First Month Free Auto Insurance

First Month Free Auto Insurance

Are you on a tight budget and need to buy first month free auto insurance just to get legally insured? Is it even possible to find such a deal in the car insurance market? Would you really be able to save some money if you purchase first month free auto insurance policy?

There are some issues to consider if you are toying with the idea of getting this type of coverage. First of all, some providers offer this type of policy and some do not. In the long run, a policy that requires little or no money upfront could cost you more with hefty installment payments.

How Does Free First Month Auto Insurance Work?

Auto insurance companies offer first month free car insurance, or very low deposit plans, as an option to gain new customers. There is a large group of potential customers who go through temporary cash crunches and need to get auto insurance, but don’t have much money at the moment. This is where some insurers offer deals that help these drivers get covered. The first month of auto insurance is free, and then at a later date, the first installment is made on the policy.

Just because the first month is free doesn’t mean the policy is cheaper. In the end, your policy will be like any other regular one. You will receive the same amount of coverage as those who make 6 month or 12-month payments, with a large upfront deposit. However, you don’t have to start paying until the second month of coverage.

Car insurance providers offer this type of discount to attract new consumers as well as clients who are renewing their policies. Some companies go even further and provide the first two months free to those customers who are renewing for a second year and have a proven track record of paying their premium on time.

Who Needs Auto Insurance With the First Month Free?

Why would anyone need to get a policy with the first month free? Here are a few common reasons:

  • A person is short on cash but needs to get insured, to get to and from work
  • Someone has lost their job and needs to get an auto insurance policy with the lowest deposit while they look for work
  • Someone just bought a car and used their entire savings and now has very little leftover to cover car insurance

Could You Save Money With First Month Free Car Insurance?

If you buy a first month free auto insurance policy, will you really pay less money overall for your coverage? That might be the case, but often it is not. This is because customers who search out these deals often have to underline financial issues. Thus, they are far more likely to cancel a policy or not make a payment on time. This is why these types of policies cost more.

However, you could find real discounts with some providers and premiums that are below the average where you live. These companies will take the premium of a standard policy, cut off the first month’s payment and give you a less expensive policy as a result. Other companies just manipulate the numbers. For example, if you buy a $600 policy for six months, and usually, you have to pay $100 per month, they could give you the first month free and then charge you $120 thereafter. Overall, you are still paying $600 for the coverage, with the only advantage of not paying anything for the first month.

Still, this type of first month free auto insurance could be useful for some clients. Let’s say you are going through a cash crunch this month, and really need this kind of policy. You will get covered for the whole month, without paying anything. Then you can work on improving your financial situation and save up to make the installment payment. Nevertheless, in the end, you won’t be saving money. If anything, you will be paying more, with a larger premium balance due, and thus higher monthly payments.

That should be clear. You might find less expensive options that result in more significant savings when paying for the first month of coverage. In order to find the most suitable choice, you should define what is more necessary for you. Do you need to save on car insurance or just delay your payments? This will help you choose wisely.

When You Are Renewing Your Auto Insurance Policy

Perhaps your provider is offering one month free of charge if you renew your car insurance policy. Well, here is a better chance to really save some money. Current clients could easily realize they are paying the same total amount even if the first payment is delayed, but the insurance policy will cost the same in the end. In fact, their rate might go up with such an offer, which gives no reason for the client to take this option. Let’s see an example:

You have bought your car insurance policy from a provider and have been paying $100 every month. Therefore, your total yearly premium is $1,200. The insurer makes an offer for first month free auto insurance if you renew your policy with them. The proposal does not imply savings on your total premium. You would not pay your upfront fee the month you renew your policy. From the second month on, you will pay $109 instead of $100 each month. You should realize that your monthly rate rises and you won’t have any kind of discount after all.

You might find this type of deal helpful in case the month you renew your policy turns out to be a tough one, financially speaking. You’ll be able to avoid the first month’s installment and pay it in the remaining installment payments that follow.

Buy First Month Free Car Insurance Online

If you are thinking about purchasing first month free auto insurance, or just need some help finding car insurance coverage, you could use our free search tool. You will inevitably end up with a policy that fulfills all your needs. Get a free online quote now and compare up to 10 rates from local and national auto insurance providers. Enter your zip code and start comparing rates in less than five minutes.

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