Every driver needs insurance coverage because, in nearly every state, it’s the law. However, not every motorist has a credit card to purchase an auto insurance policy. The good news is almost every major insurer accepts checks. So how do you start auto insurance coverage with cash or a checking account?
This includes standard paper checks, online checks, and cashier’s checks. Starting your auto insurance coverage by paying with a check will take a few days longer, in most cases, while the payment processes. If you pay with an online check, things will go a bit faster since you don’t need to mail it in.
Let’s review some strategies to get covered with a low-down payment using cash or your checking account. Like many industries, auto insurance is going online fast these days.
More and more people are turning to the internet for quotes and even buying coverage on their smartphones. While this has made shopping for auto insurance faster and easier, not everyone quickly gets insured. People don’t want to drive to an agency and sit around waiting to get a quote from an agent that might not have the lowest rate.
Buying Car Insurance Without Using a Credit Card
Some people don’t have a credit card or a checking account but still need to buy a policy. There are many people in this situation, and thankfully there are insurers that meet this group of consumers. Those people without credit cards want to buy a policy online like everyone else. The truth is that people who don’t have a charge card will be restricted in their buying choices. Many large insurers like Progressive or Esurance are set up to take credit card payments and automatically charge for installment payments each month after that.
Taking cash is a cumbersome task that most companies are not set up to handle. In today’s society, people and businesses do most financial transactions by credit or debit card. Many consumers don’t have bank accounts or credit cards. For this group of motorists getting cheap auto insurance with a low down payment can be difficult.
However, there are some payment options that you can use.
- Money Order
- Prepaid Money Card
- Mail a Cash Payment (if accepted)
- Use a Cash Payment App (if accepted)
Money Orders are a Great Way to Start Paying for Car Insurance
Money orders are a safe and secure type of payment you can use to pay your insurer. The majority of insurance providers, like Liberty Mutual, Travelers, and Progressive, among others, accept payments via money orders. This might be your best option if you don’t have a bank account.
You might get a money order from your regional convenience store, like 7-11. Also, the post office offers them, along with many grocers, banks, and even Walmart offers, money orders. You’ll likely need to pay a small fee for the cash order, depending upon the company supplying the money order and the dollar amount of the money order.
Wal-Mart is the cheapest and probably the most convenient of these options since most people shop there regularly. Walmart charges about $.88, while the U.S. Postal Service charges between $1.25 and $1.75 per money order. Western Union charges the most, $1.25 and $1.50.
You can send out a money order both online or in person. If you make a payment at a local insurance agency, you’ll likely have to physically go to a Walmart, grocery store, corner store, or post office to get the money order.
Purchase a Pre-paid Card
Most pharmacies and retailers like Best Buy carry a wide choice of gift cards you can buy with cash. While a gift card from Macy’s undoubtedly won’t assist you in getting your vehicle covered, you can get pre-paid Visas or MasterCard by simply putting cash on them. Once your Pre-paid debit card is activated, you can make the down payment on your auto insurance policy.
You can get a pre-paid Visa or Mastercard from most stores that sell gift cards, like your local pharmacy. The process is pretty easy, and you’re not required to get a credit check or a bank account to get a prepaid card. Just add cash to the card, and you are set. You can typically re-load the pre-paid card at numerous places.
Compare free auto insurance quotes online now. Try to pay for the whole policy if you can afford it because almost all insurers won’t let you use a prepaid card to make automatic payments using your pre-paid debit card. If you can’t pay the entire policy amount, make future payments with a money order or other approved methods. To get started, enter your zip code.
Mail-in Money Payments
If none of the above choices suit your preference, you might consider mailing cash to your insurance company. This way isn’t ideal for paying your bill, and most insurers advise against consumers from mailing in cash payments due to the risky nature of this type of deal. First, contact your insurer before sending them cash and make sure they will accept that payment form. Many providers won’t get it.
There are Currently Only 3 Major Insurers Accepting Cash Payments
- Nationwide Insurance
- MetLife
- Personal Lines Group
- Mercury General
Versatility appears to be expanding in the automobile insurance world. Surprisingly, MetLife and Mercury are two of 3 insurance providers that accept PayPal payments also. The 3rd PayPal-friendly insurance provider is Progressive Insurance coverage.
Does this mean that only the three businesses noted above can accept money payments? It never hurts to ask. Rules occasionally alter, and another insurer, small and big, might change their policies. When paying in cash, be sure to obtain a receipt. Make the payment before the due date, and after that, call the insurance provider’s primary customer service number to ensure the payment was processed.
Now that you know how to start your auto insurance coverage with a check or cash, it’s time to compare quotes. Enter your zip code now and compare up to 10 quotes in about five minutes. Get the coverage you need today at the best possible rates.