Can I get car insurance with no down payment?
There's no such thing as auto insurance with no down payment or "no money down" car insurance. Some insurers may advertise having "low down payment" car insurance, which typically means you must only pay the first month's premium. You might be wary of an insurer that promotes this misleading tactic. A legitimate insurer will require money upfront before issuing a policy.
Explore Progressive Answers' auto editorial guidelines to find out why you can trust the car insurance information you find here.
Why do insurance companies require a down payment?
Insurance companies require an initial deposit or down payment because their agreement with you as a policyholder is financial. You pay the insurance company to assume the risk of providing coverage for you and your vehicle should you get into an accident, someone steals your vehicle, or suffer another vehicle-related loss. The insurance company would lose money if you got into an accident but have yet to pay the premium. Your initial payment secures the financial agreement with the insurance company, which is why auto insurance with no down payment doesn't work.
How much are auto insurance down payments?
Your insurance company determines the initial payment you make for a car insurance policy, and it largely depends on whether you'll be making monthly, semi-annual, or annual payments. The lowest down payment car insurance might be when the insurer gives you the option of paying a single month as your initial payment.
Can I get car insurance without a deposit?
No. Reputable, zero-down auto insurance doesn't exist. Insurance companies require money upfront before selling a policy, so you cannot get car insurance without a down payment or deposit. Your car insurance "deposit" or "down payment" is typically some percentage of your total car insurance premium. It isn't a separate charge or fee.
What are my options for car insurance payments?
You typically pay either a portion of the total premium or the whole premium when buying a car insurance policy. Many insurers offer the following payment options.
Monthly payments
Paying monthly premiums is the most affordable option for those on a budget but may result in paying more over the long term.
Six or twelve-month payments
Paying for a six- or twelve-month policy upfront can save you more in the long run, especially if your insurer offers a discount for paying in full. Learn more about how to pay for car insurance.
How can you qualify for low down payment car insurance?
You can combine several discounts to lower your rate for cheap down payment car insurance. Bundling your home and auto insurance can save you more with many insurers. You can also find auto insurance discounts for having your documents sent to you electronically, quoting in advance, adding two or more vehicles to your policy, and more. While you won't find reputable auto insurance with no down payment, you can look for discounts to make your car insurance rate more affordable.
Learn more ways to lower your car insurance rate.
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