How Do I Get No Down Payment Car Insurance?
- Expertise: Auto insurance, home insurance and renters insurance
- Education: Sonoma State University (BA in English)
Aaron Besson has worked at LendingTree for more than seven years and has been a staff writer for the last five years. He specializes in producing research-backed content about auto, home and renters insurance. Aaron enjoys the deep dig into insurance data to get the right answers to hard questions. His work has been cited by CBS, iHeart Radio, the Sacramento Bee and Yahoo.
Finding instant car insurance with no down payment would be a dream come true — but it doesn’t exist.
What you can do is reduce the cost of your down payment. Comparing car insurance quotes, exploring discounts and avoiding coverage you don’t need goes a long way toward getting a low down payment.
Getting car insurance with no down payment
Some car insurance companies offer “no down payment” car insurance. But this doesn’t mean you’ll have coverage now and pay for it later. It just means you don’t have to pay the full premium for the year right away.
Auto insurers may also use “no down payment” when referring to a monthly payment plan where you pay as you go.
If budget is a top priority for you when buying a car insurance policy, choosing a monthly option lets you pay as you go. While this gets you covered immediately, it doesn’t give you the discount that car insurance providers usually offer for paying for a full year.
Car insurance companies with the cheapest down payment
State Farm has one of the cheapest down payment for both liability-only and full-coverage car insurance. Its average rate for minimum car insurance is $50 a month, and its average rate for a full-coverage policy is $124. The national average rate for liability-only car insurance is $64 a month, and the national full-coverage average is $165.
| Company | Annual rate |
|---|---|
| Erie Insurance | $1,270 |
| State Farm | $1,487 |
| Travelers | $1,919 |
| American Family | $1,920 |
| Geico | $1,937 |
| Progressive | $2,032 |
| Nationwide | $2,226 |
| Amica | $2,548 |
| Allstate | $2,609 |
| Farmers | $3,091 |
| USAA* | $1,199 |
Erie Insurance and USAA have cheaper rates than State Farm. However, Erie Insurance is only available in 12 states and the D.C. area, while USAA is only available to military personnel, veterans and their families.
These are just average rates — your final quote may differ. When car insurance companies calculate a quote for you, they look at many factors. These include:
- The make and model of your car
- The ZIP code where the car is garaged
- Your insurance claim history
- Your driving history
A key reason car insurance rates differ from company to company is that insurers put different risk values on each factor. For example, one provider may consider the kind of car you drive to be more of a risk than another. This is why you should compare car insurance quotes from several companies to get the cheapest down payment.
How to get the cheapest down payment for car insurance
You can get affordable car insurance quotes when looking for the cheapest down payment by getting the right coverage amount and taking advantage of discounts.
Get the right coverage amounts
Avoiding paying for coverage you don’t need is a good way to keep car insurance costs down.
If you drive less than you used to or have your car in storage, you could qualify for a lower rate. And if you have an older car, you may not need full coverage.
Take advantage of discounts
Car insurance companies usually offer a variety of discounts. When getting a quote, make sure to look for or ask about discounts that could lower your premium. Many insurers offer a bundling discount: If you bundle your car insurance with a home, renters or life insurance policy from the same company, you can save money on both policies.
Methodology
Unless stated otherwise, we used thousands of car insurance quotes from across the U.S. for a 30-year-old man with good credit and no tickets, accidents or DUIs driving a 2015 Honda Civic EX.
The following coverage limits were used:
- Bodily injury liability: 50,000 per person, $100,000 per accident
- Property damage liability: $25,000
- Uninsured motorist: $50,000 per person, $100,000 per accident, where required by law
- Personal injury protection: minimum limits, where required by law
- Collision: $500 deductible
- Comprehensive $500 deductible
Frequently asked questions
Car insurance providers require a down payment to activate your coverage. One reason they do this is that it reduces the number of high-risk drivers they need to cover. If a driver can’t afford a down payment, they usually run a higher risk of canceling a policy.
The down payment to activate your car insurance may include a small fee to activate your coverage. Even so, you might be able to spread out paying the fee over time. Ask your provider about what options you have.