How Do I Get No Down Payment Car Insurance?
Finding instant car insurance with no down payment would be a dream come true — but it doesn’t exist. Some auto insurers may use terms like “no down payment” when referring to a monthly payment plan where you pay as you go, but you’re not going to find any worthwhile insurer that lets you buy car insurance now and pay later.
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.
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 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 $125. The national average rate for liability-only car insurance is $64 a month, and the national full-coverage average is $165.
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
Here are some tips for finding the most affordable car insurance quotes when looking for the cheapest down payment.
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.