If you’re looking for car insurance and can’t afford a large down payment, you might be 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 a deposit 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 either 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, while insurance companies base the cost of your monthly premium on your risk level. Drivers who present a high risk to the insurer are less likely to get the option of paying monthly. If you are allowed to make monthly payments 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 low-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

Can Insurance Companies Offer No Down Payment Car Insurance?

Be wary of car insurance companies that claim you can obtain insurance without an initial payment. Remember: no down payment car insurance only means that you won’t necessarily pay more than your first month’s bill to secure coverage. Although it costs more to make larger payments upfront, doing so can lower your total bill.

While all reputable car insurance companies require at least some form of a down payment, you can do some research to find . Learn how to so you can find the most cost-effective plan that works for you.

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. 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

How much 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 companies do not require a down payment?

Every reputable car 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 term—usually 6 or 12 months—will 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.