Auto Insurance Quick Guide
Can You Get Car Insurance With No Down Payment?

The chip shortage, inflation, the pandemic…everyone is seeing hard times. And even something as necessary as a car insurance down payment might seem like the straw that break’s your wallet’s back…so what can be done?
- Can You Get Car Insurance With No Down Payment?
- What Car Insurance Can I Get With No Down Payment?
- Why do Insurance Companies Need a Down Payment?
- What Are My Car Insurance Down Payment Options?
- Why Is My Car Insurance Down Payment So Much Higher Than My Friend's?
- How to Get a Lower Car Insurance Down Payment: Choose the Lowest Coverage Possible
- How to Get a Lower Car Insurance Down Payment: Ask about the Discounts!
- How to Get a Lower Car Insurance Down Payment: Participate in a Drive Program
What Car Insurance Can I Get With No Down Payment?
First off, back to the original question: Is is possible to get car insurance with no down payment?
In short…no.
For one thing, there is no such thing as no down payment car insurance. Even if we would like for there to be.
“If an item does not appear in our records, it does not exist.”
-Madame Jocasta Nu (Star Wars)
One thing that can help ease your mind and hopefully alleviate any outrage towards the idea of a mandatory down payment, is understanding WHY insurance companies cannot do business without one.
Why do Insurance Companies Need a Down Payment?
Car Insurance With No Down Payment is simply not an option. Why?
The reason for this is also quite simple. Insurance companies will not want to provide coverage for insuring a driver who has not paid their insurance premium. Some insurers might word this down payment differently, such as calling a down payment a deposit.
A deposit, or down payment for car insurance is typically the first month’s payment for your new insurance coverage.
A down payment is not an additional cost, this is built into your overall insurance premium.
The initial payment to start a policy is typically more expensive to help cover several costs incurred by taking on a new client:
- Insurance companies run motor vehicle reports to check driving histories, these reports are not free to insurance companies.
- In addition, if a new risk has multiple accidents, or tickets on their driving record, this can also increase the down payment, or deposit significantly.
What Are My Car Insurance Down Payment Options?
So unfortunately we have learned there is just no possibility of finding a car insurance with no down payment. What are the options then?
There are actually plenty of payment options that are offered by each insurance carrier. For example, take at an example of how many payment plans are offered by Progressive (rates will vary significantly from person to person).
Payment Plan | Total Premium | Initial Payment | Payments |
---|---|---|---|
EFT Auto Draft/6 Payments | $1386 | $252.72 | 5 monthly payments of $227.66 |
EFT Auto Draft/6 Payments | $1386 | $298.00 | 5 monthly payments of $227.66 |
EFT Auto Draft/5 Payments | $1386 | $434.00 | 4 monthly payments of $239.00 |
Payment Plan | Total Premium | Initial Payment | Payments |
---|---|---|---|
Auto Payments to Credit/Debit Card/6 payments | $1386 | $252.72 | 5 monthly payments of $227.66 |
Auto Payments to Credit/Debit Card/5 payments | $1386 | $434.00 | 4 monthly payments of $243.00 |
Payment Plan | Total Premium | Initial Payment | Payments |
---|---|---|---|
Pay Premium In Full | $1320 | $1320 | 1 Time Payment |
Much like Progressive, payment options available to customers are paying in full, monthly installments via autopay, and some companies offer a two, and three month payment option as well.
The advantages of paying in full as you might have guessed, is saving a pretty penny on your insurance policy.
Some companies will offer anywhere between $100-$300 savings for paying in full. Of course, not every customer can afford this payment at all times.
Or perhaps, the customer may only need insurance coverage for 4 months instead of a total of 6 months. In this case, it would make more sense to pay monthly installments.
Without making a down payment, or deposit on an insurance policy, there is no coverage in place until payment is received to bind the insurance policy, car insurance with no down payment is simply impossible to find.
Why Is My Car Insurance Down Payment So Much Higher Than My Friend’s?
If you and your bestie are comparing car insurance rates, don’t assume that you have the right to be paying as low as they might be paying.
As mentioned above, there are so many factors that determine a person’s car insurance rates. If you are a young, inexperienced driver, you will automatically be paying more than the average person.
Do you live in a highly populated city? Due to the high population, insurance companies equate that with a higher chance of getting in a car accident…so your rates will be higher.
Are you an older adult with plenty of driving experience, but have unfortunately accrued a bad credit history? Insurance carriers now view you as someone likely to have difficulty making payments, so your down payment will probably be high.
Have you bounced around from insurance company to insurance company, leaving behind a hefty balance due? This is a big red flag to auto insurance companies…if they decide to cover you at al…they will likely slap you with a huge down payment.
Take a look at the biggest rating factors you need to know about and how much it will affect your car insurance down payment.
Insurance Factor | Rating Impact (High,Medium,Low) |
---|---|
Age | High |
Vehicle Make and Model | Medium |
Major Violations (DUI,DWI,etc) | High |
Credit history | High |
Gender | Medium |
Location | Medium |
Marital Status | Medium |
Driving record | High |
Claims History | Medium |
Insurance History | Medium |
State Requirements | Medium |
Anual Mileage | Low |
Type of Vehicle Coverage | Medium |
Profession | Low |
Education | Low |
Color of car | none |
How long have you owned the vehicle | Low |
How many drivers per vehicles listed | medium |
lien holder | None |
vehicle performance (symbol) | Medium |
vehicle safety features | Medium |
anti theft device | Low |
How to Get a Lower Car Insurance Down Payment: Choose the Lowest Coverage Possible
Do not feel too downhearted if you have been negatively affected by some of the above factors. There’s always an opportunity to turn things around!
One thing you can do is only pay for the car insurance coverage you absolutely need.
Are you required to have full coverage? Then see about changing your deductible. The higher your deductible…the lower your monthly rate.
If your car is older, and values less than around $4000, you might be able to get by with liability only insurance (Just make sure you are at least paying the state minimum that is legally required.)
If the idea of going without full coverage (adding comprehensive and collision) makes you break out in hives…that’s completely understandable. However…use the policy period with your liability only rates (which are so much cheaper) to get your credit back into good shape, stay accident and violation free, pay your monthly installments on time, and then…your rates might greatly improve!
If you don’t own a vehicle, you can get even cheaper rates by considering a broad form or a non-owners policy.
Whatever the case, communicate with your insurance agent to make sure you have a perfectly customized policy to meet your budget and your needs.
How to Get a Lower Car Insurance Down Payment: Ask about the Discounts!
No matter how bleak your financial situation might seem, insurance companies want to help you.
Another important reason that you should work with an insurance agent is because they are trained to help you find applicable car insurance discounts.
These are important not to disregard. A paperless discount for example, could save you anywhere from $20-$40 dollars a month on your policy. It is the easiest of the discounts to apply for, all you need to do is a provide an email address.
Take a look at some of our favorite carriers and the different opportunities for discounts they provide:
Progressive Discounts |
---|
Paperless Discount |
Homeowners |
Paid in Full |
No Accidents or Violations |
Advanced Quote |
Continuous Insurance |
Education Discount |
Multi Policy |
Multi Vehicle |
Military |
Married |
Auto Pay |
Dairyland Auto Insurance Discounts |
---|
Continuous Insurance |
Homeowners |
Auto Pay |
Military |
Paid in Full |
Multi Policy |
Married |
Multi Vehicle |
No Accidents or Violations |
Travelers Insurance Discounts |
---|
Auto Pay |
Continuous Insurance |
Married |
Multi Policy |
Multi Vehicle |
Homeowners |
No Accidents or Violations |
Paid in Full |

How to Get a Lower Car Insurance Down Payment: Participate in a Drive Program
Drive programs are the monitoring devices or apps provided by the insurance company that monitor your driving habits.
Many people have a lot of misconceptions about auto insurance drive programs, and it’s important that when used correctly they can save you a LOT of money on your policy.
Ask your agent about one of these programs if you are curious if you would be a good fit.
In Conclusion…
While it’s not always ideal having to put money down on anything, let alone an insurance policy, it is unavoidable. However, there are many steps that a person can take to lower there rates and find a down payment that could work for them. So don’t give up!
Last Updated on by Lauren Mckenzie