How to Get

Affordable No Down Payment
Auto Insurance

A Concise Overview:

  • Car insurance with no money down is not available in every state or with every company
  • Do the math – it might not be a better deal if you’re charged more for your insurance
  • Many factors are used to determine your auto insurance rates

Affordable no down payment auto insurance is hard to come by since it’s not available in every state and not every company will offer it. Cheap no-deposit car insurance to pay upfront is not always the deal it seems to be. You might see “first-month free car insurance” advertised, but be cautious.

Looking for very cheap car insurance with no deposit upfront doesn’t mean you have to skimp on coverage. You can still get auto insurance coverages. The only thing that changes is how you pay.
Regardless of if you want to pay in advance or monthly, the best way to get cheap car insurance quotes with no deposit is to shop around.

Looking for no down payment auto insurance quotes? Enter your ZIP to compare online quotes and find auto insurance companies that don’t require a down payment.

Can I Get Auto Insurance With No Down Payment?

Can I get car insurance with no deposit? How do I get car insurance with no money down?

If you’re in the market for new car insurance, you have a few options available to you. You can cough up a sizable chunk of change and pay the full rate in total, often yielding auto insurance discounts for paying upfront. Or, you can go with option number two — a popular choice for many drivers on a budget — and pay monthly car insurance rates.

Opting to pay a monthly car insurance rate can still cost you in the form of an initial down payment as a sign of good faith. While there is auto insurance that accepts checks for the down payment out there, the check still has to clear.

How much is this first down payment? And what if you can’t afford it?

Can you get cheap monthly car insurance with no deposit? You need money to pay car insurance bills, but sometimes that’s the last thing you want to spend money on. That’s when buy now pay later car insurance is tempting.

A typical car insurance down payment for a monthly rate could equal to two months of coverage. Auto insurance down payments may depend on individual policies and states, but they are often estimated at anywhere from 20-33 percent of a six-month total.

Here’s where you come to a rock and a hard place: If you’ve chosen to pay a low monthly car insurance rate because you can’t afford to pay a six-month rate upfront, you’ll likely have a hard time coming up with a 30 percent down payment.

This leads us to door number three. There is a possibility of securing zero down payment auto insurance — cutting out an upfront cash commitment altogether — though this auto insurance deal is not available in all states or from all providers.

What will you get when you find a company that offers no down payment auto insurance?

Your first monthly payment may be used as the policy down payment, providing the illusion that you are getting zero down payment car insurance. A car insurance provider that waives your down payment in this manner minimizes your out-of-pocket costs.

Some companies will also offer discounted deposits, like $20 down payment car insurance from companies like Geico. Or offer discounted rates such as auto insurance for $30 a month.

What’s the catch with no deposit auto insurance? Who can buy auto insurance with no money down?

Is no deposit car insurance right for you?

As described above, an auto insurance provider may offer the cheapest car insurance with no down payment insurance by waiving the down payment and applying it as your first month’s payment. This is ideal. However, since $0 down auto insurance is in high demand for those strapped for cash, an insurance company may use this golden opportunity to increase your monthly premium in lieu of a down payment.

To provide a better example, an insurer may quote you $400 for a yearly car insurance rate, paid in full. Or, they may offer you the alternative of no down payment auto insurance rates of $45 per month. Thinking back to math class — which is the better deal? Paying month-to-month with no down payment will ultimately cost you $540 per year, $140 more than the annual rate paid in advance.

Yet for those who don’t have $400 to spare, paying more for no down payment insurance over the course of a year may still be the better choice. With no down payment car insurance, you will completely bypass the cash obligation. But keep in mind, you may still have to pay a minimal administrative processing fee to open the policy. You will also be responsible for all monthly payments. If you only need coverage for a short period of time, you can see if temporary car insurance is right for you.

The one thing that you don’t want to do is not have car insurance. The Insurance Information Institute reports that in 2015 13 percent of drivers were uninsured. Most states require that you carry at least minimum coverage and can issue fines or suspend your driver’s license if you don’t.

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Where Can I Get Auto Insurance Without a Down Payment?

Since no down payment car insurance is not the industry standard, you may not be able to find this type of insurance just anywhere.

Cheap monthly auto insurance with no deposit may be available in these states:

  • Washington
  • California
  • Arizona
  • Oklahoma
  • New York
  • Georgia
  • Florida
  • California is the leading state to offer no down payment car insurance with the largest number of providers.

Are there auto insurance companies that don’t require a deposit?

A no down payment auto insurance company will usually advertise. You can also purchase no money down auto insurance online, directly through insurance providers or a third-party website. You can’t buy no down payment auto insurance from everyone, so it takes some searching.

Why do insurance companies ask for down payments?

Insurance companies charge down payments to protect themselves. It prevents people from taking out a policy just to show proof of insurance when needed, and then failing to pay anything to the insurance company.

How Much Does No Down Payment Auto Insurance Cost?

Who has the cheapest auto insurance?

As you probably know by now after shopping and comparing car insurance online, your individual insurance rate will depend on a number of variables.

What Impacts Your Auto Insurance Rate?


Insurance Company & Policy Options


Age, Marital Status, and Gender


Driving Record & Claim History

Impacts Your Car
Insurance Rate?








Car Make/Model

What are the no down payment auto insurance companies?

The no down payment car insurance companies are:

  • USAA
  • Farm Bureau Insurance
  • Erie
  • Auto-Owners Insurance
  • State Farm
  • American Family
  • Progressive
  • Metropolitan
  • Nationwide
  • Allstate
  • Travelers
  • Farmers

Since your driving record has the most impact on your auto insurance rates, let’s look at how your rates can change with an accident, speeding ticket, or DUI.

Average Annual Auto Insurance Rates by Driving History
CompaniesAverage Annual Rates with a Clean RecordAverage Annual Rates with One AccidentAverage Annual Rates with One DUIAverage Annual Rates with One Speeding Violation
American Family$2,693.61$3,722.75$4,330.24$3,025.74
State Farm$2,821.18$3,396.01$3,636.80$3,186.01
Liberty Mutual$4,774.30$6,204.78$7,613.48$5,701.26
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A clean driving record will keep your rates to around $260 a month, but one accident will jump your rates to about $340 a month.

According to Experian, the average credit score in the US is 703, which is considered good. If your score is lower than average, there are ways to improve it like paying your bills on time.
Some factors, like credit scores, can easily be improved. Do what you can to improve your score to get the lowest car insurance.

Did You Know?

  • You can challenge your driving record?
  • Older drivers aren‘t penalized for age?
  • The car you choose makes a big difference?

Just like any other car insurance policy, your no down payment quote will be comprised of several insurance components that can impact price, including but not limited to liability coverage, collision coverage, and uninsured/underinsured motorist coverage.

Liability car insurance is the coverage required in all 50 states and is mandatory. Other coverage options, including add-ons like collision coverage, will offer extra protection and can increase your base rate further.
The best way to approach getting a good deal on no down payment car insurance is just as you would any other policy. We’ll cover how to keep your no down payment insurance affordable in the next section.

How does auto insurance down payment affect monthly rates?

Now, imagine the cost of car insurance monthly payments if you deposit at the beginning of the policy. Auto insurance with a low down payment will make your monthly payments more expensive. Car insurance companies that don’t require a deposit may not have low payment car insurance options.
Let’s look at an example of how a no down payment car insurance affects monthly rates and how deposits lower them.

No Down Payment Auto Insurance Compared to Depositing Auto Insurance
Down Payment Amount on Auto InsuranceMonthly Rates After Deposit
10% or $300$225/month
20% or $600$200/month
30% or $900$175/month
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These monthly rates are based on annual auto insurance rates worth $3,000. Ten percent of $3,000 is $300. The car insurance company will deduct $300 from the policy total. If you have a 12-month policy, your auto insurance provider will divide your annual rate by 12 to get the monthly rate, which would be $2,700 for the year.
Some companies only offer policies for a 6-month period. In that case, your annual rate will be divided into two. For the sake of the example, a six-month car insurance policy would be $1,500. However, the deposit rules are the same. The more you deposit, the cheaper your monthly auto insurance premiums.

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Seven Quick Tips for No Down Payment Auto Insurance

If there’s one thing to know about signing up for no down payment insurance, it’s that comparison-shopping can be your best friend. There’s no way to tell which auto insurance provider will offer cheap no-deposit insurance policies until you request a quote.

Don’t even think about signing up for a policy until you have gotten a minimum of three quotes from competitive no-deposit insurance companies to determine the lowest available rate without a down payment.

As you shop, you can put these helpful tips into practice to

Find the cheapest no down payment insurance

  • Drive safe – Obvious, but true — working to improve or preserve your driving record can keep monthly car insurance dirt cheap.

  • Drive less – Have you ever considered carpooling, using public transportation, or even working from home? Now is the time to put these grand ideas into action, considering that fewer monthly miles on your vehicle mean a cheaper monthly insurance rate.

  • Play with your deductible – This may prove to be a problem if you don’t have enough extra cash to pay for an insurance down payment, let alone deductibles. However, increasing your deductible (the amount you will pay in the event of an at-fault accident) can inversely lower your policy rate.

  • Ask for discounts – When it comes to affordable car insurance, you never know until you ask. Extra policy discounts may be available for military, students, driver’s education, nurses, multi-car households, firefighters, and more.

  • Talk to your boss – Your company may offer bulk discounts when an auto insurance policy is purchased through a company-sanctioned provider.

  • Ask for automated payments – It’s possible that your no down payment insurance could cost more than an annual rate paid in full. Ask your new provider to set you up with automatic monthly billing to automatically bring your monthly rate down even more.

  • Take advantage of the extras – If you can’t do anything to get your no down payment insurance quote to drop, at the very least, look for a reputable insurance company that offers some freebies. For example, many companies provide an in-car device to track driving and potentially lower rates; some insurers build “extras” into their standard car insurance policies, including coverage for transportation expenses after an accident, locksmith services, and pet injuries.

If you want very cheap car insurance with no deposit, enter your ZIP code below and you can compare companies that might offer insurance without a deposit required.

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