If you’re looking for car insurance and can’t afford a large down payment, you’re probably intrigued by the promise of insurance that doesn’t require one. However, no down payment car insurance is a little misleading as it technically doesn’t exist. Every reputable car insurance company will require compensation before your policy goes into effect. No down payment car insurance refers to insurance that only requires you to pay a portion of your premium, often equivalent to your first month’s bill, as a down payment. Learn what no down payment car insurance really means and where to find cheap low down payment car insurance.

What Is No Down Payment Car Insurance? 

No down payment car insurance requires you to pay some portion of your total premium before starting your coverage. When you purchase insurance, you’re given the option of paying every month or paying for your whole premium at once. While making monthly payments is cheaper in the short term, you may spend more money over the lifetime of your policy than you would if you paid upfront.

Who Is Eligible for No Down Payment Car Insurance?

Payment plan options and eligibility vary from state to state. Insurance companies base the cost of your monthly premium on your risk level. If you present a high risk to the insurer, they’re less likely to give you the option of paying monthly. If they do and you make a pricey claim, your insurer won’t have the initial down payment to recuperate some of their losses.  

While each insurer determines risk differently, it can be harder to find no down payment insurance if you belong to one of these groups:  

  • Drivers with expensive, new vehicles 
  • Drivers who require SR-22 insurance 
  • Drivers with a poor credit history 
  • Drivers with flawed driving records 
  • Drivers who are considered high-risk 

No Down Payment Car Insurance Companies

While shopping for a potential car insurance policy, be wary of marketing that claims you can obtain insurance without paying anything initially. Remember: no down payment car insurance only means you may not have to pay more than your first month’s bill to secure coverage. In addition, while it costs more to make larger payments upfront, this can lower your total bill.

How to Find Low Down Payment Car Insurance

Car insurance coverage options vary by state, so the easiest way to see what low-down payment options you qualify for is by speaking with an agent. Call us, schedule a call or chat with us today to learn your eligibility depending on your state and the type of coverage you’re looking for. If you’re not already insured with The General, get a free insurance quote in two minutes or less to see how much you can save on a policy.

Frequently Asked Questions About No Down Payment Insurance

What is a down payment for car insurance?

A car insurance down payment is the first insurance payment you make before your policy becomes valid. If you decide to pay month by month, the down payment is typically the minimum amount of your first month’s installment. If you’re paying upfront for the entire year, your down payment will be larger, but your overall annual premium will be lower. 

What insurance company does not require a down payment?

Every reputable insurance company requires some form of payment or deposit before starting coverage. No down payment insurance still requires that you pay some amount of your policy’s premium upfront, and you can’t obtain valid auto insurance without paying anything initially.

Is car insurance cheaper if you pay in full?

Paying your car insurance upfront for the entire termusually 6 or 12 monthswill typically lower the overall cost of your policy. Speak with your agent to see if you qualify for a discount when you pay your car insurance in full.