Cheap No Down Payment Car Insurance

Cheap No Down Payment Car Insurance

Insurers often require a deposit or first month payment, but some insurers such as Farm Bureau and Erie have policies that cost less than $40 per month.

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Reputable car insurance companies will never offer free coverage instantly. You will always be required to pay something before your car insurance policy goes into effect.

When you purchase car insurance, you usually have the option to either pay in monthly premiums or lump-sum installments. Those who can pay down a large lump sum at the start of the policy will save money on their policy.

Those who buy car insurance with no money down will establish coverage for a lower price, but will pay more over the life of the policy.

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 in order to initiate your policy's term.

You can pay your car insurance premiums in one of two ways:

  • Large annual, semi-annual or quarterly payments
  • A monthly payment plan

While companies may advertise cheap car insurance with no down payment, you shouldn't be misled into believing you can obtain insurance without paying any money upfront. Insurers will not offer free coverage instantly.

  • "No down payment" simply implies that you won't be required to pay for more than the first month of coverage to obtain insurance coverage and start your policy.
  • 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.

Though a monthly payment plan may work best for your financial situation, it's important to remember that this is the more expensive option over the length of the policy.

For example, we obtained a Geico quote for six-month insurance policy. Here is the price difference our driver would see if he chose to pay for the full six months at once instead of making monthly payments:

Down payment$125$747
Monthly premium (x5)$129$0
Total cost$772$747

This policy covers a 30-year-old male driving a 2010 Toyota Camry in Florida.

Our driver elected:

  • $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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The savings you would see would depend on your credit and driving history, your ZIP code, the car you're insuring, the length of your policy, and the installment plan you choose. However, it is not unusual for drivers to save 5%–10% on a one-year policy if they pay the premiums upfront.

Who can buy car insurance with no money down?

Most auto insurance companies provide multiple options for payment plans. If they don't advertise the installment plan you're looking for, ask your agent if such an option exists.

However, not all drivers will be able to obtain 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 recuperate 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 provider might offer a zero down payment option.

States where you can get no down payment car insurance

No down payment car insurance is not available in every state. States that do allow you to buy auto insurance coverage with little to no deposit down include:

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

Where can I find cheap car insurance?

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.

Factors that will affect your premiums include your:

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

Affordable auto insurance companies

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

Quotes were for a single 30-year-old male driving a 2015 Honda Civic EX with minimum liability coverage.

Frequently asked questions

Does Geico offer no-down-payment insurance?

Geico generally offers car insurance without a large initial deposit — sometimes your first month's cost is even cheaper than the next few months. 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 allow you to pay for car insurance evenly over the period of coverage without an initial deposit. 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.


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.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.