How to Get Cheap Auto Insurance With No Down Payment (2024)
We explain exactly what insurance companies mean when they promote no down payment auto insurance. Then we share tips on how to get cheap auto insurance with no down payment — from comparing quotes to pursuing discounts — to help you reduce that $132/month average for full coverage auto insurance.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Oct 3, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 3, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- A down payment for insurance refers to extra charges beyond your first monthly payment
- All reputable insurance companies require that you make your first payment before they activate your policy, but most drivers won’t have to make an additional down payment
- When you need cheap insurance, one of the best things to do is compare quotes from multiple companies
When you sign up for an insurance policy, one of the last steps is to make your first payment. With no-down-payment auto insurance, you don’t have to pay additional fees beyond the monthly cost of your auto insurance policy.
However, not all drivers are eligible to skip a down payment. People who need high-risk auto insurance, drivers with low credit scores, or owners of expensive cars might have to make an initial deposit.
Finding no down payment car insurance isn’t usually difficult, but finding how to get cheap auto insurance with no down payment takes a little more work. If you’ve been searching “car insurance no payment,” or “Geico no down payment,” read on to learn more about down payments for car insurance, then compare quotes to find the most affordable rates.
Buying Cheap Auto insurance with No Down Payment
While finding a car insurance company that doesn’t require a down payment is easy, finding cheap auto insurance rates might be more of a challenge. The amount you pay for car insurance depends on a variety of factors.
Car insurance companies look at the following factors when determining your rates:
- Age
- Location
- Driving history
- Make and model of your car
- Previous insurance
- Marital status
- Gender
- Credit score
- Driving record
These factors determine your insurance rates, but companies use unique formulas when crafting a rate for you. Because of these different approaches, knowing how to get multiple auto insurance quotes is integral in the search for cheap car insurance.
Learn more: Factors That Affect Auto Insurance Rates
Most major insurance companies do not require additional down payments beyond your first month’s bill. While your rates will vary, you can get an idea of the minimum auto insurance requirements by state.
If you’re looking for cheap full coverage auto insurance with no down payment, companies like Nationwide and Travelers might be your best bet.
The chart below shows a comparison of the average U.S. full vs. minimum coverage monthly auto insurance rates.
Geico, State Farm, and Progressive offer low rates for minimum and full coverage insurance.
Read more: Should I buy more than the minimum auto insurance?
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What is no down payment auto insurance?
No down payment car insurance refers to buying a new policy without having to put more money down than your first payment.
You have two options for making your first payment on car insurance — you can either split your policy into monthly payments or pay for it all at once. Regardless of how you decide to pay, you won’t find a reputable company that doesn’t require a payment to activate your insurance.
You might see advertisements for cheap insurance with no down payment, but that only refers to additional deposits beyond your first payment.
Instead, most insurance companies consider their policies down-payment-free because they don’t ask for anything besides your first minimum monthly payment.
Who can buy zero-down auto insurance?
Once you make your first payment, your car insurance immediately becomes active. Since insurance companies are on the line to pay claims, high-risk drivers might have to put a deposit down.
The most common drivers who need to make a deposit on their insurance include:
- Sports or luxury car owners
- Drivers with an SR-22 auto insurance requirement
- People with poor credit
- Applicants with multiple infractions on their driving records
- Drivers charged with a DUI
Most high-risk insurance policies request a down payment due to the inherent riskiness of the drivers.
When it comes to auto insurance, the lower your risk, the higher your reward: If your driving record is clean, you have an older or less expensive car, and your credit history is in decent shape, you’ll probably get to skip the down payment.Zach Fagiano Licensed Insurance Broker
Which states require insurance with no down payment?
While most states in the U.S. allow insurance companies to request a down payment, a few have banned the practice.
These states include:
- Arizona
- California
- Florida
- Georgia
- New York
- Oklahoma
- Washington
If you live in one of these states, insurance companies can’t ask you for additional payment outside your first month’s bill. However, they can raise your rates if they consider you a risky driver.
How do you get affordable auto insurance?
With the price of practically everything rising, saving money on car insurance is more important than ever.
If you’re ready to cut your insurance costs, try the following tips:
- Look for discounts. Insurance companies usually offer discounts to help drivers save money. Ask a representative to check for auto insurance discounts you’re eligible for.
- Choose when to file claims. Filing claims will increase your rates, so you should always check that the rate increase is worth the claim. See our article, Is it worth claiming a scratch on your auto insurance?
- Lower your coverage. While it won’t work for all drivers, you might be able to lower your coverage levels if your car is paid off and less valuable. Check out When should I drop my full coverage auto insurance?
- Increase your deductible. Your auto insurance deductible is the amount you pay before your insurance kicks in. Raising it will lower your rates, but it comes with the risk that you’ll have to pay more out of pocket.
- Compare quotes. As you saw above, you can find vastly different rates between companies. Picking the first company you get a quote from can cost you thousands.
Keeping your driving record clean and your credit score up are also ways to keep your insurance as low as possible.
If you have marks on your driving record, like a DUI or multiple car accidents, you might have to get high-risk insurance. High-risk insurance always costs more than a standard policy, but you won’t be stuck with those prices forever.
Most traffic incidents fall off your record between three and seven years if you keep your record clean. Get details in our article, How long does an accident stay on your record?
Which companies have the most affordable auto insurance?
You probably won’t find an insurance company that charges nothing when you buy a policy. Most major companies ask for your first month. To find the most affordable policy, you should compare rates with companies known for their low rates.
Check out the average price of car insurance with some of the biggest insurance companies by state below, but keep in mind that your personal rates might be different.
Full Coverage Auto Insurance Monthly Rates by State
| State | Allstate | American Family | Farmers | Geico | Liberty Mutual | Nationwide | Progressive | State Farm | Travelers | USAA | U.S. Average |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Alabama | $108 | $105 | $133 | $89 | $162 | $96 | $112 | $108 | $79 | $56 | $105 |
| Alaska | $135 | $105 | $127 | $76 | $164 | $108 | $97 | $65 | $93 | $60 | $103 |
| Arizona | $180 | $114 | $135 | $65 | $178 | $116 | $84 | $81 | $104 | $63 | $112 |
| Arkansas | $162 | $137 | $165 | $91 | $99 | $128 | $131 | $80 | $111 | $55 | $116 |
| California | $199 | $138 | $167 | $101 | $216 | $142 | $132 | $108 | $122 | $74 | $140 |
| Colorado | $166 | $118 | $163 | $94 | $92 | $107 | $120 | $94 | $114 | $78 | $115 |
| Connecticut | $196 | $125 | $151 | $62 | $201 | $112 | $133 | $91 | $83 | $77 | $123 |
| Delaware | $207 | $130 | $157 | $101 | $494 | $144 | $90 | $116 | $82 | $43 | $156 |
| District of Columbia | $241 | $115 | $139 | $69 | $180 | $172 | $115 | $111 | $102 | $48 | $129 |
| Florida | $183 | $188 | $227 | $89 | $161 | $103 | $153 | $99 | $166 | $47 | $142 |
| Georgia | $165 | $124 | $149 | $61 | $263 | $152 | $115 | $107 | $110 | $71 | $132 |
| Hawaii | $118 | $82 | $99 | $59 | $128 | $84 | $78 | $64 | $72 | $44 | $83 |
| Idaho | $128 | $93 | $92 | $57 | $79 | $82 | $91 | $53 | $57 | $40 | $77 |
| Illinois | $176 | $114 | $117 | $47 | $76 | $93 | $89 | $64 | $87 | $62 | $92 |
| Indiana | $140 | $107 | $79 | $63 | $183 | $97 | $69 | $71 | $69 | $43 | $92 |
| Iowa | $126 | $95 | $82 | $81 | $116 | $73 | $75 | $65 | $92 | $55 | $86 |
| Kansas | $160 | $114 | $144 | $75 | $174 | $92 | $127 | $81 | $87 | $56 | $111 |
| Kentucky | $236 | $164 | $197 | $80 | $168 | $184 | $111 | $98 | $139 | $72 | $145 |
| Louisiana | $206 | $176 | $212 | $141 | $274 | $181 | $161 | $124 | $156 | $98 | $173 |
| Maine | $108 | $84 | $117 | $37 | $120 | $87 | $94 | $59 | $61 | $37 | $80 |
| Maryland | $201 | $116 | $140 | $135 | $181 | $106 | $121 | $107 | $103 | $80 | $129 |
| Massachusetts | $143 | $99 | $120 | $72 | $155 | $103 | $95 | $78 | $88 | $53 | $101 |
| Michigan | $406 | $204 | $335 | $99 | $424 | $257 | $152 | $209 | $183 | $107 | $238 |
| Minnesota | $160 | $93 | $108 | $90 | $375 | $87 | $101 | $67 | $94 | $68 | $124 |
| Mississippi | $147 | $120 | $145 | $72 | $119 | $96 | $120 | $82 | $88 | $54 | $105 |
| Missouri | $148 | $106 | $135 | $90 | $129 | $66 | $98 | $85 | $114 | $50 | $102 |
| Montana | $154 | $125 | $164 | $82 | $59 | $88 | $171 | $70 | $111 | $50 | $107 |
| Nebraska | $125 | $112 | $130 | $92 | $179 | $77 | $95 | $69 | $102 | $56 | $104 |
| Nevada | $165 | $140 | $155 | $110 | $111 | $112 | $82 | $103 | $91 | $69 | $114 |
| New Hampshire | $128 | $77 | $93 | $50 | $198 | $77 | $63 | $59 | $68 | $41 | $86 |
| New Jersey | $157 | $115 | $231 | $74 | $279 | $119 | $93 | $113 | $136 | $61 | $138 |
| New Mexico | $158 | $103 | $131 | $90 | $161 | $96 | $86 | $69 | $91 | $65 | $105 |
| New York | $147 | $137 | $165 | $78 | $200 | $164 | $96 | $137 | $175 | $85 | $138 |
| North Carolina | $169 | $82 | $99 | $69 | $82 | $111 | $32 | $77 | $99 | $44 | $86 |
| North Dakota | $136 | $145 | $107 | $61 | $398 | $77 | $110 | $76 | $88 | $44 | $124 |
| Ohio | $120 | $62 | $96 | $59 | $106 | $114 | $85 | $70 | $63 | $41 | $82 |
| Oklahoma | $135 | $118 | $136 | $109 | $184 | $122 | $110 | $91 | $105 | $68 | $118 |
| Oregon | $153 | $106 | $111 | $93 | $141 | $111 | $78 | $75 | $97 | $58 | $102 |
| Pennsylvania | $148 | $108 | $131 | $68 | $219 | $86 | $148 | $76 | $75 | $57 | $112 |
| Rhode Island | $189 | $151 | $183 | $125 | $235 | $190 | $116 | $76 | $103 | $65 | $143 |
| South Carolina | $133 | $118 | $166 | $79 | $185 | $118 | $105 | $88 | $105 | $69 | $117 |
| South Dakota | $136 | $151 | $113 | $57 | $230 | $76 | $105 | $67 | $97 | $58 | $109 |
| Tennessee | $144 | $102 | $86 | $78 | $184 | $118 | $92 | $72 | $88 | $58 | $102 |
| Texas | $201 | $176 | $137 | $105 | $178 | $154 | $121 | $90 | $101 | $62 | $132 |
| Utah | $117 | $105 | $115 | $73 | $119 | $93 | $95 | $103 | $88 | $50 | $96 |
| Vermont | $142 | $85 | $103 | $38 | $100 | $77 | $181 | $87 | $75 | $42 | $93 |
| Virginia | $103 | $83 | $100 | $69 | $129 | $86 | $61 | $63 | $73 | $43 | $81 |
| Washington | $114 | $91 | $102 | $75 | $92 | $70 | $60 | $69 | $81 | $46 | $80 |
| West Virginia | $162 | $115 | $139 | $83 | $196 | $104 | $110 | $79 | $102 | $67 | $116 |
| Wisconsin | $123 | $63 | $109 | $62 | $84 | $226 | $94 | $58 | $72 | $47 | $94 |
| Wyoming | $155 | $111 | $130 | $111 | $75 | $114 | $106 | $82 | $98 | $57 | $104 |
Looking at average rates is a good place to start your search for affordable insurance, but it isn’t the only thing you should do.
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The Bottom Line: How to Get Cheap Auto Insurance With No Down Payment
Most drivers can find no money down car insurance easily. Drivers with clean records, inexpensive or older cars, and good credit scores rarely have to make a down payment. Many insurance companies even allow riskier drivers to skip additional down payments.
Now that you know more about how to get cheap auto insurance with no down payment, you can start comparing quotes. Looking at as many insurance companies as possible is the only way to ensure you get the most affordable plan.
Frequently Asked Questions
Does car insurance require a down payment?
You’ve probably seen advertisements for companies that offer no down payment car insurance, but that claim is a little misleading. While insurance companies usually don’t require a down payment, you will need to pay for at least your first month to activate your policy.
Does Geico offer no down payment insurance?
Geico, and many other large insurance companies, usually do not require a down payment beyond your first month.
Can you get cheap auto insurance with no down payment?
Some insurance companies charge a little less than your regular monthly payment when you sign up for a policy, but you won’t find a reputable insurance company that doesn’t charge at all. Insurance experts warn that genuine zero-down policies are usually a scam.
What is no-down-payment auto insurance?
No-down-payment auto insurance refers to an insurance policy that allows policyholders to start their coverage without making an initial payment or down payment. Instead, the premium is typically divided into monthly installments.
How does no-down-payment auto insurance work?
With no-down-payment auto insurance, the insurance company allows you to begin your coverage without paying an upfront premium. Instead, you will be required to pay the premium in monthly installments over the duration of your policy term.
Are there any advantages to choosing no-down-payment auto insurance?
Yes, there are a few potential advantages to selecting no-down-payment auto insurance. It allows you to start your coverage without a large upfront payment, which can be beneficial if you’re facing financial constraints. Additionally, it provides the convenience of spreading your premium payments over time.
Can I cancel my no-down-payment auto insurance policy at any time?
Generally, you have the option to cancel your no-down-payment auto insurance policy, but the specific cancellation terms and any associated fees will depend on the insurance company. It’s essential to review the policy terms and conditions regarding cancellations before making any decisions.
Can I switch from a no-down-payment policy to a traditional policy with an upfront payment?
In most cases, you can switch from a no-down-payment auto insurance policy to a traditional policy with an upfront payment. However, it’s crucial to consult with your insurance company to understand the process, any potential fees, and the impact on your coverage and premium.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
