Cheapest No Down Payment Car Insurance In 2023

No down payment car insurance

When looking for a car insurance policy, you may come across several companies that offer coverage with no down payment. This does not imply that new policyholders are given free car insurance; rather, it usually means that no additional down payment is necessary other than the premium payment for the first month of coverage.
Having said that, there are very cheap-cost car insurance coverage solutions available. Comparing auto insurance quotes from different car insurance companies that cater to your driving history and unique insurance needs is a solid strategy to obtain the cheapest car insurance prices. Compare rates from leading companies if you’re looking for very cheap car insurance with no down payment.

What is No-down-payment Car Insurance?

A no-down payment car insurance policy is one that requires only the first month’s premium to begin the term of your policy.

You have two options for paying your car insurance premiums:

  • Significant annual, semi-annual, or quarterly payments
  • A monthly payment schedule

While some companies may offer cheap car insurance with no down payment, don’t be fooled into thinking you can get insurance without paying anything upfront. Insurance companies will not provide free coverage right away.

  • “No down payment” simply means that you will not be needed to pay for more than the first month of coverage in order to purchase insurance and begin your policy.
  • Those who can afford to pay for more of their insurance policy upfront will have a lower overall policy price, with those who pay for the entire coverage in one installment saving the most.

Though a monthly payment plan may be the best option for your financial condition, keep in mind that this is the more expensive option throughout the course of the policy.

For example, we got a quotation from Geico for a six-month insurance policy. Here is the pricing difference our driver would see if he paid for the entire six months at once rather than in monthly installments:

Down payment$125$747
Monthly premium (x5)$129$0
Total cost$772$747
This policy provides coverage for a 30-year-old male driving a 2010 Toyota Camry in Florida.

Our driver of choice was:

  • Liability insurance of $25,000/50,000/25,000
  • PIP coverage of $10,000 with a $1,000 deductible
  • With a $500 deductible, you have comprehensive coverage.
  • Collision insurance with a deductible of $500

Is It Possible to Get Car Insurance with No Payment Down?

Yes, but almost certainly not. There are other aspects to consider, and not every organization provides this choice. To begin with, just a few states provide car insurance with no down payment.

Currently, only the following states provide this option:

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

If you don’t live in one of these states, you’re out of luck. At least for the time being.

Second, you will have to settle for one of the few companies that provide this choice. Furthermore, they may not offer the greatest prices, so you may wind up spending more.

Cheap Car Insurance with No Deposit or Money Down Payment

When looking for cheap-cost car insurance, you may be able to save money by purchasing liability-only coverage. This type of car insurance does not cover damage to your car, but it does cover damage to other vehicles if you are at fault in an accident.

Almost every state requires at least liability insurance on your car. If you owe money on your car, however, the financing company will need you to get full coverage car insurance.

Premiums on Average for Liability-only Coverage

Full coverage insurance is more expensive, but it provides much more coverage. Collision coverage is included in full coverage insurance and covers any damage to your car. It also includes comprehensive coverage, which covers both damages to other vehicles and damage to your vehicle caused by natural causes such as hitting a deer or hail damage.

According to MoneyGeek’s data, Geico is the cheapest company for the majority of drivers. However, your findings may differ because numerous factors influence how much you spend on auto insurance.

Which Companies Provide No-payment Car Insurance?

Many car insurance companies provide flexible payment options, which allow you to pay monthly. Paying your insurance premium in installments can increase your final cost, but it can benefit drivers on a limited budget. You may discover the best rate by shopping around, and drivers with good credit are more likely to be approved for a monthly payment plan option. The companies listed below are known to make monthly payments to people who qualify, but it’s worth checking with other companies to see whether they offer comparable payment options.

#1. State Farm Insurance

  • Combine all of your policies into a single bill.
  • Choose your payment due date.
  • Monthly payments are possible.
  • Discounts for safe drivers
  • It is simple to file claims.
  • A mobile app that is convenient


  • Payments can be made in two, three, four, five, or six payments.
  • Quotes with graphs and charts are available online.
  • Customer service is available 24 hours a day, seven days a week.
  • Military discounts are available.

#3. Progressive

  • Monthly payments are possible.
  • Combine with your home insurance.
  • “Name your price” tools allow you to enter a price, and Progressive will then display your coverage possibilities.

How to Get a Cheap No Money Down Payment Car Insurance

Examine the following to discover cheap coverages for no money down payment car insurance.

#1. Compare quotes

Before making a large purchase that demands a large sum of money, it is best to compare rates in several places. This is exactly how auto insurance works. As a result, you will be aware of the various market prices for that goods. How should this be done? You might conduct an online search or ask colleagues and acquaintances about their experiences with a particular insurance company.

#2. Inform your manager

Not all companies have a tight relationship with car insurance companies. As a result, gain discounts or other perks for their employees, but most have someone on staff who can tell them what to do.

#3. Automatic monthly payment

Agreeing with the firm to deduct the insurance cost automatically is one approach to getting cheaper discounts and rates on your car insurance. Of course, you should always have money on hand at the time of the reduction.

#4. Apply for savings

To entice clients, car insurance companies offer a variety of discounts. Discounts are available to many organizations, including the military, retirees, teachers, and responsible drivers. You can also combine all of your automobiles into single insurance, or combine your home and car into the same policy.

#5. The best coverage to purchase

If you want to save the most money, thoroughly consider all options before settling on one. Collision and comprehensive coverage are more expensive than Liability policy, but they are not necessary if you are involved in a serious at-fault collision. You might buy car insurance online and raise your deductible to receive better coverage for less money.

How do I acquire insurance without putting any money down?

Instead of paying the entire amount all at once, a monthly car insurance plan allows you to make smaller installments each month.

Can I pay for part of my car insurance?

To reduce your immediate expenditures, you make monthly payments instead of paying your car insurance premium over a 6-month period. You may end up paying more in the long run because providers often offer a minor discount for early payment.

Factors that Prevent Drivers from Obtaining No-down Payment Car Insurance

A person’s credit score, age, and driving record are all criteria that influence whether or not they qualify for a no-down payment car insurance policy. Young drivers under the age of 20 will find it very impossible to obtain $0 down car insurance and monthly rates under $150. Teen drivers are the most dangerous drivers on the road, as evidenced by accident statistics. This is why they pay the highest rates and must make large deposits.

Credit is another key consideration that will influence your premium and required down payment. It will be difficult if your credit score is less than 600, for example. In all likelihood, you will end up paying greater policy fees and a down payment of more than $100.

Speeding tickets will also significantly raise your premiums and prevent you from obtaining zero-down car insurance. Contact your broker or agent if you want to know the exact amount. These insurance professionals are well-qualified, have extensive expertise, and work with a variety of car insurance companies.

Your ability to obtain no down payment car insurance will be influenced by the sort of car you drive and your credit score. For example, if you drive a fast new car, car insurers will consider you a high-risk driver.

This will be the same if you are required to file an SR-22 with your state DMV. However, if you have a clean driving record and a credit score above 650, you will have no trouble finding cheap no down payment car insurance.

We recommend that you compare estimates from companies such as Geico and Esurance, as well as many others across the country. Amica, Nationwide, State Farm Insurance Company, and Farmers are among the companies on the list.

Why Do Insurance Companies Require payment?

A down payment is preferred, and in most cases required, by all car insurance companies. This is to cover the initial costs of doing a background check and establishing a new policy.

These two things cost them money, and they prefer to recuperate it upfront rather than over the course of a six-month coverage.

Why You Should Think About Making a Down Payment

Because car insurance with no down payment is difficult to find, there are some important considerations to consider.

#1. Your monthly payments will be reduced if you make a down payment.

The first thing to realize is that your down payment isn’t just money floating around in the wind. The down payment is applied to your future monthly car insurance premiums.

For example, if you put down 30% on a $100 monthly policy, your payment will be reduced to $70. So, if you need that extra cushion monthly, putting a down payment on your car insurance may actually help you budget more successfully.

#2. A lack of a down payment may result in a higher interest rate.

Furthermore, because most car insurance companies prefer not to offer a no-down-payment alternative, you may start with a higher rate. This is because they perceive you as high-risk. A high-risk client entails a higher premium rate.

However, if you are prepared to sign up for their direct deposit using your debit or credit card, you may be able to avoid the needed down payment. This may not be a publicized option, therefore you may need to call an agent to discuss it with them in order to have it implemented.

Another item to consider is your credit score and the type of vehicle you need to insure. You are more likely to be able to receive car insurance with no down payment if you have a higher credit score and a little older car. However, the chances of purchasing a higher-end, brand-new car are substantially lower. This is due to the fact that higher-priced new cars pose a far greater liability to the insurance carrier. This is why they demand a portion of your money upfront to help mitigate the risk.

Can I Get Car Insurance With a Low or No Down Payment?

There is no such thing as “no money down” auto insurance because it does not exist. A “low down payment” is a term that may be used by some insurance companies to describe their auto insurance policies. On the other hand, this typically means that you are only required to pay the premium for the first month. Before they will even consider issuing a policy, a reputable insurer will demand payment upfront.

Does Geico Offer No-Down-Payment Insurance?

In most cases, Geico will insure a driver’s vehicle without requiring a deposit on the policy. Even though the cost of your first month will be spread out over the subsequent payments, there are times when the cost of your first month is actually lower than the cost of the subsequent months. However, it is impossible for an insurance provider to sell you a policy without requiring some form of a down payment.

Can You Get “$0 Down” Car Insurance?

The cost of your auto insurance can typically be spread out over the policy’s duration, and many insurance companies waive the requirement that you make an initial down payment. You might even be able to negotiate a lower rate for the first month with some of them. However, it is not possible to obtain coverage under a car insurance policy that is known as “buy now, pay later.” This type of coverage requires no initial payment when the policy is initiated.

Can I Get Car Insurance Without a Deposit?

No, in order to purchase a policy from an insurance provider, an upfront payment of some kind is necessary. The “deposit” or “down payment” on your insurance policy is typically a certain percentage of the total amount due. There is no additional cost or fee associated with this.

What Happens if You Can’t Afford to Pay Car Insurance?

If you do not pay the premiums for your insurance policy, the policy will expire, and you will no longer be covered by it. This indicates that, depending on the location in which you currently reside, it may be against the law for you to continue driving your car. Depending on the laws in your state, disobeying these regulations could result in hefty fines and even the suspension of your driver’s license.

Who Actually Has the Cheapest Car Insurance?

According to the findings of a study conducted by MoneyGeek, GEICO offers the most affordable rates for auto insurance to the majority of drivers, with an annual premium of $628 for liability-only coverage and $1,047 for comprehensive and collision coverage, respectively.

How Do I Get Insurance With No Money Down?

Instead of making one large payment to cover the total cost of the premium all at once, you can spread it out over the course of the year with a monthly car insurance plan.

Can I Pay Half My Car Insurance?

In order to reduce the amount of money you have to spend right away, you decide to pay your car insurance premium on a monthly basis rather than for the full six months. Because providers typically offer a slight price reduction for payments made in advance, you might end up paying more in the long run.


Finding a car insurance provider that accepts no down payment is like hunting for a needle in a haystack. It’s a challenging responsibility to take on, especially because the information isn’t generally publicized.

If you are looking for car insurance but do not want to pay a down payment, there are a few possibilities for you.

No Down Payment Car Insurance FAQs

Can car insurance be paid with a credit card?

Yes, you may normally pay for your car insurance with a credit card, which may result in additional benefits such as cashback or other credit card privileges. Paying for insurance with a credit card has become widespread due to the prevalence of insurance apps and e-commerce.

Is it cheaper to pay car insurance monthly or yearly?

Monthly payments may appear to be the less expensive option at first glance, but they are usually always the most expensive method to pay for car insurance in the long term! Even if it costs more upfront, you will save money on your premiums if you acquire car insurance for a year or half a year.

How does insurance work on a financed car?

Your lender will need collision and comprehensive coverage, often known as full coverage when you finance a car.


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