Instant Auto Insurance No Down Payment

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Instant Auto Insurance No Down Payment

The idea of getting instant auto insurance no down payment seems appealing to many drivers. It feels like the consumer is getting something for free and paying a cheaper rate for coverage. Let’s face it; most people don’t like paying their auto insurance bills and want the best rate possible with the lowest down payment. In this article, we will go into detail about instant car insurance with no deposit requirements when you buy auto insurance coverage. 

Is Instant Auto Insurance No Down Payment Available? 

For those interested in “Buy now Pay Later Car Insurance” options, the simple answer to that is yes and no. No deposit car insurance plans are only available in a few states, and only several carriers offer them. Getting instant auto insurance with nothing down doesn’t mean getting free coverage. While a provider might waive the deposit amount, you will still have to make a payment for your policy to become effective. 

With no deposit policies, your first monthly installment payment will be considered your down payment. Some people understand it as “car insurance first month free.” For example, if you need collision coverage for your sedan that costs $1,200 per year, you might qualify for a zero down policy if you have a good driver profile. While you don’t need to pay a deposit, you would need to make the first month’s payment of $100 for the policy to become active. Many drivers just won’t qualify for instant car insurance with no deposit because of their risk profile. 

instant car insurance with no deposit

There’s No Such Thing as Free Car Insurance 

For years there’s been a mistaken belief that you can get free car insurance for a month or even two months. The reality is that’s totally false. Insurers will only cover a driver after they have made a payment. There’s no way of getting around it. For a policy to become effective, you must first make a payment. For qualified drivers, they may be offered deals like $20 down auto insurance. This is a deposit amount that almost anyone can afford.  

The premium amount you are charged, in addition to the deposit amount at the beginning of your policy, depends on your risk profile. In short, riskier motorists will pay higher premiums and larger deposit amounts. This includes inexperienced or young drivers and those who have multiple infractions on their record. Also, the type of vehicle you have and the coverage you need can result in higher down payments. 

For higher-risk motorists, deposit amounts are often 30% of the overall premium cost. On a $2,500 full coverage policy, this can amount to $750 just for the down payment. More expensive vehicles will not only cost more to insure but require a larger down payment. 

Who Qualifies for Instant Auto Insurance No Down Payment? 

To further increase your chance of getting covered with the lowest down payment, or instant car insurance with no deposit, you need to have a low-risk profile. The less chance you have of getting into a wreck and filing a claim, the more likely you are to qualify for zero down auto insurance.  

  • Be a Safe Driver with No Tickets on Your Record 
  • Over the Age of 25 and Under the Age of 75
  • Drive a Used Vehicle that’s Cheap to Insure (Four Doors and Four Cylinders have the lowest rates) 
  • Have a Good Credit Score above 700
  • Drive Less than 800 a Month
  • Own a Home
  • Married

The providers’ job is to calculate the risk you pose as a driver and then charge you premiums and deposit requirements accordingly. This is why not every driver will qualify for a low deposit or no down payment coverage. To check rates for the coverage you need, start by entering your zip code and fill out an online quote application. 

Most people look at their auto insurance bills like they look at their tax bills. It’s a necessary expense, and there’s just no way of getting around it. Many consumers on a tight budget opt for the cheapest car insurance possible with the lowest deposit. This is especially true in a tough economic environment. If someone is in between jobs or has a short-term cash shortage, getting instant auto insurance with nothing down can be the only way to afford coverage. 

While these policies create strong demand from drivers, the insurers don’t like to promote them. This is because providers look at clients that want zero down and “bare-bones” policies as money losers. These customers are more often late on their bills, switch carriers frequently, and file more claims. Insurance companies, like any other business, function to make money. They want long-term, profitable customers that have low-risk profiles.   

Automobile insurance companies are in the not so exact science of predicting risk and profitability. The ideal customer is someone who poses the least risk. Data shows that customers who pay a sizable deposit and even prepay their premium in full are more profitable than customers seeking 0 down auto insurance coverage. However, several insurers offer policies that include $0 down car insurance. 

What Insurers Offer $0 Deposit Car Insurance and Where is it Available? 

There are only a handful of insurers offering instant auto insurance no down payment. 

  • Progressive
  • USAA
  • State Farm
  • Kemper
  • Travelers 
  • Allstate
  • Safe Auto 
  • Met Auto  
  • American Family Insurance
  • Nationwide
  • Auto-Owners

So, who has the cheapest rates? In our study, we found USAA insurance to have the most affordable premiums. A safe driver with good credit can get instant car insurance with no deposit and monthly payments of $38 for state minimum liability insurance in Florida. It’s important to mention that USAA Insurance is only available to military members are their families. To get a free quote, start by entering your zip code.  

no down payment insurance companies

Only seven states offer instant auto insurance with nothing down. If you don’t live in one of these states, there’s still a chance you can qualify for $20 down auto insurance. That’s really cheap and less than a full tank of gasoline.  

  • Washington
  • Arizona
  • California
  • Georgia
  • Oklahoma
  • Florida
  • New York  

Deposits and Monthly Payments 

Here is an example of a twelve-month collision policy, which costs $1,200. If you qualify for instant auto insurance no down payment, you will still need to make the first installment payment for your policy to become effective.  

Down Payment Amount

Monthly Installments Payments


$100 Per Month  

10% or $120


20% or $240


30% or $360


As you can see, you will have to pay your total premium amount in the long-run, whether you choose a zero-deposit policy or opt for a 30% down payment. The main benefit of instant auto insurance with no deposit is getting legally covered with the smallest out-of-pocket expense possible. This is great for those in a short-term financial hardship like someone between jobs. 

If you pay your premium in full, you can get a discount, usually around 2% of the overall premium. By choosing this route, it’s one less bill you need to worry about each month. If you decide at some point to cancel your coverage, you can get a refund on the remaining months of the policy, usually within two weeks or less.  

compare auto insurance to avoid mistakes

Shopping for Instant Auto Insurance No Down Payment

As you’ve probably already guessed, the best place to start your search for the cheapest car insurance with low deposits is online. No down payment Car Insurance companies are offering online discounts and special incentives that you just can’t get anywhere else. At sites like Good to Go Auto Insurance, you can compare ten or more quotes in about five minutes. This includes regional and national carriers. 

Searching for instant car insurance with no deposit has never been easier. Just enter your zip code and fill out an application. It only takes about five minutes. Get started now and see how easy it is to lower your auto insurance premiums today.