Cheapest Low Down Payment Car Insurance 2024


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ByMark Fitzpatrick
Edited byVictoria Copans
ByMark Fitzpatrick
Edited byVictoria Copans

Updated: May 20, 2024

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GEICO is the go-to option for the cheapest liability car insurance at $42 per month and the cheapest full coverage car insurance at $77 per month. State Farm is another strong contender, especially for high-risk drivers.

Payment options are flexible, ranging from monthly to bi-monthly and even full payments for six or 12-month policies. While paying upfront often saves you money in the long run, monthly payments can make insurance more accessible. Maintaining a good credit score and a clean driving record can further lower your premiums, and various discounts are available to help you save even more.

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Key Takeaways

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To find car insurance with a low down payment, look for the company with the cheapest monthly rates.

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Consider shopping around and choosing state minimum coverage to get the best rates. You can also set up payment discounts and maintain a clean driving record to further reduce costs.

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GEICO offers the best and cheapest car insurance with a low down payment.

Why Trust MoneyGeek? To discover the very cheapest no deposit car insurance, we gathered car insurance quotes from Quadrant Information Services and state departments of insurance to discover the cheapest car insurance rates from providers that offer monthly payment plans.

83,056Quotes Analyzed
 
46Companies Compared
 
473ZIP Codes

How a Car Insurance Down Payment Works

A down payment or deposit is the initial payment you make to activate your policy. Your coverage won't take effect until you make this payment.

When a car insurance company asks you to make your first initial payment, they're essentially asking you to pay your first installment. This down payment usually equals at least your first month's premium if you're paying in installments.

Car insurance companies offer various flexible payment options to suit different financial situations. You can choose to pay monthly, bi-monthly or even opt to pay your entire six- or 12-month policy in full.

If you choose to pay a lump sum for your car insurance, a "down payment" essentially becomes the full payment for the entire policy term, whether six or 12 months.

If you're looking to keep your down payment as low as possible, the best approach is to shop around for the most affordable car insurance and opt for a monthly payment scheme. Some insurers will offer you a discount if you sign up for an automatic payment system.

Cheapest Liability-Only Car Insurance Company With a Low Down Payment

The car insurance companies with the lowest monthly rates are:

  • GEICO: $42 per month, $501 per year
  • State Farm: $54 per month, $645 per year

Finding coverage with the lowest down payment essentially means looking for the cheapest car insurance companies.

If a low down payment is your goal, consider liability-only coverage.

This basic option, which meets your state's minimum car insurance requirements, is a straightforward way to drive legally and keep costs down. If your car is older, a liability-only policy with lower coverage limits can also be a savvy long-term choice.

GEICOAnnual Premium$501Monthly Premium$42
State FarmAnnual Premium$645Monthly Premium$54
NationwideAnnual Premium$677Monthly Premium$56
ProgressiveAnnual Premium$722Monthly Premium$60
AllstateAnnual Premium$723Monthly Premium$60
TravelersAnnual Premium$745Monthly Premium$62
FarmersAnnual Premium$826Monthly Premium$69

Cheapest Full Coverage Car Insurance With a Low Down Payment

To get a low down payment on a full coverage policy, consider signing up with:

  • GEICO: $77 per month, $928 per year
  • State Farm: $91 per month, $1,097 per year

The rates mentioned are for a 40-year-old driver with an older Toyota Camry and 100/300/100 coverage limits. To lower your premium, you could opt for 50/100/50 limits, but this comes with the risk of higher out-of-pocket costs in an accident.

If you have excellent credit, a clean driving record and drive less, you're likely to find even more affordable options.

GEICOAnnual Premium$928Monthly Premium$77
State FarmAnnual Premium$1,097Monthly Premium$91
NationwideAnnual Premium$1,192Monthly Premium$99
AllstateAnnual Premium$1,215Monthly Premium$101
ProgressiveAnnual Premium$1,215Monthly Premium$101
TravelersAnnual Premium$1,379Monthly Premium$115
FarmersAnnual Premium$1,383Monthly Premium$115

Cheapest Low Down Payment Car Insurance by State

GEICO dominates the list, offering the lowest rates in most states.

State Farm is the most affordable choice in 5 states, while Erie rounds out the top three, offering the lowest rates in 4 states.

Car insurance rates can vary significantly from state to state. For instance, GEICO offers the cheapest car insurance in both Iowa and Florida, but the cheapest rate in the former is $19 per month, while in the latter, it's $52 monthly.

It's always a good idea to shop around for the most affordable car insurance in your area. And don't worry if you're already in the middle of a policy; you can still switch companies if you find a better deal.

AlabamaCompanyGEICOAnnual Premium$368Monthly Premium$31
AlaskaCompanyGEICOAnnual Premium$453Monthly Premium$38
ArizonaCompanyGEICOAnnual Premium$363Monthly Premium$30
ArkansasCompanyGEICOAnnual Premium$373Monthly Premium$31
CaliforniaCompanyCSAAAnnual Premium$479Monthly Premium$40
ColoradoCompanyGEICOAnnual Premium$347Monthly Premium$29
ConnecticutCompanyGEICOAnnual Premium$420Monthly Premium$35
DelawareCompanyState FarmAnnual Premium$791Monthly Premium$66

Best Low Down Payment Car Insurance

Finding the right car insurance is about balancing cost with quality service. The best car insurance companies excel in both areas, offering not only competitive rates but also a high standard of customer service and a variety of coverage options.

This balance becomes particularly important if you have specific needs, like insuring a new car or adding a teen driver to your policy. In such cases, you'll want a company that offers financial protection and is easy to work with, especially in stressful situations like an accident involving your teen driver.

GEICO
  • Average liability-only premiums: $42 per month
  • Average full coverage premiums: $77 per month

GEICO is a top pick if you're after low rates without sacrificing quality. The company offers some of the lowest premiums around, making it ideal for low down payment insurance. Plus, it offers a variety of discounts that can cut your costs even more. Good drivers and those with safety features can get over 20% off, and military members can snag exclusive discounts, including a 25% emergency deployment break.

While GEICO has had its share of complaints, according to the National Association of Insurance Commissioners (NAIC), it shines in customer satisfaction and coverage options. It's even ranked as the top insurer in the New England region and the best usage-based insurer by J.D. Power. So, GEICO remains a strong choice for a mix of affordability and quality.

State Farm
  • Average liability-only premiums: $42 per month
  • Average full coverage premiums: $77 per month

State Farm is worth considering if you're in the market for affordable insurance. MoneyGeek found that State Farm offers the cheapest liability-only car insurance and the cheapest full coverage car insurance for high-risk drivers. State Farm has been recognized by J.D. Power for offering the best purchase experience for three consecutive years.

While State Farm has slightly more customer complaints than GEICO, according to the NAIC, its strong service ratings make it a compelling option. J.D. Power also ranks it alongside GEICO as a top provider for usage-based insurance.

How to Get Low Down Payments on Car Insurance

To secure a low down payment on car insurance, consider comparing multiple quotes, opting for a higher deductible and reducing your coverage. Improving your credit score and maintaining a clean driving record can also lead to lower premiums, while choosing the right payment scheme can offer additional savings.

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    Shop around

    Shopping for low down payment car insurance is essentially the same as looking for the cheapest car insurance. Give yourself ample time before your current policy ends or before you get your new car to make an informed choice. Aim to compare at least three quotes with identical coverage levels to find the most affordable option.

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    Choose a high deductible

    Opting for a higher deductible can significantly lower your premims, and therefore your down payment. Just remember that in the event of a claim, you'll need to pay more out of pocket.

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    Lower your coverage

    If you're willing to take on a bit more risk, consider reducing your coverage. For instance, you might opt for the cheapest liability-only car insurance instead of full coverage. This can result in a lower down payment, but be aware of the potential for higher costs later if you get into an accident.

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    Choose lower policy limits

    Similar to lowering your coverage, choosing lower policy limits can also reduce your down payment. However, this comes with the trade-off of less financial protection in case of an accident.

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    Work towards an excellent credit score

    Your credit score can impact your insurance rates. A higher score can lead to lower premiums, so it's worth putting in the effort to improve your credit.

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    Be a good and safe driver

    Maintaining a clean driving record can make you eligible for good driver discounts, which can lower both your down payment and ongoing premiums.

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    Choose your payment scheme wisely

    How you choose to pay can affect your overall costs. While paying monthly might be easier on your wallet now, it could cost more in the long run. Some insurers offer discounts for automatic payments, and those who pay in full can often save more.

FAQ About Low Down Payment Car Insurance

If you have questions about low down payment car insurance, you're in the right place. Below, we've answered some of the most frequently asked questions to help you make an informed decision.

Which car insurance company offers the cheapest low down payment car insurance?
What is a car insurance down payment?
Why is my insurance asking for a down payment?
Is there insurance that doesn’t require a down payment?
Are car insurance down payments refundable?
Is it cheaper to pay car insurance every six months or monthly?

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.


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