Cheap Auto Insurance With No Down Payment (2023)
If you're looking at price among the best no-deposit auto insurance companies, USAA is the most affordable at $161 a month on average, followed by Geico at $179 a month. While you will always have to make an initial payment to secure coverage, many top providers offer car insurance with no down payment.
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Licensed Insurance Agent
UPDATED: Dec 4, 2023
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: Dec 4, 2023
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
- Usually, “buy now pay later car insurance” options cost more in the long run
- Since you can usually only get a liability policy with zero-down auto insurance, it might be right for you if you only need minimum coverage
Drivers everywhere are trying to save money by purchasing cheap auto insurance. If you’ve been desperately conducting internet searches for “car insurance with no money down,” “cheap auto insurance no down payment,” or”very cheap car insurance no deposit” you’ll be happy to know that you can find an auto insurance company that offers very cheap auto insurance with no deposit options right from your smartphone or personal computer.
As long as you have internet access, you can find the best no-deposit auto insurance companies that don’t require you to pay money that would be held in reserve if you were to miss a payment.
Now, please take note that you must always make a payment to activate your insurance coverage. However, you can choose to pay in one lump sum or monthly segments for very cheap auto insurance no deposit policies. You shouldn’t be disappointed that you can’t purchase no money down car insurance, because if you can afford to pay for your entire policy period in full, you could end up saving money.
Keep reading to learn how you can acquire free auto insurance quotes for very cheap auto insurance no deposit policies and get instant auto insurance coverage. If you can’t wait to acquire very cheap auto insurance no deposit, enter your ZIP code to get free quotes.
Understanding No-Deposit Auto Insurance
If you perform a quick Google search for “zero down payment car insurance,” or “buy now pay later car insurance,” you’ll be rewarded with dozens of results that do nothing to clear up the confusion about what policies may be out there for you to choose from.
Let’s take a look at some important terms:
- Zero-Down Deposit – Zero down deposit is the acquisition of car insurance without paying a deposit. Some companies offer this as a gimmick to entice consumers into buying less-than-quality auto insurance
- No Down Payment – No down payment is often confused with zero down deposit but can be differentiated by the fact that the payment isn’t a deposit but actually the first month of an auto insurance policy
- Monthly Payment – Monthly payments are based on a year-long insurance policy and then divided into 12 equal installments
Some companies offer cheap no-deposit auto insurance without requiring an upfront payment. Providers may advertise a product as “buy now pay later car insurance,” “no down payment insurance,” or “no-deposit insurance,” but it all means the same. Does it work out cheaper, though?
Most insurance companies charge a deposit or down payment to express good faith, usually a percentage of the annual premium and not an extra charge. This practice protects your insurer from drivers who may only purchase one month to get proof of auto insurance but default on later payments since companies offering no-money-down auto insurance assume a risk.
Insurance companies base rates on a risk-to-reward principle, meaning the risk gets offset some other way. Ultimately, it also means paying more for “cheap” insurance.
Imagine you receive two quotes for similar policies with different payment structures. The first seems to be a good deal, costing $134 monthly to insure your car. This policy includes a 20% deposit, so you’d pay around $320 upfront.
On the other hand, the “buy now, pay later” policy has monthly rates of $150 but requires no down payment or deposit. So, in reality, no-deposit car insurance can become more expensive in the long run.
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No-Deposit Auto Insurance Coverage Options
Insurance companies are different, so you must talk to your agent to determine what you can afford. However, no-deposit car insurance likely won’t offer more than liability coverage.
Each state has minimum auto insurance requirements, but it only covers damages to the other party and their vehicle after an accident up to a certain amount. The only way to protect yourself and cover all damages, no matter who is at fault, is to purchase full coverage auto insurance.
Some types of auto insurance that offer increased coverage are:
- Collision coverage: Collision auto insurance covers the cost of damages to your vehicle if it is involved in most types of collisions.
- Comprehensive coverage: Comprehensive auto insurance pays for non-collision damages to your vehicle.
- Personal injury or medical coverage: Personal injury protection auto insurance and medical payments auto insurance policies cover the medical expenses for the driver and passengers, regardless of fault.
You likely won’t get full coverage auto insurance if you want zero-down auto insurance, but you can look for ways to lower your rates for auto insurance with no upfront payment and find the coverage you need. Read more about collision vs. comprehensive auto insurance.
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?
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.
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.
Which insurance companies offer no-deposit auto insurance?
You can purchase cheap full coverage auto insurance with no down payment from any of these 10 titans of the insurance industry:
- USAA
- Geico
- American Family
- Nationwide
- State Farm
- Progressive
- Travelers
- Farmers
- Allstate
- Liberty Mutual
Of course, each of these companies has its own winning features besides offering very cheap car insurance, so make sure to take a close look at each one to know that you are making the best choice for your insurance needs.
USAA
Even those who have served in the military cannot buy car insurance with no down payment, but this insurance company has a long history of providing great insurance coverage at excellent rates to active-duty servicemembers, veterans, and their families. USAA has been in business since 1922 and has an A++ rating from A.M. Best. Learn more in our USAA auto insurance review.
Geico
If you want affordable or very cheap auto insurance no deposit options, you won’t need to look further than this company. Serving drivers since 1936, Geico too has an A++ rating from A.M. Best. You can even use the Geico mobile app to keep an eye on your claims, review your coverages, and make insurance payments. Learn more in our Geico auto insurance review.
American Family
While it may have opened its doors for business in 1936, American Family has certainly not fallen behind the times. You can request a free quote right from the company website, and you can trust this company to pay out on claims as it has an A rating from A.M. Best. Learn more in our American Family auto insurance review.
Nationwide
Nationwide has been on your side for over 90 years and can boast of an A+ rating from A.M. Best. Not only that but client convenience is taken seriously at this company. If you need to file a claim outside of business hours, you can log into your online account and start the claims process whenever you need to. Learn more in our Nationwide auto insurance review.
State Farm
Founded in 1922, State Farm has earned an A++ rating from A.M. Best, so you can rest assured that this company will be able to get you the funds you would need to fix your car should anything happen to it. State Farm also offers a 24-hour customer service line where you are able to make changes to your policy after your local agent has closed up shop for the day. Learn more in our State Farm auto insurance review.
Progressive
Another financially strong company, Progressive has been helping drivers protect themselves and their vehicles since 1937 and has an A+ rating from A.M. Best. With Progressive’s mobile app, you can access your insurance documents whenever you need to and can even review your policy from home. Learn more in our Progressive auto insurance review.
Travelers
With an A++ rating from A.M. Best, you can trust that your policy is in good hands with Travelers, which is the oldest insurance company on this list. It began doing business in 1864 and has not stopped providing great insurance products. You can even purchase renters insurance from this company to protect all of your property. Learn more in our Travelers auto insurance review.
Farmers
Founded in 1928, Farmers still provides excellent insurance products to this day. You can even add rental car reimbursement to your policy. So if you were in a collision and had to send your primary ride to the mechanic, you could still get to work and run errands without breaking the bank. Farmers also has an A- A.M. Best rating. Learn more in our Farmers auto insurance review.
Allstate
Allstate has been in business since 1931 and has earned an A+ rating from A.M. Best. This illustrious company also offers accident forgiveness to eligible drivers so you won’t have to worry about your rates increasing after an accident. You can learn even more about this company by checking out a free Allstate auto insurance review or two online.
Liberty Mutual
If you want to buy auto insurance, very cheap auto insurance no deposit policies from Liberty Mutual might be of interest to you. In business since 1912, you can even purchase a home insurance policy from this company and save money with an insurance bundle. Liberty Mutual has an A.M. Best rating of A. Learn more in our Liberty Mutual auto insurance review.
When looking at the best no-deposit auto insurance companies to choose which one is right for you, look for providers that offer flexible payment options, competitive rates, and reliable customer service. It’s also a good idea to read reviews and get recommendations from friends or family.Eric Stauffer Licensed Insurance Agent
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Cheap No-Deposit Auto Insurance Rates
You can find the cheapest car insurance now pay later by comparing rates from various companies offering it. The cost for no upfront deposit auto insurance varies for several reasons, including company, demographics, and driving profile. You’ll pay about 22% more for zero-down auto insurance than car insurance with a deposit.
Check out the table below to compare no-deposit car insurance quotes from the best car insurance companies:
No-Deposit Auto Insurance Monthly Rates by Company
| Companies | No Down Payment Rates | Rates After 10% Deposit | Rates After 20% Deposit |
|---|---|---|---|
| USAA | $161 | $145 | $129 |
| Geico | $179 | $161 | $143 |
| American Family | $224 | $202 | $180 |
| Nationwide | $229 | $206 | $183 |
| State Farm | $235 | $212 | $188 |
| Progressive | $283 | $254 | $226 |
| Travelers | $287 | $259 | $230 |
| Farmers | $288 | $260 | $231 |
| Allstate | $318 | $286 | $255 |
| Liberty Mutual | $398 | $358 | $318 |
As you can see, USAA auto insurance offers the cheapest pay later car insurance rates, averaging $161 monthly, though only military members and their families qualify for coverage. The next most affordable no-deposit car insurance company is Geico auto insurance, with average monthly rates of $179.
Compare insurance now pay later quotes by company to find the cheapest no-deposit car insurance.
Read more: Factors That Affect Auto Insurance Rates
Ways to Get Cheap No-Deposit Auto Insurance
There are several ways for policyholders to locate very cheap car insurance no deposit. Follow the tips below if you’re looking to lower your no-money-down car insurance rates:
- Ask for auto insurance discounts from your insurer.
- Enroll in safe driving programs.
- Buy an affordable vehicle to insure. Check out our article, Which cars have the lowest auto insurance premiums?
- Learn how to save money by bundling insurance policies.
When it comes to auto insurance discounts. most insurance companies offer a wide variety that drivers can utilize to save money on their policies. You can see an extensive summary of the discounts offered by the companies on this list and others here:
Auto Insurance Discounts by Company
| Discounts | AAA | Allstate | Esurance | Farmers | Geico | Liberty Mutual | MetLife | Nationwide | Progressive | Safeco | State Farm | Travelers | USAA |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Adaptive Cruise Control | x | x | x | x | |||||||||
| Adaptive Headlights | x | x | x | x | x | ||||||||
| Anti-lock Brakes | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Anti-Theft | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Claim Free | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Continuous Coverage | x | x | x | x | x | x | x | x | |||||
| Daytime Running Lights | x | x | x | x | x | x | x | x | x | x | x | ||
| Defensive Driver | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Distant Student | x | x | x | x | x | x | x | x | x | x | |||
| Driver's Ed | x | x | x | x | x | x | x | x | x | x | x | x | |
| Driving Device/App | x | x | x | x | x | x | x | x | x | x | x | x | |
| Early Signing | x | x | x | x | x | x | x | x | x | x | |||
| Electronic Stability Control | x | x | x | x | x | x | |||||||
| Emergency Deployment | x | ||||||||||||
| Engaged Couple | |||||||||||||
| Family Legacy | x | x | x | x | |||||||||
| Family Plan | x | x | |||||||||||
| Farm Vehicle | x | x | x | ||||||||||
| Fast 5 | x | ||||||||||||
| Federal Employee | x | x | x | x | |||||||||
| Forward Collision Warning | x | x | x | x | |||||||||
| Full Payment | x | x | x | x | x | x | x | x | x | ||||
| Further Education | x | x | x | x | x | x | |||||||
| Garaging/Storing | x | x | x | ||||||||||
| Good Credit | x | x | x | x | |||||||||
| Good Student | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Green Vehicle | x | x | x | x | x | ||||||||
| Homeowner | x | x | x | x | x | x | x | x | x | x | x | ||
| Lane Departure Warning | x | x | x | x | |||||||||
| Life Insurance | x | x | |||||||||||
| Low Mileage | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Loyalty | x | x | x | x | x | x | |||||||
| Married | x | x | x | x | x | x | x | x | x | ||||
| Membership/Group | x | x | x | x | x | x | x | x | |||||
| Military | x | x | x | x | x | x | x | x | x | ||||
| Military Garaging | x | ||||||||||||
| Multiple Drivers | x | ||||||||||||
| Multiple Policies | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Multiple Vehicles | x | x | x | x | x | x | x | x | x | x | x | x | |
| New Address | x | ||||||||||||
| New Customer/New Plan | x | x | |||||||||||
| New Graduate | x | ||||||||||||
| Newer Vehicle | x | x | x | x | x | x | x | x | x | x | x | x | |
| Newly Licensed | x | ||||||||||||
| Newlyweds | x | ||||||||||||
| Non-Smoker/Non-Drinker | |||||||||||||
| Occasional Operator | x | ||||||||||||
| Occupation | x | x | x | x | x | x | x | x | x | ||||
| On Time Payments | x | x | |||||||||||
| Online Shopper | x | x | |||||||||||
| Paperless Documents | x | x | x | x | x | ||||||||
| Paperless/Auto Billing | x | x | x | x | x | x | x | x | x | x | x | ||
| Passive Restraint | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Recent Retirees | x | ||||||||||||
| Renter | x | x | |||||||||||
| Roadside Assistance | x | ||||||||||||
| Safe Driver | x | x | x | x | x | x | x | x | x | x | x | x | |
| Seat Belt Use | x | ||||||||||||
| Senior Driver | x | x | x | x | x | ||||||||
| Stable Residence | x | x | x | ||||||||||
| Students & Alumni | x | x | x | x | x | ||||||||
| Switching Provider | x | x | x | x | x | ||||||||
| Utility Vehicle | x | x | x | ||||||||||
| Vehicle Recovery | x | x | x | x | x | x | x | x | x | x | x | x | x |
| VIN Etching | x | x | x | x | x | x | x | x | x | ||||
| Volunteer | |||||||||||||
| Young Driver | x | x | x | x |
Remember to review your quotes carefully as you fill them out. Failing to do so could mean you miss adding on a discount that could potentially save you quite a bit of money.
If you want to switch from a traditional auto insurance policy to a no-deposit auto insurance policy, you usually can. However, it’s essential to check with your current insurance provider and inquire about any applicable fees or requirements for making the switch.Dani Best Licensed Insurance Provider
The Bottom Line: Best No-Deposit Auto Insurance Companies
Cheap no-deposit auto insurance doesn’t always work out to be more affordable in the long run. So, it’s important to do the math when comparing rates online for the “need car insurance now pay later no deposit” option to ensure you’re not actually paying more.
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— AutoInsurance.org (@AutoInsurance) June 5, 2023
Car insurance companies are required to report to the state Department of Motor Vehicles when a new driver signs up for auto insurance coverage or when a driver decides to cancel an insurance policy.
The car insurance company has very little incentive to provide you with proof of coverage upfront if you do not pay some sort of deposit to them.
You will always need to make a payment to purchase an insurance policy; however, many companies will not require you to pay a deposit to be held in reserve. When shopping for quotes for no deposit car insurance online, you can find top-of-the-line companies that can get you the coverage you need with no deposit required.
Read more: How to Find Auto Insurance Quotes Fast
Consider the long-term benefits of increased coverage if you can afford it, and do what you can to lower your rates so you have increased options. The bottom line is that you can find the balance of great coverage at affordable rates. Don’t forget to make sure that every discount you are eligible for has been applied to your quotes so you can get the best rate option possible.
Enter your ZIP code to get free, very cheap auto insurance no deposit policy quotes from insurance companies near you today.
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.
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 your policy term.
Are there insurance companies that offer no-deposit auto insurance?
Yes, there are insurance companies that offer no-deposit auto insurance policies. These companies understand that not everyone can afford to pay a lump sum upfront, so they provide options for monthly payment plans without a deposit.
Are no-deposit auto insurance policies more expensive than traditional policies?
No, not necessarily. The cost of a no-deposit auto insurance policy can vary depending on various factors, such as your driving history, the type of vehicle you own, and the coverage options you choose. While some providers may charge slightly higher premiums for no-deposit policies, others may offer competitive rates comparable to traditional policies.
Can I cancel a no-deposit auto insurance policy if I change my mind?
Yes, in most cases, you can cancel a no-deposit auto insurance policy if you change your mind. However, it’s important to review the terms and conditions of the policy and understand any potential cancellation fees or penalties that may apply. Contact your insurance provider directly to discuss the cancellation process and any associated costs.
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.
Are there any drawbacks to choosing a no-deposit auto insurance policy?
While no-deposit auto insurance policies can be convenient for those who prefer to pay monthly, there are a few considerations to keep in mind. Some insurance companies may charge slightly higher premiums for these policies, and there may be administrative fees or interest charges associated with the installment payments.
Additionally, failing to make the monthly payments on time may result in policy cancellation or other penalties.
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.
Do all insurance companies offer no-deposit auto insurance?
No, not all insurance companies offer no-deposit auto insurance. It’s important to research and compare different providers to find those that offer this type of policy. You may also consider reaching out to insurance brokers or agents who can help you find suitable options based on your specific needs and preferences.
Is it necessary to have a good credit score to qualify for a no-deposit auto insurance policy?
While a good credit score can be beneficial when applying for any type of insurance, not all insurance companies require a good credit score to qualify for a no-deposit auto insurance policy. Some providers may consider other factors, such as driving record and previous insurance history, when determining eligibility and premiums.
Can I get cheap car insurance in PA with no down payment?
Yes, Travelers is known for offering the most affordable auto insurance in Pennsylvania.
Who is cheaper, Geico or Progressive?
Geico has the overall lower rates, but high-risk drivers usually get better rates with Progressive.
Who normally has the cheapest car insurance?
Auto-Owners, Geico, Travelers, and USAA are among the providers that have the most affordable auto insurance.
Who has the cheapest full coverage insurance?
State Farm usually has the most affordable auto insurance if you’re seeking full coverage.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Licensed 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.
