All car insurance policies require you to make some payment before coverage begins. There is no down payment without car insurance. However, some policy types offer lower initial payments than others. Many car insurance companies allow you to pay monthly. This may be easier to budget than annual or semi-annual payments. However, if you go that route, you may also need to pay an installment fee. If you’re not driving too much, choosing pay-per-mile miles can help reduce your car insurance costs.
Where can I buy cheap car insurance without deposit?
Auto insurance is a legal agreement between you and your insurance company. Paying the premium is the end of the contract. It is the insurance company’s responsibility to meet and pay the eligible claims. To use insurance, you must pay first. You can’t worry about signing your documents, getting insurance, or paying later.
That said, some policies may require less money than others. Some insurers offer cheaper average rates than others, and even advertise themselves as more budget-friendly than others. Based on an analysis of average car insurance rates, car owners, GEICO, USAA, AAA, and travelers offer some of the most affordable rates as of March 2025.
Additionally, some insurers offer the option to reduce payments in the first month of the policy and spread the remaining payments to the lifespan of the remaining policy. Still, you will need to pay some type of payment upfront.
Getting quotes from airlines that offer cheap average rates may be a good way to fit your budget with a premium, but it is important to note that car insurance premiums are highly personalized. Also, consider asking about your monthly payment plan, rather than a policy that requires you to pay a lump sum payment once or twice a year.
How much does car insurance cost without a down payment?
Though it is not a down payment, the cost of revitalizing your car insurance will depend on premiums over the entire six- or 12-month policy period. Typically you have the option to pay a full premium for your policy period in semi-annual, quarterly, or monthly installments. If you pay your car insurance in installments, if the insurance company adds an installment fee, you will ultimately pay it. You may also be missing out on the potential pay discounts offered by many airlines.
The table below shows, on average, how much you need to pay to secure your car policy from some of the top cheap insurance companies. These are average, but these charges can be used as comparison points to know if you are receiving a competitive estimate based on whether you have chosen to pay a yearly or monthly premium. For reference, drivers pay an average of around $799 per year for the lowest range of car insurance contracts.
| Insurance Company | Yearly worth. Compensation “down payment” amount* | Monthly portion. Compensation “down payment” amount** |
|---|---|---|
| Car Owner | $495 | $41 |
| Geico | $580 | $48 |
| USAA | $594 | $50 |
| aaa | $631 | $53 |
| Travelers | $657 | $55 |
*Average annual premiums do not include paid discounts (if available).
**Average monthly premiums do not include installment fees.
Things to keep in mind when not taking out down payment insurance
If you’re looking for cheap down paymentless car insurance, there are a few things to keep in mind. These tips can help you save money on car insurance.
Paying monthly costs more in the long run
Paying car insurance monthly may be better in your budget, but it can cost more money in the long run. This is because most insurance companies charge installments for each payment. So, for example, if you have a six-month policy with a carrier charging $3 per month installment fee, you’ll end up paying an additional $18 for the insurance policy period. This adds to the total cost of car insurance.
Each insurance company has its own installment fees that can range from $1 to $5 or more per installment. If you are planning on shopping for car insurance quotes and making monthly payments, ask your insurance agent so that you can determine if your monthly payments are worthy of you. Plus, if you choose to pay more in advance, you can earn a paid discount. This could help make your policy more affordable.
Buy insurance before purchasing a car
If you have a tight budget and need cheap down payment car insurance, buying insurance before purchasing a car may help you stick to your financial goals. That’s because the make and model of your car is one factor that determines your car insurance rate.
With an older car you can buy completely, you need to make sure it’s the right financial move for you, but you may be able to completely throw away coverage and get cheaper minimum coverage insurance. Meanwhile, some newer cars have advanced safety features that can be cheaper than insured. Comparing insurance estimates from multiple companies can help you decide which car to buy and find the cheapest premium for your car insurance coverage you need. Use the comparison website to find online car insurance to get a quicker quote.
How to save money with car insurance
Like all insurance, your car insurance company is based on the amounts charged for your perceived risk. If your insurance company thinks you are likely to get involved in an accident or file a claim for another reason, you tend to make more claims to compensate for that risk. This means saving money with car insurance usually means reducing the risk of getting involved in an accident and limiting the amount that the insurance company must pay if you file a claim. Here are a few things that may help you save on car insurance.
- Drive safely: One of the best ways to save money with car insurance is to build a good driving record. The longer you can go without getting tickets or getting involved in an accident, the better your budget will be. If you’re a great driver, enrolling in an insurance company and telematics program can also save you money. These programs allow you to track your driving in real time and earn discounts to drive safely.
- Think about your car: The car you drive also plays a big role. Newer, more expensive cars cost more insurance than older cars that are less valuable. If insurance costs are prohibitive, you can consider changing your vehicle. Reducing the coverage amount also reduces your premiums. Please follow state law for the minimum insurance amount and maintain sufficient coverage to protect yourself financially.
- Improve your credit score: Another way to reduce premiums (in most states) is to improve your credit score. All states except California, Hawaii, Michigan and Massachusetts allow insurers to use credit-based insurance scores when determining premiums by banning or restricting practices. According to the data, people with a higher credit score can reduce their bills, so improving their credit score can significantly reduce their premiums.
- Please contact us for discounts: Ask your insurance company about potential eligible discounts, as discounts can usually be stacked for maximum savings. In many cases, you can save money by bundling multiple insurance contracts, taking defensive driving classes, or qualifying for other discounts.
FAQ
Methodology
Using Quadrant Information Services, Bankrate analyzes all ZIP codes and carriers in all 50 states March 2025 rates, with Washington DC rates being weighted based on population density for each geographical region. The cited fees are based on 40-year-old male and female drivers with clean driving records, good credits and the following full coverage limits:
- $100,000 per person physical injury liability
- $300,000 for each accident
- Liability for property damages of $50,000 per accident
- Uninsured driver physical injury for $100,000 per person
- Uninsured driver’s physical injury for $300,000 per accident
- $500 collision deduction possible
- Comprehensive $500 deduction
To determine the minimum coverage limit, bank rates used minimum coverage to meet the requirements of each state. Our base profile driver owns a 2023 Toyota Camry, commutes five days a week and drives 12,000 miles a year.
These are sample rates and should be used for comparison purposes only.
