Cheap No Down Payment Car Insurance
Some car insurance companies, like Geico and Progressive, may let you pay less your first month of car insurance coverage.
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A few cheap insurance companies will let you make a smaller payment for your first month's bill and make up the rest later. But depending on where you live and your driving history, your first payment could be higher.
The best way to get car insurance now and pay for it later is to put your bill on a credit card. This can buy you some time because you won't get the credit card bill for about a month.
But all reputable car insurance companies need you to pay some amount of money to start your car insurance coverage. There's no way to get car insurance for free.
What is no down payment car insurance?
No-down-payment car insurance is an auto insurance policy that only requires you to pay the first month's bill — or sometimes even less — to start your policy.
Depending on how your insurance company works, you may be able to pay for your car insurance with annual, semiannual, quarterly or monthly payments.
While some 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 up front. "No down payment" means you won't be required to pay for more than the first month of coverage to start your policy.
Generally, the smallest amount you'll be able to pay is the cost of one month of coverage. Sometimes, Geico and Progressive will let you start your policy for less. But they won't offer this to all drivers, and the only way to find out if you're eligible is to get a quote.
Find Cheap Auto Insurance Quotes in Your Area
How can I buy car insurance with no money down?
You can't get car insurance with no money down, but most auto insurance companies offer multiple options for payment plans. If an insurer doesn'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 deposit or a low deposit. 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.
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 policy cost up front.
And owners of newer, more expensive cars may have a harder time finding low-down-payment insurance since their vehicles present an increased risk to their insurer.
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 smaller initial payment.
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 out which company is best for you.
Factors that will affect your rates 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
National companies |
Monthly rate
| |
|---|---|---|
| State Farm | $41 |
| Geico | $52 |
| American Family | $53 |
| Progressive | $63 |
| Travelers | $63 |
Only current and former military members and their families are eligible for a USAA policy.
Should I get no-down-payment car insurance?
Those who can afford to pay for more of their insurance policy up front will enjoy a lower total policy price, with the highest savings going to those who pay for the entire policy in one installment.
Your savings will depend on your credit and driving history, ZIP code, car, policy length and chosen payment installment plan. Usually drivers can save 5% to 10% on a one-year policy if they pay up front.
Cost of car insurance: Paid in full vs. monthly payments
Monthly payment | Paid in full | |
|---|---|---|
| Month 1 | $19 | $242 |
| Next 5 months | $50 | $0 |
| 6-month total | $269 | $242 |
| Savings | — | $27, or 10% |
Quotes are from Progressive for a liability-only policy in Chicago.
For example, ValuePenguin's analysis found that drivers with a Progressive car insurance policy will save $54 every year by paying up front 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 members 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 $58 per month nationwide.
- 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 you 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 upfront 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 "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.
Except where noted, all quotes are national averages for minimum coverage, corresponding to each state's legal minimum. Our sample driver is a 30-year-old with good credit.