Cheap No Down Payment Car Insurance

Cheap No Down Payment Car Insurance

Car insurance companies typically require a deposit or first month's payment for a new policy, but some companies let you pay less for your first month's deposit.

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Reputable car insurance companies will never offer free coverage instantly. You will always be required to pay something for your deposit or first month's payment, though you could pay less your first month.

When you purchase car insurance, you usually have the option to either pay in monthly premiums or lump-sum installments. You can buy car insurance with a lower first month payment, but you'll usually pay more the following months. Some companies let you pay the same price or less for your first month, while others might charge you a higher deposit for your first month, especially if you're a riskier driver.

What is no down payment car insurance?

No down payment car insurance is an auto insurance policy that requires only the first month's premium to start your policy, or sometimes even less.

You can pay your car insurance premiums with annual, semi-annual, quarterly or monthly payments.

While companies may advertise cheap car insurance with no down payment or buy now pay later car insurance, you can't get insurance without paying any money upfront. "No down payment" means you won't be required to pay for more than the first month of coverage to start your policy.

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How can I buy car insurance with no money down?

Most auto insurance companies offer multiple options for payment plans. If they don't advertise the installment plan you're looking for, you could call the company to talk to an agent.

However, not all drivers will be able to get car insurance with no or low deposit required. Insurance companies take on the risk of insuring you and your vehicle as soon as your policy begins. Because of this, they want to cover at least some of that risk with your initial payment.

Owners of newer, more expensive cars may have a harder time finding low down payment insurance, since their vehicles present increased risk to their insurer.

Additionally, drivers with a poor credit history, or those who are required to file an SR-22, will be required to pay more of their total premium up front.

On the other hand, if your car is older and less expensive to insure, your insurance company might offer you a car insurance policy with a zero down payment.

States where you can get no down payment car insurance

No down payment car insurance is not available in every state. States that do let you buy auto insurance coverage with little to no deposit down include California, Florida and New York.

States with buy now pay later car insurance

  • Arizona
  • California
  • Florida
  • Georgia
  • New York
  • Oklahoma
  • Washington

Where can I find cheap car insurance with a low deposit?

Regardless of whether no down payment auto insurance is available in your state, you'll find the cheapest car insurance rates by getting quotes from several car insurance companies.Getting a free online insurance quote is a quick and easy way to compare rates from multiple companies and find which company is best for you.

Factors that will affect your premiums include your:

  • Coverage limits
  • Deductibles
  • Optional coverage
  • Driving record
  • Location
  • Age

Affordable auto insurance companies with low down payments

The best way to find a car insurance policy with the lowest down payment is to start by getting quotes from the cheapest companies.

Monthly cost of minimum coverage car insurance

Company
Monthly rate
USAA logo
USAA$36
Farm Bureau logo
Farm Bureau$36
Erie logo
Erie$38
Auto-Owners logo
Auto-Owners Insurance$54
State Farm logo
State Farm$59
Show All Rows

Should I get no down payment car insurance?

Those who can afford to pay for more of their insurance policy upfront will enjoy a lower total policy price, with the highest savings going to those who pay for the entire policy in one installment.

The savings you would see would depend on your credit and driving history, ZIP code, car, length of your policy and the payment installment plan you choose. Usually drivers can save 5% to 10% on a one-year policy if they pay the premiums upfront.

Cost of car insurance: Paid in full vs. monthly payments

Monthly payment
Paid in full
Month 1$125$747
Next 5 months$129$0
6-month total$772$747
Savings$0$25

For example, drivers with a Geico car insurance policy would save $25 every year by paying upfront for a full six-month policy at once instead of making monthly payments.


What should I do if I can't afford car insurance right now?

If you need to drive but can't afford car insurance, you can share a policy with other people who drive your car, get a nonowner policy or consider a liability-only policy.

  • Check your policy's grace period. If you can't pay your car insurance bill right now but will have the money soon, ask your company about a payment grace period. You could have a few days or weeks to come up with the money to keep your coverage.
  • Share a car insurance policy. If you share a car with roommates or family who live in the same home, you might be able to share a policy with them and split the cost. Or you could be added as a named driver to their policy.
  • Try a nonowner policy. If you regularly drive someone else's car, a nonowner insurance policy could help you get affordable coverage that's up to 15% cheaper than a standard policy.
  • Drop to liability only. Liability-only car insurance is the cheapest coverage you can get, with an average cost of $55 per month in some states.
  • Check for low-income savings. Some states offer discounted car insurance policies for drivers with low incomes, including California and New Jersey.

Avoid a lapse in coverage if at all possible, or you'll face higher costs in the future. If you do have a lapse in coverage for 30 days or more, that could cause your rates to skyrocket when you restart coverage. And if you're caught driving uninsured or cause an accident, you could face even more expensive penalties and fines, depending on your state.

Frequently asked questions

Does Geico offer no-down-payment insurance?

Geico generally offers most drivers car insurance without a deposit. Sometimes your first month's cost is even cheaper than the next few months, though the cost of your first month will be spread out to your next payments. But no company will ever let you get car insurance without some type of up-front payment.

Can you get $0 down car insurance?

Many insurers let you pay for car insurance evenly over the period of coverage without an extra deposit for the first month. Some may even allow you to pay less for the first month. But it's impossible to get car insurance coverage without paying anything when you start your policy, also known as no deposit or buy now pay later car insurance.

Methodology

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

For Geico quotes, this policy covers a 30-year-old man driving a 2010 Toyota Camry in Florida with full coverage:

  • $25,000/$50,000/$25,000 liability insurance
  • $10,000 of PIP coverage with a $1,000 deductible
  • Comprehensive coverage with a $500 deductible
  • Collision coverage with a $500 deductible

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