by Guest » Tue Jul 13, 2010 07:11 am
I know it's gonnabe difficult and it's rare that an auto insurance carrier won't ask for a down payment while signing up. But I guess there are quite a few companies out there, who'd club the DP with my first bill. I'm in real need of coverage but not in a position to pay the $100 worth of DP right at this point. Is there a real possibility that I'll come across such carriers? What could be the challenges in the long run?
Posted: Tue Jul 13, 2010 04:51 pm Post Subject:
Most carriers have a monthly pay, four-pay (on a 6-month policy) or a ten-pay (on a 12-month policy) plan that does not require a "down payment" -- but if your premium is $1000 for a year, your payments will still be about $100.
Depending on your state of residence, you may be eligible for some form of low-cost auto insurance. Check your state's Dept of Insurance website to find out.
Posted: Wed Jul 14, 2010 05:13 am Post Subject:
You won't find a single carrier (or at least one I've ever heard of) willing to bind coverage without a down payment when you're trying to buy the policy in the first place. It has nothing whatsoever to do with an insurer's "willingness" to do something like this; it's completely tied to contract law. Without any money, without you giving the insurance company something, there can be no legal contract.
In order for the insurance (or any) contract to be valid, legal and enforceable in court, it has to contain certain legal elements, one of which is referred to as the "consideration." A consideration legally, is an exchange of values. Each party to the contract must give the other something of value- money, property, etc. In insurance, the applicant for the policy gives the company statements in the application and the payment of premium. In exchange for the applicant's consideration, the company will give the applicant the promise to pay the benefits cited in the policy (the coverage).
In other words, you don't give them money- they don't give you coverage.
Now, if you have a policy in existence, you should be able to add a car to your current policy without giving them a down payment, but this doesn't apply to getting the policy in the first place.
Sorry. As I tell my students- "No money equals no coverage."
InsTeacher 8)
Posted: Wed Jul 14, 2010 11:50 am Post Subject: insurance
OP...there are ads, on TV, about Insurance companies, that have LOW down payments. But, I've never heard of NO down payments, at all. Remember.....always check out the 'ratings' of an Insurance company before you decide.
Posted: Wed Jul 14, 2010 01:11 pm Post Subject:
it's completely tied to contract law. Without any money, without you giving the insurance company something, there can be no legal contract.
Is it the same for all states across the U.S. ?
there are ads, on TV, about Insurance companies, that have LOW down payments.
Do all of them have low ratings?
Posted: Wed Jul 14, 2010 06:11 pm Post Subject:
there are ads, on TV, about Insurance companies, that have LOW down payments.
And Dawn dish detergent commercials show how it "cuts the grease" and you watch the oily crap float to the surface of the water. Anyone ever think about the fact that the dish is still UNDER WATER and has to come up through the grease?
An ad can say anything it wants. Only one person ever had to get the "low down payment" to prevent it from being a lie. Maybe it was the president's daughter-in-law ten years ago.
Insurance companies/agencies do whatever they feel is necessary to attract business. "The General" advertises low premiums and low down payments. I once called for a quote. Told me they could save me $150 a year, and did I want to take advantage of their 10-pay plan? Only charged an $15 extra per payment for that convenience. Fortunately for me, I'm good at math. 10 x $15 = $150. Some savings.
Is [contract law] the same for all states across the U.S. ?
Generally speaking, yes. To have a valid contract, four elements must exist and be present: (1) valid legal purpose/form (2) competent parties (3) offer & acceptance, and (4) CONSIDERATION.
Consideration, simply put, is something of value. You have money, the insurance company has money. You give them some of yours today, they promise to have some of theirs available to cover your losses according to the contract they offer and you accept.
When you give a "down payment" or the "first monthly payment" for a contract of auto insurance, you get a BINDER that says you have immediate coverage, even though you don't yet have the contract in hand. Your coverage under the binder lasts until they issue your policy or decline to cover you after they've had a chance to review your application for insurance (binders are also time-limited by state law).
As InsTeacher stated, no money, no insurance. If you want some of theirs, they must have some of yours first. That's the nature of the "game".
Posted: Wed Jul 14, 2010 10:03 pm Post Subject:
Anyone ever think about the fact that the dish is still UNDER WATER and has to come up through the grease?
OH..what a way with words..LOL :roll: Yea..I see your point. It makes ya think.Posted: Sat Jul 17, 2010 07:38 am Post Subject:
binders are also time-limited by state law
That's interesting, how long do these binders stay in effect?
Is it state-specific?
Posted: Sat Jul 17, 2010 05:19 pm Post Subject: insurance
OH!!.............ya'll are just 'throwing out words' that I just don't understand!!..LOL "Binders"....what's that mean?! Not being ignorant..I just don't know.
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