No Down Payment Auto Insurance

No down payment auto insurance is a form of coverage that doesn't require a down payment; however, you will likely still be required to pay the first month's premium. Even with no down payment auto insurance policies, your coverage usually won't start until payment is made. Plenty of companies offer no down payment auto insurance, including Progressive, GEICO, and more.

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Chris Tepedino is a feature writer that has written extensively about auto insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and Cinncinati.com. ...

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Reviewed by Rachael Brennan
Licensed Insurance Agent

UPDATED: Jul 19, 2021

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Can't-Miss Facts

  • With no down payment auto insurance, the first month’s premium still has to be paid.
  • Rates can depend on many factors, including the vehicle you drive and the state where you live.
  • Premiums for no down payment auto insurance can be paid monthly or all at once.

No matter the vehicle you are driving, you are usually required to have auto insurance. This can pose a problem for those without the funds to pay the down payment for an auto insurance policy. While there are cheaper down payment options, you are unlikely to find an auto insurance company that starts your policy without any payment.

Some auto insurance companies may offer no down payment insurance among their auto insurance options, but you will still likely have to pay your first month’s premium before your policy starts.

When looking to buy no down payment auto insurance, it is important to compare rates from different companies. Enter your ZIP code into our quote box to get great quotes from companies in your area.

More About No Down Payment Auto Insurance

Firstly, what is a down payment for auto insurance? It is the money you pay for up front. With no down payment auto insurance, the buyer isn’t required to pay up front, but coverage won’t begin until a premium is paid. These auto insurance premiums can be paid either month-to-month or all at once, depending on the driver’s preferences.

While no down payment auto insurance might seem like a great way to save money, you might end up paying more in premiums in the long run. No down payment auto insurance can be a great option for those that can’t pay their premium all at once. Though it may cost more, some find no down payment auto insurance easier to pay for in the long run.

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How much does no down payment auto insurance cost?

There are many factors that have to be determined before your auto insurance company gives you no down payment auto insurance rates. As with any type of auto insurance policy, auto insurance rates may be based on your age, the state in which you live, your credit score, and much more.

See how rates can differ based on credit score with the chart below, which covers average rates in Colorado.

Average Annual Auto Insurance Rates by Credit History in Colorado
CompanyPoor Credit History Average Annual RatesFair Credit History Average Annual RatesGood Credit History Average Annual Rates
Allstate$7,066.00$5,439.82$4,105.68
Farmers$6,142.35$4,988.44$4,739.93
Progressive$4,819.49$4,108.11$3,768.17
American Family$4,850.67$3,452.49$2,895.90
Nationwide$4,522.20$3,578.13$3,118.09
USAA$4,943.34$2,816.63$2,256.64
State Farm$4,541.00$2,918.53$2,352.76
Geico$3,717.48$3,091.66$2,465.94
Liberty Mutual$3,999.04$2,446.38$1,947.80
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There are two states, New Hampshire and Virginia, that don’t require car insurance, which means no down payments. That being said, it is always a good idea to have auto insurance, no matter where you live.

If you end up in an accident, you don’t want to be stuck with a bill that will need to be paid out of pocket. Information on the insurance laws in your state can be found via the NAIC website.

The best way to get no down payment auto insurance quotes is to contact the company you choose directly.

Do I qualify for no down payment auto insurance?

No down payment auto insurance isn’t available to everyone. In fact, the only states where these types of policies are available are Arizona, California, Florida, Georgia, New York, Oklahoma, and Washington.

High-risk drivers may find great difficulty in qualifying for no down payment auto insurance, even in the states that offer it. Drivers that own newer, more expensive vehicles, as well as younger drivers, may both be considered high risk.

The qualifications for no down payment auto insurance can also differ greatly based on the company in which you get your insurance.

Which companies offer no down payment auto insurance?

Doing a search of the auto insurance companies in your area will likely yield the best results for companies that offer no down payment auto insurance.

Nationwide companies that offer no down payment auto insurance include USAA, Farm Bureau Insurance, State Farm, American Family, GEICO, Progressive, and many more.

There are also many smaller, local auto insurance companies that claim to offer no down payment auto insurance policies. These companies should be heavily researched before purchasing a policy from them.

For information on specific no down payment auto insurance options, it’s best to speak with an agent at the company of your choice.

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Ways to Save Money on Auto Insurance

While there are affordable no down payment auto insurance options, this type of policy may not work for everyone. If you are having trouble paying auto insurance premiums, then it’s important to be aware of all the money-saving options available.

First off, investing in a safer vehicle can save you plenty on auto insurance rates. More expensive vehicles often come with much higher insurance rates and can be harder to insure. An example of this can be seen in the chart below.

Average Monthly Auto Insurance Rates by Vehicle Type
CompaniesAverage Monthly Rates for a 2015 Honda AccordAverage Monthly Rates for a 2012 Porsche Boxster Spyder
Allied$38$85
Farmers$80$175
State Farm$90$183
Allstate$94$183
Liberty Mutual$94$240
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There are also plenty of discounts offered by auto insurance companies that can help you save plenty on auto insurance. Common discounts offered by top companies include defensive driving, good student, safe driver, low mileage, military, senior, and many more.

Additionally, if you are also in need of home insurance, you might be able to bundle a policy with your insurance company to save on rates.

While no down payment auto insurance may seem like a good deal at first, you could end up paying more in the long run. Determine your budget and needs before deciding on a no down payment auto insurance policy.

Do proper research on the company that offers you no down payment auto insurance car insurance. Compare rates from some of the best auto insurance companies in your area by using our comparison tool.

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