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Edited by Jackie Cohen | Reviewed by VP of Insurance Sales at Insurify, Shawn Powers
Updated September 22, 2022
When shopping for a car insurance policy, you may run into some auto insurance providers offering coverage with no down payment required. This doesn’t mean that new policyholders receive car insurance for free; rather, it typically indicates there is no additional down payment required other than the premium payment for the first month of coverage.
That said, there are very cheap car insurance policy options available. A reliable way to find the cheapest car insurance rates is to compare auto insurance quotes from multiple car insurance companies that cater to your driving history and specific insurance needs. If you’re in the market for very cheap car insurance with no deposit, compare quotes from top companies.
Car insurance coverage is never free.
Zero-down car insurance does not exist.
The first premium payment often counts as a deposit with no-down-payment insurance.
Insurance payments can be made as monthly, quarterly, semiannual, or annual premiums.
No. You’ll have to make some kind of payment to secure car insurance coverage. A down payment, deposit, or first premium is generally due upon signing.
A no-deposit car insurance policy is not free car insurance coverage, though it often means a new policyholder is not required to pay a deposit or down payment beyond the first premium payment. State Farm, for example, requires you to pay your first monthly premium but doesn’t charge an additional deposit.
Car insurance companies may offer lower initial payment rates, but customers will always need to pay for auto coverage. Progressive, for instance, charges policyholders a lower amount for their first monthly premium. Auto insurers charge some form of a down payment up front to prevent people from taking out a policy to show proof of insurance without paying for coverage.
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Finding a cheap auto insurance policy with a low down payment starts with getting accurate car insurance quotes from several insurers. You’ll typically need to give the insurers some basic information about yourself to get the right type of insurance, including:
Information about your car. The insurer will want to know the year, make, model, color, license plate number, and mileage of your car.
Information about you. The insurance company needs to know your name, age, marital status, job, and ZIP code, as well as information about your driving history and how many miles you drive.
Your credit score. Having a good credit score can help you get discounts on your monthly rates.
Car insurance companies use this information to calculate a quote. They will show you how much your insurance plan will cost you monthly, quarterly, or yearly. The quote should also include information about what you will pay on your first bill, so you’ll be able to see how much of a deposit will be required.
To get the best rates, you should also look for discounts on your car insurance. People with clean driving records can usually get cheaper insurance than high-risk drivers, for instance. Some of the most common car insurance discounts include:
Safe driver discounts
Paperless billing discounts
Multi-vehicle discounts
Safety feature discounts
Compare the discounts that each company offers to get a better sense of what your actual payments will be. Finally, if you are able to pay a deposit, that can help lower the cost of your monthly installments because you’ll be paying part of your premiums up front. Not everyone can afford to put down a large deposit, but anything you can pay up front will help you later.
See More: Car Insurance Quotes
There are a few strategies and resources you can use to find affordable car insurance. Look for these features as you compare companies.
If you are unable to pay your premiums in a lump sum, most companies also offer monthly premium payments for a little extra each month. Specific payment plan options may vary depending on the insurance provider.
Look for reputable companies with a listed number for customer support and read reviews about the company. Being able to contact a customer support representative is crucial for timely issues like claims support and roadside assistance, as well as specific questions related to available discounts and other opportunities to save on premiums.
It’s important to ensure that the company you choose has a long history of paying out claims when it’s supposed to. Reading online reviews and checking out the company’s status with the Better Business Bureau (BBB) and other rating organizations will prevent you from choosing an unreliable company that will make it difficult to complete the claims process.
Compare free quotes from lots of different companies to find the ones with the lowest monthly car insurance premiums for your insurance needs and driving history. An online comparison tool like Insurify can help you compare accurate quotes from multiple providers, making the process of selecting a car insurance policy easier and more affordable.
See More: Best and Worst Sites to Compare Car Insurance
Insurance is a transfer of risk from an individual to an insurance company. For insurance coverage to be valid, there must be an exchange called consideration, which refers to the set premium amount a customer pays to the insurance provider_._ In exchange, the insurance company promises to pay for covered losses according to the specifics of the contract.
Finding very cheap car insurance with no deposit is technically not possible, but affordable car insurance with a low deposit is available for some at certain insurance providers. The best way to find cheap coverage if you’re looking to purchase or renew an insurance policy is by comparing quotes from multiple providers that match your insurance needs and driving history.
Yes, all car insurance providers require you to pay something before your insurance becomes valid. However, not all of them require an additional deposit. Sometimes, your first premium payment is considered your down payment. Coverage for your car will never be completely without cost, so keep that in mind when you see reference to no-deposit car insurance.
Yes, it is possible to find cheap car insurance without a down payment. Some companies accept your first monthly payment as your down payment, which helps minimize your out-of-pocket costs for your first month. Other companies, like GEICO, offer discounted deposits, which can also help people save money.
Several auto insurance providers offer insurance policies that do not require an additional down payment. These companies include Farmers, Progressive, State Farm, Kemper, SafeAuto, Allstate, Nationwide, and Alliance.
Shopping around for all of your car insurance options is one of the most effective ways to find affordable car insurance coverage. Utilize the comprehensive Insurify quote-comparison tool to easily compare online quotes based on your insurance needs, driving history, vehicle type, and more.
Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.
Insurance Writer
Jennifer Pendell is a personal finance expert. She specializes in breaking down dense subjects to make them easier for consumers to understand, with a particular interest in homeowners, renters, and auto insurance concepts. She studied at the University of Iowa.
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VP of Insurance Sales at Insurify
As a licensed insurance agent with over 20 years of experience, Shawn Powers is the VP of Sales and Operations at Insurify. With his expertise, Shawn strives to help customers make informed and educated decisions in regard to their insurance policies. Previously, Shawn spent 15 years with Answer Financial (an Allstate company) as the VP of Sales and Operations.
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