How to Get
Affordable Car Insurance with no Down Payment
What is no down payment car insurance?If you’re in the market for new car insurance, you have a few options available to you. You can cough up a sizable chunk of change and pay the full premium in total, often yielding a discount for paying upfront. Or, you can go with option number two — a popular choice for many drivers on a budget — and pay monthly. Opting to pay a monthly car insurance premium can still cost you in the form of an initial down payment as a sign of good faith.
How much is this first down payment? And what if you can’t afford it?
A typical car insurance down payment for a monthly premium could equal to two months of coverage. Auto insurance down payments may depend on individual policies and states, but they are often estimated at anywhere from 20-33% of a six-month premium total.
Here’s where you come to a rock and a hard place: If you’ve chosen to pay monthly for car insurance because you can’t afford to pay a six-month premium upfront, you’ll likely have a hard time coming up with a 30% down payment.This leads us to door number three. There is a possibility of securing no down payment car insurance — cutting out an upfront cash commitment altogether — though this auto insurance deal is not available in all states or from all providers.
But here’s what you will get when you find a company that offers no down payment car insuranceYour first monthly payment may be used as the policy down payment, providing the illusion that you are paying zero money down. A car insurance provider that waives your down payment in this manner minimizes your out-of-pocket costs.
Before you sign on the dotted line, there could be a catch.
Where Can I Get Car Insurance Without a Down Payment?
Since no down payment car insurance is not the industry standard, you may not be able to find this type of auto insurance just anywhere.
CarsDirect confirms that no down payment insurance may be available in states like :
- New York
- California is the leading state to offer no down payment car insurance with the largest number of providers.
Auto insurance providers with no down payment policies may include:Many companies offer nationwide car insurance coverage in all states. You can also purchase no down payment car insurance online, directly through the insurance provider or a third-party website.
How Much Does No Down Payment Car Insurance Cost?As you probably know by now after shopping and comparing car insurance online, your individual insurance premium will depend on a number of variables
What Impacts Your Car Insurance Rate?
9%Insurance Carrier & Policy Options
25%Age, Marital Status, and Gender
35%Driving Record & Claim History
What Impacts Your Car Insurance Rate?
Did You Know
- You can challenge your driving record?
- Older drivers aren‘t penalized for age?
- The car you choose makes a big difference
Just like any other car insurance policy, your no down payment quote will be comprised of several insurance components that can impact price, including but not limited to liability coverage, collision coverage, and uninsured/underinsured motorist coverage. Liability insurance is the coverage required in all 50 states and is mandatory. Other coverage options, including add-ons like collision coverage, will offer extra protection and can increase your base premium further.The best way to approach getting a good deal on no down payment car insurance is just as you would any other policy. We’ll cover how to keep your no down payment insurance affordable in the next section.
7 Quick Tips for No Down Payment Auto Insurance
If there’s one thing to know about signing up for no down payment insurance, it’s that comparison-shopping can be your best friend. There’s no way to tell which auto insurance provider will offer a premium without a down payment, until you request a quote.Don’t even think about signing up for a policy until you have gotten a minimum of three quotes from competitive market providers to determine the lowest available rate without a down payment.
As you shop, you can put these helpful tips into practice to
find the cheapest no down payment insurance
- Drive safeObvious, but true — working to improve or preserve your driving record can keep monthly car insurance dirt cheap.
- Drive lessHave you ever considered carpooling, using public transportation, or even working from home? Now is the time to put these grand ideas into action, considering that fewer monthly miles on your vehicle means a cheaper monthly insurance rate.
- Play with your deductibleThis may prove to be a problem if you don’t have enough extra cash to pay for an insurance down payment, let alone a deductible. However, increasing your deductible (the amount you will pay in the event of an at-fault accident) can inversely lower your policy rate.
- Ask for discountsWhen it comes to car insurance, you never know until you ask. Extra policy discounts may be available for military, students, driver’s education, nurses, multi car households, firefighters and more.
- Talk to your bossYour company may offer bulk car insurance discounts when a policy is purchased through a company-sanctioned provider.
- Ask for automated paymentsIt’s possible that your no down payment insurance could cost more than an annual premium paid in full. Ask your new provider to set you up with automatic monthly billing to automatically bring your monthly premium down even more.
- Take advantage of the extrasIf you can’t do anything to get your no down payment insurance quote to drop, at the very least, look for a company that offers some freebies. For example, many companies provide an in-car device to track driving and potentially lower rates; some insurers build “extras” into their standard car insurance policies, including coverage for transportation expenses after an accident, locksmith services, and pet injuries.