Updated: July 18, 2024
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Insurers always require an upfront payment to start your policy. But if you can’t afford the whole amount, you have the option to pay your premium in monthly installments. You just need to cover the first month's premium to get on the road.
MoneyGeek found that GEICO offers the cheapest low down payment car insurance, averaging $45 per month for a liability-only policy.
CheapestNo Down PaymentCar InsuranceTable of Contents
Why Trust MoneyGeek?
MoneyGeek analyzed companies offering cheap car insurance using data from Quadrant Information Services and state insurance departments to find the most affordable options.
These rates reflect the cheapest car insurance quotes nationally and by state as of May 2024.
Based on MoneyGeek data, the top three companies for cheap full coverage car insurance with no down payment are:
Full coverage car insurance covers many different situations. Full coverage typically refers to a combination of liability, comprehensive and collision insurance. It offers the best financial protection in the event of an accident.
| Travelers | Annual Premium$1,105 | Monthly Premium$92 |
| Nationwide | Annual Premium$1,111 | Monthly Premium$93 |
| GEICO | Annual Premium$1,180 | Monthly Premium$98 |
| State Farm | Annual Premium$1,216 | Monthly Premium$101 |
| Progressive | Annual Premium$1,282 | Monthly Premium$107 |
| Allstate | Annual Premium$1,453 | Monthly Premium$121 |
| Farmers | Annual Premium$1,496 | Monthly Premium$125 |
These rates are for a full coverage policy with 100/300/100 coverage limits. That means the policyholder can get up to $100,000 for bodily injury liability per person, $300,000 for bodily injury liability per accident and $100,000 for property damage liability.
The deductible used in gathering quotes was $1,000. This refers to the amount the policyholder owes before the insurance kicks in.
Keep in mind that the table shows average rates for a sample driver profile and insurance policy. Your most affordable full coverage insurance policy will vary based on individualized factors.
Shop around and compare rates from multiple providers to find cheap full coverage car insurance suitable for your needs.
The top options for drivers looking for cheap liability-only no down payment car insurance are:
Liability-only auto insurance offers the most basic protection against possible financial losses. It also has the least coverage, which is why it’s typically the cheapest type of car insurance. Liability-only coverage covers bodily injuries and property damage to another party due to an accident where the policyholder is at fault.
| GEICO | Annual Premium$534 | Monthly Premium$45 |
| State Farm | Annual Premium$536 | Monthly Premium$45 |
| Progressive | Annual Premium$544 | Monthly Premium$45 |
| Travelers | Annual Premium$548 | Monthly Premium$46 |
| Nationwide | Annual Premium$575 | Monthly Premium$48 |
| Farmers | Annual Premium$708 | Monthly Premium$59 |
| Allstate | Annual Premium$791 | Monthly Premium$66 |
These rates are based on national averages for state mandatory minimum coverage requirements.
States have different minimum coverage limits that drivers need to meet. For instance, most states require liability coverage. Some may also include personal insurance protection or uninsured/underinsured motorist insurance.
For most drivers, liability-only coverage is the cheapest option. However, the cheapest liability-only car insurance may vary per person. The table displays national averages for state-mandated minimum coverage, but this may differ from your actual rates. Review quotes in your state to find the most affordable liability-only insurance for you.
Monthly payments offer flexibility, but be mindful of potential car insurance discounts if you pay your full premium upfront. If you can't afford a large down payment, consider using a credit card for the initial cost and paying off that balance quickly to avoid interest.
The cheapest low down payment car insurance companies vary significantly between states. Depending on location, the same driver seeking the same coverage could get vastly different quotes.
For full coverage insurance, California offers the most affordable deal, with an annual premium of just $427 from CSAA — that's about $36 each month. On the other hand, Florida is the most expensive state, with drivers paying as much as $1,360 annually or around $113 monthly from Travelers.
When it comes to state minimum car insurance coverage, California has the cheapest option at $131 annually or $11 a month from CSAA. In contrast, New York has the highest state minimum cost, with an annual premium of $646 annually, or $54 a month, from Kemper.
The table below illustrates the average premiums offered by each state's cheapest car insurance company, with variable coverage levels.
| Alabama | CompanyCincinnati Insurance | Annual Premium$796 | Monthly Premium$66 |
| Alaska | CompanyAllstate | Annual Premium$994 | Monthly Premium$83 |
| Arizona | CompanyRoot Insurance Company | Annual Premium$722 | Monthly Premium$60 |
| Arkansas | CompanySouthern Farm Bureau | Annual Premium$771 | Monthly Premium$64 |
| California | CompanyCSAA | Annual Premium$427 | Monthly Premium$36 |
| Colorado | CompanyAmerican National P&C | Annual Premium$721 | Monthly Premium$60 |
| Connecticut | CompanyGEICO | Annual Premium$948 | Monthly Premium$79 |
| Delaware | CompanyTravelers | Annual Premium$865 | Monthly Premium$72 |
Car insurance policies always require an upfront payment. To activate your coverage, you'll either need to pay in full or cover the first 30 to 45 days.
Stick to basic coverage
Lower overall premiums typically mean a lower down payment
Pay in monthly installments
Pay monthly for lower upfront costs, but larger down payments mean smaller monthly bills.
Automatic Payment Discount
Setting up automatic payments may earn you a car insurance discount, lowering your monthly cost.
Although affordability is key to finding the right insurance company, it shouldn’t be your only consideration. The best insurer offers the right coverage options, good customer service and financial stability.
The best car insurance company isn't one-size-fits-all. Insurers assess factors unique to you, so two drivers could get different quotes for the same policy. Collecting and comparing quotes from car insurance companies can save you hundreds of dollars.
State Farm leads with strong Affordability and Claims Satisfaction scores, making it a top choice for car insurance with a low down payment. It offers Roadside Assistance and other valuable coverages like New Car Replacement and Accident Forgiveness, ensuring a comprehensive policy for many drivers. Despite lacking some rare coverage options, its high MoneyGeek scores highlight its overall quality as an insurance provider, making State Farm a robust choice for a wide range of insurance needs.
| State Farm | MG Best Score (out of 100)79 | Claims Satisfaction15 | Customer Satisfaction19 | Affordability33 | Financial Stability5 | Coverage Score7 | Annual Premium$1,216 |
| Nationwide | MG Best Score (out of 100)78 | Claims Satisfaction15 | Customer Satisfaction16 | Affordability34 | Financial Stability4 | Coverage Score9 | Annual Premium$1,111 |
| Travelers | MG Best Score (out of 100)77 | Claims Satisfaction15 | Customer Satisfaction15 | Affordability34 | Financial Stability5 | Coverage Score9 | Annual Premium$1,105 |
| GEICO | MG Best Score (out of 100)74 | Claims Satisfaction12 | Customer Satisfaction16 | Affordability34 | Financial Stability5 | Coverage Score7 | Annual Premium$1,180 |
| Progressive | MG Best Score (out of 100)72 | Claims Satisfaction12 | Customer Satisfaction15 | Affordability33 | Financial Stability4 | Coverage Score9 | Annual Premium$1,282 |
| Allstate | MG Best Score (out of 100)71 | Claims Satisfaction12 | Customer Satisfaction15 | Affordability31 | Financial Stability4 | Coverage Score9 | Annual Premium$1,453 |
| Farmers | MG Best Score (out of 100)70 | Claims Satisfaction12 | Customer Satisfaction17 | Affordability31 | Financial Stability3 | Coverage Score7 | Annual Premium$1,496 |
Many car insurance companies allow interested individuals to purchase a policy online, making buying easier than ever. Below is a simple guide on looking for the best cheap car insurance.
The first thing you need to do is to evaluate your needs as a driver. These play a huge role in determining the right coverage, which will also impact your insurance rate.
How much car insurance you need depends on various factors. The state you live in has a minimum coverage requirement. The value of your car and your financial situation are also important considerations.
The best car insurance companies offer a balance of quality and cost. That’s why checking available discounts, customer service reviews and average insurance rates is important.
The best option for you varies depending on the type of driver you are because of differences in needs and circumstances. Consider how your driving profile impacts the type of coverage you need.
Insurance providers have different rates even for the same driver profile. The best way to find your best option is to compare quotes. Ideally, you should get personalized quotes from at least three auto insurance companies.
You should also compare offers, specifically coverage levels and relevant discounts. Review the fine print to prevent any issues and unexpected costs.
Once you decide which company offers the best no down payment car insurance, you’ll have to make an initial payment to activate your policy. If you’re looking for the cheapest upfront cost, paying monthly premiums may be a good option.
Insurance companies require a downpayment to protect themselves. By getting some payment upfront, they lower their risk of taking you on as a customer. If you cancel your policy after a short time, they still have some money to cover their costs.
Finding "no down payment" car insurance isn't realistic, but there are smart ways to make that initial payment much more manageable. However, there are strategies to manage or minimize these initial payments and reduce your car insurance costs.
Compare Quotes
Start by gathering quotes from at least three insurers. Some companies may offer low down payment options or might offer seasonal promotions with reduced initial costs.
Lower Your Coverage Limits
Consider lowering your coverage limits or opting for higher deductibles to reduce the initial payment required. If your car is over 10 years old, you might end up paying too much for full coverage car insurance.
Improve Your Credit Score
Many insurers use credit scores to determine payment options and premiums. A higher credit score can qualify you for better terms, including lower initial payments.
Evaluate the Total Cost
While focusing on the down payment, consider the policy's total annual cost. A lower down payment might result in higher monthly payments or a higher overall annual cost.
Negotiate With Insurers
Don't hesitate to negotiate with insurers. If you have a good driving record and solid credit, you might be able to secure better terms.
Use Online Comparison Tools
Utilize online comparison tools to compare different insurers' down payments and overall costs. This can simplify the decision-making process.
Consider a Credit Card
If you can pay off the balance quickly to avoid accruing interest, putting your initial premium on a credit card could delay the payment by a month.
Bundle Your Insurance Policies
Many insurance companies offer discounts or lower premium rates to policyholders who purchase more than one type of policy. Home and auto bundles or insuring all family cars under one policy is often rewarded with discounts.
Car insurance is about more than just satisfying a legal requirement. Its primary purpose is to protect you financially in case of an accident. Even with a low down payment, the cheapest car insurance policy might not offer the coverage you need. Prioritize finding a balance between affordability and protection that fits your budget now and in the long run.
We answer some common questions that may come up when searching for no down payment car insurance.
All auto insurance companies need some sort of payment to start coverage. This down payment serves as security to reduce risk and validate a person’s payment method. That said, individuals looking for the cheapest car insurance can find a policy with a low upfront cost.
No deposit car insurance and no down payment car insurance are the same thing. Despite the name, you still need to make an initial payment. But instead of paying the full insurance cost in a lump sum, you pay in increments, resulting in a lower upfront cost.
Policyholders can decide how they’re going to make insurance payments. You can generally pay insurance premiums monthly, semi-annually or annually.
Based on MoneyGeek’s analysis, GEICO offers the cheapest no down payment car insurance for a liability-only policy, with an average annual rate of $534.
Although insurance companies require some form of upfront payment, you can still get low down payment car insurance today. Many companies have online tools that make it easier to research, compare rates and request quotes. Some insurance providers also offer instant same-day car insurance.
About Mark Fitzpatrick
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.
