No Down Payment Car Insurance
No Down Payment Car Insurance
Does Car Insurance With No Down Payment Exist?
Technically, there’s no such thing as no-down-payment auto or “free car insurance.” All legitimate car insurance policies require you to pay money upfront. If an insurer offers “low-down-payment insurance,” the down payment is the first month’s premium. In most cases, the deposit is a percentage of the total premium, not a separate fee.
Important Points of No Down Payment Car Insurance
The “down payment” for car insurance is typically just a percentage of the total premium and equal to a monthly or bi-monthly payment.
You can save on car insurance costs by comparing quotes from multiple providers, improving your credit score, and dropping unnecessary coverage.
Auto insurers offer discounts to help you secure the cheapest coverage rates.
Why Do Car Insurance Companies Need a Down Payment?
A down payment is the money required to start your auto insurance policy — technically, your payment for your first month, six months, or year of insurance coverage. Once you make that initial payment, you’re covered under the policy you purchased. If you haven’t paid your auto coverage, you won’t be able to file a right and take a payout from your insurer. Car insurance providers take on risk when insuring, so by requiring a down payment, they make up for some of that risk immediately.
How Much Are Auto Insurance Down Payments?
Down payments vary based on state regulations, your purchase policy, and the insurance company’s guidelines. Higher-risk drivers, those with poor credit or who need to file SR-22s, may have to make higher down payments. The type of vehicle you’re insuring may also dictate your down payment’s size.
What Are My Car Insurance Payment Options?
You’ll typically pay your car insurance premium in installments with a payment plan. You may pay more in the long run if you pay in monthly installments. Paying in six-month or annual installments might save you money, particularly if your insurer offers a discount for paying in full.
When it comes to making payments, you have the following options:
- Mailing a check
- Paying online through the provider’s website
- Paying through a mobile app
- Setting up automatic payments
How Can I Save Money on Car Insurance?
There are some things you can do to pay lower car insurance rates. In the sections below, we’ve outlined some steps to help you find affordable car insurance.
Get Quotes From the Low-priced Car Insurance Companies
- To find the best rates, compare car insurancequotes from several providers. The average estimates below are founded on a single 35-year-old driver with a spotless driving record and good credit who drives a 2023 Toyota Camry.
Cheapest Liability Insurance Providers
- Our estimates show Union Mutual and American National Insurance offer the cheapest liability insurancepolicies on average. Union Mutual coverage is only available for residents of select New England states.
- Your rates can vary significantly from these prices depending on your age, driving history, credit score, and more.
| Insurance Provider | Average Monthly Rate | Average Annual Rate |
| Union Mutual | $16 | $190 |
| American National Insurance | $18 | $219 |
| Farmers Mutual of Nebraska | $21 | $257 |
| Rural Mutual Insurance | $23 | $276 |
| Secura Insurance Group | $24 | $292 |
| MMG Insurance | $29 | $348 |
| Farm Bureau Financial Services | $31 | $368 |
| Tennessee Farmers Insurance Companies | $32 | $389 |
| IMT Insurance | $33 | $394 |
Cheapest Full-Coverage Insurance Providers
We found that Union Mutual and Pekin Insurance offer the lowest average annual premiums for full-coverage car insurance. While Union Mutual is only available in New England states, many providers in the chart below offer affordable full coverage insurance in broader service areas:
| Insurance Provider | Average Monthly Rate | Average Annual Rate |
| Union Mutual | $66 | $787 |
| American National Insurance | $95 | $1,137 |
| Secura Insurance Group | $98 | $1,174 |
| Virginia Farm Bureau | $109 | $1,309 |
| MMG Insurance | $110 | $1,322 |
| Texas Farm Bureau Insurance | $119 | $1,427 |
| Farm Bureau Financial Services | $121 | $1,454 |
| Tennessee Farmers Insurance Companies | $126 | $1,511 |
| Farmers Mutual of Nebraska | $126 | $1,511 |
| Rural Mutual Insurance | $126 | $1,517 |
