No Down Payment Car Insurance Coverage

No down payment coverage can help you save money in the long run, but you may have to meet specific requirements, such as having a particular credit score or owning specific types of cars.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Written by D. Gilson, PhD
Professor & Published Author D. Gilson, PhD

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Mar 5, 2022

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The Highlights

  • No down payment coverage is a type of car insurance that typically only requires the first month’s premium before beginning coverage
  • While it’s hard to estimate no down payment coverage rates, your premiums may be higher than if you make a down payment
  • You must often meet certain requirements to qualify for no down payment coverage, such as having a certain credit score or owning certain types of cars

Car insurance can be expensive, so it’s no wonder that most shoppers want to learn as much as possible about saving money and getting the best rates.

Below, we’ll discuss no down payment coverage and whether it’s effective at saving you money on your car insurance policy.

Before you begin reading, enter your ZIP code into our free quote comparison tool to compare car insurance quotes today.

What is no down payment car insurance?

No down payment car insurance is merely referring to a policy that requires no more than the first month’s premium before coverage starts.

Most of the best insurance companies require some money upfront, sometimes in the form of a premium (monthly, quarterly, annually, etc.) or a lump sum in addition to a premium. Therefore, you should always expect to pay some money before your coverage begins. Especially if you’re beginning your auto insurance policy in the middle of a month. The company may request that you pro-rate your monthly payment, which is sometimes why the first payment is larger.

With this in mind, no down payment coverage doesn’t mean you won’t pay anything, it just means you’ll pay the lowest down payment for auto insurance possible, which is usually equal to the first month’s premium.

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How much does no down payment coverage cost?

It’s difficult to give an exact estimate on what no down payment auto insurance rates may be for you. Factors that can determine your rates include age, gender, location, driving record, and more.

Traditionally, if you make a down payment upon purchasing car insurance, your premiums will be smaller. Therefore, if you choose not to make a down payment, you may pay more on your premiums.

This is similar to someone choosing to make monthly payments versus paying premiums quarterly or annually. While you may save money in the short-term by paying your premium monthly or not making a down payment, over the long-term, you’ll likely be paying more.

Some people prefer not having a down payment, because it’s usually a larger payment upfront, which means they have a higher monthly bill instead. Others might have the ability to make a higher initial payment, so they choose to do so in order to have lower monthly bills.

It’s best to make up a plan before getting your service started, so that you know what you can afford and which option will be better for you. You’ll also need to determine if you’re able to obtain no down payment coverage.

How can I get no down payment coverage?

Getting no down payment coverage may be difficult since there are usually specific requirements that you must meet. For example, you might need a particular credit score or own certain types of cars. Owners of newer cars are less likely to qualify since their vehicles are risky for the insurer.

A driver with a high credit score, clean driving record, and a moderately aged vehicle will see more affordable car insurance and may have better access to no down payment coverage, because they’re less of a risk to the company. However, this doesn’t mean that drivers who don’t fall within those parameters should give up on finding affordable monthly rates.

To start, no down payment coverage is only available in certain states, including Arizona, California, Florida, Georgia, New York, Oklahoma, and Washington. Which means it’s not accessible to everyone immediately.

Plus, there are plenty of coverage options out there, which means any driver has a higher likelihood of finding affordable coverage. If having no down payment appeals to you, you will need to research to find companies that offer no down payment auto insurance. You can also contact an agent, who may find policy options that companies don’t advertise.

What’s the bottom line?

When searching for no down payment coverage, it’s important to set up what expenses you’ll be putting into your coverage. Having a firm understanding of what you’re willing to pay will help you find an auto insurer within your budget.

Getting an auto policy through a well-known company doesn’t always mean you’ll pay the lowest rates, which is why it’s suggested to look around first. Obtaining an affordable rate from multiple reputable companies, big and small, can lead you to the type of upfront costs you’re capable of paying. If you find an insurance company that boasts no down payment coverage, make sure there is some sort of benefit to choosing them for your coverage. The recommendation is to find more than one, so that you can compare quotes.

Comparison shopping, as mentioned above, is a great way to see what options exist. Plus, you’ll be able to get a better read on the companies you’re researching. Even if they boast no down payment coverage, you’ll want to make sure they’re a reputable insurer with solid customer service.

If you need help finding affordable no down payment car insurance, you can always look at an online quote, or multiple quotes even. That way you can find a solid, reputable insurance company. Enter your ZIP code into our free quote comparison tool below.

Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

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