No Down Payment Car Insurance: Compare & Save
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No down payment car insurance usually means a policy that starts with just your first month’s premium, with no extra deposit. True $0-down car insurance does not exist — licensed insurers require a first payment before coverage begins. According to Insurify, that first payment typically ranges from about $85 to $184, depending on your driver profile, and some insurers, including GEICO, State Farm, Allstate and USAA, generally require no extra deposit beyond it. Choosing liability-only coverage and comparing quotes can lower what you pay upfront.
It’s worthwhile to note that it’s very difficult to get car insurance without down payment. Most insurance providers need money upfront in order to issue you coverage. But there are some ways around this.
Some insurance providers will accept your first month’s premium as your down payment. This means that you’ll only need to come up with a payment of one month in order to get cheap full coverage auto insurance with no down payment. This is often marketed as no money down auto insurance, but of course, you’re still putting the first payment down.
Some insurance providers offer heavily discounted down payments, also known as low down payment auto insurance, at less than a month’s premium in order to attract clients. Make sure that your monthly premiums don’t get bumped up to cover this discount.
Not with $0 upfront. An insurance policy is a contract, and coverage starts only after you make your first payment. What many insurers do offer is a policy where your first month’s premium is the only amount due to start often called “no down payment” or “no deposit” car insurance. Your later payments are then made monthly.
The terms are often used interchangeably. A down payment is usually your first premium payment. Some insurers may also ask for an additional amount upfront sometimes called a deposit depending on factors such as your credit history, driving record or payment plan. “No deposit” car insurance means no extra amount is required beyond your first payment.
| Driver Profile | Estimated First Monthly Payment Range |
|---|---|
| Senior drivers and drivers with good credit | $85 – $98 |
| Drivers with poor credit and teen drivers | $121 – $184 |
It can’t be over-emphasized that reputable insurance providers don’t offer coverage for free. If you’re getting an offer like this, make sure to read the fine print and double-check the credibility/reputation of the insurance company.
Insurance providers need some money upfront to protect themselves in case you immediately get into an accident once covered. That money can be called a down payment or monthly premiums paid upfront, but you will need to at least pay for one month of premiums before coverage can start.
If you’re offered a discounted down payment, or you choose to pay monthly premiums versus 6 months to a year upfront, you’ll want to keep a close eye on your premiums. Insurance companies prefer that you pay for a year upfront and will offer you discounts to do so, but if you choose to pay monthly, they may hike your monthly premiums to compensate for the added risk on their part.
| Insurers | Extra Deposit Typically Required? | Average Minimum-Coverage Monthly Quote Range |
|---|---|---|
| USAA (military members, veterans and families), State Farm, GEICO, Allstate | No | $51 – $91 |
Recent quotes found by Insurify users ranged from about $41–$57 per month for liability-only coverage and $55–$159 per month for full coverage. Your quote may differ.
Car insurance with no down payment can sometimes be tricky to find, but there are some people that won’t qualify for it regardless. If you have a poor driving history (especially if you’ve had to file an SR-22 form), if you have bad credit, or if you own an expensive, newer car, you’ll find it difficult to qualify for no or low down payment auto insurance.
If that’s the case, you do have alternatives in order to save on car insurance, which we’ll dive into next.
| Factor | Pay Monthly | Pay in Full |
|---|---|---|
| Upfront cost | Lower — first month only | Higher — full 6 or 12 months |
| Total cost | May be higher due to installment fees | Often lower; many insurers offer a paid-in-full discount |
| Risk | Missing a payment can lead to cancellation | No monthly payments to miss |
Auto insurance without a down payment is technically possible to find, but keep in mind that you’ll be required to pay some money upfront to activate the policy and coverage. Be wary of any insurance provider that somehow gives you cheap full coverage auto insurance with no down payment without paying a cent, as it may not be legitimate.
If you’re looking to save money on car insurance, skipping the down payment might not be your best bet: try other methods like bundling insurance policies, improving your driver history, and raising your deductible.
At the end of the day, car insurance is required by law in most states to drive a vehicle, so for some, zero down payment car insurance is the best option to get the coverage they need right away.
No down payment auto insurance sounds ideal, especially if you need car insurance fast. But it’s a little too good to be true: there are definitely insurance providers that will allow you to skip a traditional down payment, but you’re still going to have to pay at least one month upfront in order to secure coverage.
Be wary of any insurance providers that promise instant car insurance coverage without any payment upfront. Having car insurance is critical if you’re going to be driving, but you need coverage you can trust. If a down payment is going to be tough to swing, try to find an insurance quote that allows you to pay just one month upfront to make it more affordable, and compare quotes to make sure you’re getting the best deal possible.
If you’re not required to pay a down payment, then your costs will likely be at least one month’s worth of premiums to get insurance. Your premiums will depend on a variety of factors, including your vehicle, your driving history, your age, and more.
Not necessarily. In the long run, paying week by week is more expensive than a plan that lasts a year. However, weekly insurance prices are quite competitive. If you only need insurance for a week or two, shopping around can provide a great deal.
Not with $0 upfront. Licensed insurers require a first payment before coverage begins. Many insurers let you start a policy with just your first month’s premium and no extra deposit.
Usually your first month’s premium. According to Insurify, estimated first payments range from about $85 to $184 per month depending on your driver profile.
According to Insurify, GEICO, State Farm, Allstate and USAA generally don’t require an extra deposit beyond your first payment. USAA is only available to military members, veterans and their families.
No. Legitimate insurers require payment before your coverage starts. Be cautious of any offer that promises coverage with no payment.
The term itself isn’t a scam it usually means no extra deposit beyond your first payment. But offers of coverage with no payment at all, such as “first month free,” can be a warning sign.
A down payment is usually your first premium payment. A deposit is any additional amount an insurer may require upfront, often based on credit or driving history.
Paying in full is often cheaper overall because many insurers offer a paid-in-full discount and you avoid installment fees. Monthly payments lower what you pay upfront.
Compare quotes, choose liability-only coverage if appropriate, raise your deductible, ask about discounts and consider pay-per-mile insurance if you drive less.
Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
