Cheap No Down Payment Car Insurance

Auto insurance providers require some form of payment to activate a policy, but some may offer car insurance that allows policyholders to pay lower upfront costs. You only need to settle the first month's payment to get coverage. You’ll be charged monthly premiums after that.

GEICO provides the cheapest car insurance with no down payment at $501 per year on average. That said, it’s best to shop around and compare car insurance rates, as actual prices may vary depending on your state and driver profile.

Generally, car insurance providers require some form of payment before activating a policy. If affordability is one of the main factors you consider when shopping for a policy, seeking out the cheapest car insurance companies can help you find the lowest upfront costs.

The best car insurance may vary per person because of different driver profiles and circumstances. If you’re looking for a policy that allows you to pay monthly premiums instead of a lump sum, no down payment car insurance may be a good option for you. However, you still need to make an initial payment.

If an agent offers an insurance policy without asking for any sort of payment, it’s likely a fraudulent agent and a car insurance scam. Help protect yourself and avoid falling victim to such scams by comparing quotes from recognized providers. Should you encounter a fraudulent agent, report the incident to the National Insurance Crime Bureau.

Car insurance with no down payment is a misnomer. Insurance providers require an initial payment to start a policy. This first payment can be for a full year, for several months or for one month. No down payment car insurance simply makes the first payment more affordable as it only requires the first month’s premium to activate coverage.

Even so, paying for several months at once is generally cheaper in the long run. Companies may charge lower premiums or offer car insurance discounts. Additionally, it helps prevent missing monthly payments or a lapse in coverage. That said, it requires you to pay a large amount in a lump sum, which can make budgeting a bit more challenging.

On the other hand, monthly premium payments can be a beneficial option for car insurance for low-income drivers or individuals with limited budgets. Instead of paying in a lump sum, you can split the cost of your auto insurance into more manageable payments. However, this may lead to a higher total per year.

The table below shows how the cost of a GEICO full coverage auto insurance policy may vary depending on the payment option. Monthly payments show the lowest upfront cost, but annual payments include a discount.

Note that these figures are illustrative examples only. The annual payment includes a 5% discount. The rates and discounts are also based on averages. GEICO may provide a different quote for a user.

Based on MoneyGeek data, the top three companies for cheap full coverage car insurance with no down payment are:

• GEICO: $928 per year
• State Farm: $1,097 per year
• USAA: $816 per year

Although USAA has the cheapest average rate, the company only offers its policies to active-duty military members, veterans and qualified family members.

Full coverage car insurance covers different situations. There’s no official definition of a full coverage policy, but it typically is a combination of liability, comprehensive and collision insurance. Thus, it offers the best financial protection in the event of an accident.

These rates are for a full coverage policy, including 50/100/50 coverage limits. That means the policyholder can get up to $50,000 for bodily injury liability per person, $100,000 for bodily injury liability per accident and $50,000 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. The most affordable full coverage insurance policy for you will be 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:

• GEICO: $501 per year
• State Farm: $645 per year
• USAA: $405 per year

USAA has the cheapest average rate, but it’s only available to individuals with a military association.

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.

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 shows 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.

When looking for the cheapest no down payment car insurance, it’s best to look at the cheapest rates for the minimum coverage requirement in your state.

Use the table below to see the cheapest provider per state. Click on your state to learn more about the providers offering cheap car insurance in your area.

Although affordability is key when finding the right insurance company, it shouldn’t be your only consideration. The best insurer offers the right coverage options, provides good customer service and has financial stability.

MoneyGeek ranked auto insurance providers using a rating system to determine the best no down payment car insurance providers for a state minimum car insurance policy. Scores were calculated using affordability, financial stability and claim satisfaction ratings from leading sources, including AM Best and J.D. Power.

Car insurance can be expensive, but finding the right policy can help you get affordable premiums. Taking extra steps can help you further reduce your car insurance costs.

• Apply for discounts: Many insurance companies offer discounts, which allow policyholders to lower their car insurance expenses. These may include discounts for practicing safe driving, being a good student, insuring multiple vehicles and installing anti-theft devices. For available discounts in your location, visit insurance company websites or contact an agent.
• Bundle your insurance: Bundling insurance policies can lead to additional savings. Many insurance companies offer discounts or lower premium rates to policyholders who purchase more than one type of policy.
  The most common type is a home and auto insurance bundle, which combines the said policies with the same insurance company. Compare bundling offers from multiple providers. Not only will this help you find the best home and auto bundle. It’ll also determine whether bundling is right for you.
• Safe driving discounts: Your driving record can affect the cost of your auto insurance. Generally, drivers with speeding tickets or other violations on record have higher premium rates. Maintaining a clean driving record gives you access to more affordable rates. You may also enroll in safe driving courses or defensive driving programs to be eligible for certain insurance discounts.
• Improve your credit score: Insurance companies usually consider credit scores when calculating car insurance rates. Credit scores show how risky a driver is. Typically, individuals who are careful with their credit scores are seen to be more careful when driving. Thus, making them less risky to insure.

These tips can help reduce your insurance costs. However, it’s still important to get personalized quotes for a more accurate cost comparison.

Shopping around for car insurance every year will also help you find the best offer for your driver profile, especially if your credit score has improved.

We have answered some questions you may have thought of concerning cheap no down payment car insurance.