going to pay for your insurance. Typically, insurance is purchased in advance (before the coverage date) so that you have protection. If you do not make a down payment, most providers aren’t going to provide you with protection. In other words, you must first pay your insurer for their services before they will adequately insure you and your vehicle.

  • Security: One reason that insurers require a down payment is security. This gives them security knowing that you have already paid for part of your coverage. Think of it from their perspective, would you want to provide someone with services for a period of time without them paying? Probably not.
  • Seriousness: It shows that you are serious about purchasing protection and maintaining coverage. Making that initial payment shows that you will be committed to working with a certain company for a specific period of time. It lets them know that they have your trust.
  • Risk: For drivers that have bad credit or are considered “risky” due to past offenses like DUIs, a bad driving record, and/or convictions – paying in advance for coverage is smart. It shows the insurance company that you are determined to maintain coverage and show them that you can be trusted.

How Motorcycle Insurance Works: The Process

Now that you know that there aren’t providers that offer policies without making a down payment, let’s discuss how motorcycle insurance actually works. By understanding how it works, you can financially plan your way through the process.

1. Apply for Coverage

When you find the insurance provider that you want for your coverage, you fill out an application. Once you fill out the application and send it to the provider, you will need to wait for authorization or approval. Individuals that are “high risk” may get turned down, and lower risk individuals may get their applications approved.

2. Your Application is Accepted

Eventually, your application will get accepted by a company. This means that they will work with you so that you can get the motorcycle insurance that you need. They have fully assessed your level of risk and have decided that you are a good candidate for their coverage.

3. Initial Down Payment (Required)

The first down payment comes after your application is accepted and you decide you need coverage. The amount of money you are required to pay for your initial payment is up to your insurer and will depend on the type of policy you’re getting. Most companies require at least one-fifth of an annual coverage term paid for upfront.

4. Policy Is Active

Once you have made your initial down payment and settled on a “start date” for your coverage, your policy will be active. You will be covered for a certain period of time before you need to make your next payment.

5. Continuous Payments

Throughout the process, you will be expected to either pay in full or make continuous payments for the remainder of your coverage. Most people choose to pay for their coverage on a monthly basis, but many providers offer extra savings to individuals that pay in full for the entire year. It is up to you in regards to how you’d like to handle this.

Insurance Payment Plans

There are many different types of payment options that you will have to choose from when you get a policy. Obviously the degree of payment customization and flexibility will differ among companies, but most will offer you a few different options.

  • Full Payments: This involves paying for everything upfront. Instead of making a “down payment” – you essentially pay for the entire policy. Most companies provide extra savings to individuals that pay in full.
  • Semi-Annual: This involves paying twice a year. Usually a down payment is still required unless your initial payment covers an entire 6 month period. Certain semi-annual plans may require an initial payment and two more payments following the initial – it just depends how the policy is set up.
  • Quarterly: This type of payment structure involves paying four times per year. Each payment will cover you and your motorcycle in increments of 3 months.
  • Bi-Monthly: If you’d like to pay every other month, some insurers also give you this option.
  • Monthly: Perhaps the most common way to pay for coverage is to make monthly payments. Although this will end up being more expensive throughout the course of the year than paying in full, it allows people to make a series of smaller payments as opposed to paying in large chunks.

Getting Motorcycle Insurance with Low Down Payment

Although you may be disappointed that there aren’t truly providers that offer no down payment towards coverage, you will be pleased to know that there are companies that offer “low down payments.” Companies want to satisfy the customer, and by making the initial payment towards coverage as low as possible, they draw in more business. In order to get quotes and determine the company that is offering the most affordable policy, be sure to enter your Zip Code in the free tool below. This will show a list of the leading providers in your state – all you need to do is collect free quotes from each company and compare prices!

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