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Last updated: April 21, 2025Cheapest No-Down-Payment Car Insurance in 2025
Get the most bang for your buck with the least amount of money upfront.
Best for Bundling
Best for High-Risk Drivers
Best for Low-Mileage Drivers
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All legitimate car insurers require some form of payment before your policy goes into effect. You can technically get car insurance with no down payment (meaning a significant amount upfront) or a low down payment, but you will still need to pay an initial deposit, typically equivalent to your first month’s bill. Not all providers offer this flexibility, so we’ve researched dozens of carriers to find the five most affordable options.
If you’re on a tight budget, we’ve reviewed the best auto insurance companies for low-income drivers and the best liability-only insurance options. And if you’re looking to buy a car with low credit, check out our best auto loans for bad credit and learn more about how credit scores impact auto insurance.
What is no-down-payment car insurance?
No-down-payment auto insurance is a policy that allows you to start your coverage without making an initial upfront payment, instead spreading the premium cost over monthly installments. It’s important to remember that a “down payment” for car insurance isn’t an additional cost; it’s built into your overall rate.
Our Top Picks for the Best and Cheapest No-Down-Payment Car Insurance
- State Farm – Best for Bundling
State Farm offers low premiums and a plethora of discounts. Plus, if you drive safely and bundle, you’ll save even more. - Direct Auto – Best for High-Risk Drivers
Direct Auto specializes in coverage for high-risk drivers, including drivers with a low credit score. - Nationwide – Best for Low-Mileage Drivers
Nationwide has low average rates as well as a pay-per-mile, usage-based program called SmartMiles. The less you drive each month, the less you’ll pay for car insurance.
How much does a car insurance down payment cost?
The initial down payment of the full premium commonly ranges between 8 and 33 percent. This means whatever you pay as a down payment will be deducted from your future payments. If you lower your initial down payment, your monthly, quarterly, or bi-annual premiums will increase.
How to Find Cheap Car Insurance With a Low Deposit
The best providers for low-down-payment insurance will offer flexible payment options. For example, they will allow you to choose a low down payment and spread payments for the rest of the policy over several months. You can also work with an agent to pick the coverage options that fit into our budget.
When looking for the cheapest down payment for your policy, consider the following strategies:
- Compare car insurance quotes. Terms and conditions of auto insurance coverage vary from state to state, so be sure to talk to agents, compare quotes, and identify the best payments and lowest down payment structures for your state.
- Inquire about your down payment options. Ask your agent about paying a down payment for the first 30 or 45 days’ worth of premiums. You may be able to secure a 30-day payment, which is typically the lowest down payment you can make.
- Choose your payment method wisely. Ask if you can set up automatic electronic fund transfers to reduce or eliminate service fees associated with credit cards. Some payment methods come with associated fees, so evaluating your payment options may cut costs on your down payment.
- Ask about discounts. It might seem simple, but check to see which auto insurance discounts you qualify for. For example, you may get a discount and minimize your down payment if you pay your premium upfront.
Best Auto Insurance With No Down Payment
- 1.
Best for Bundling: State Farm
- 2.
Best for High-Risk Drivers: Direct Auto
- 3.
Best for Low-Mileage Drivers: Nationwide
- 4.
Best for a Clean Record : Allstate
- 5.
Best for Customizable Payment Options: GEICO
Comparison of the Best Auto Insurance with No Down Payment
| Provider | Payment options | Usage-based or low mileage discounts | Full coverage average | Minimum coverage average | Review |
|---|---|---|---|---|---|
| State Farm | Monthly | Low mileage, telematics | $2,167 | $674 | State Farm review |
| Nationwide | Monthly or paid-in-full | Pay-per-mile, telematics | $1,808 ($1,044 for pay-per-mile) | $718 | Nationwide review |
| Direct Auto | Monthly or paid-in-full | Telematics | $2,452 | $988 | Direct Auto review |
| Allstate | Monthly or paid-in-full | Pay-per-mile (limited availability), telematics | $2,605 | $840 | Allstate review |
| GEICO | 2, 3, 4, 5, or 6 installments or paid-in-full | Telematics | $1,731 | $517 | GEICO review |
Detailed List of the Best Auto Insurance With No Down Payment
1. Best for Bundling - State Farm
What We Like Most:
- Multiple discounts for safe driving, including one specifically for young drivers
- Local agents
- Flexible payment
Founded in 1922, State Farm is one of the largest and most popular auto insurance companies. The company offers a wide range of insurance discounts and coverage options, and it’s especially cost-effective if you bundle policies like home, business, and auto insurance.
Who It's Best For- Customers with other State Farm policies
- Those who prefer personalized service from agents
- Safe drivers
Who It's Not Best For
Drivers with poor credit- People in Massachusetts or Rhode Island (where coverage isn’t available)
Flexible Payment Options
Unlike many auto insurers, State Farm’s default payment method is individual monthly car insurance payments, making it a great option for those who want a low upfront bill. On top of that, the company allows you to choose your own payment due date. Finally, State Farm simplifies the payment process for customers with multiple policies. Rather than paying multiple bills throughout the month, you can pay a single bill for all of your State Farm policies.
TIP:
The lowest insurance rate you can get is for your state’s legal minimum liability coverage. Make sure you check how much insurance you need to stay on the road (only New Hampshire doesn’t require insurance).
Bundling Discounts
State Farm offers savings of up to $1,273 if you combine your home and auto policies. You can also combine your condo, renters, life, or second automobile policies for similar savings. Bundling also saves you time by providing you with the convenience of managing and paying your bills from the same online portal or mobile app account.
Accident-Free Discount
State Farm offers accident-free savings if you are insured and drive without incident for three years.
2. Best for High-Risk Drivers - Direct Auto
What We Like Most:
- Can pay in cash locally
- Low rates for high-risk drivers
- Choose your own down payment
Direct Auto is one of the newer (and smaller) insurance companies on our list. It specializes in harder-to-find insurance options and offers discounts for high-risk drivers. Of course, high-risk drivers typically pay more for auto insurance, so keep that in mind when you compare rates. Discounts for active-duty military members, homeowners, and prior coverage can help offset the increased premiums.
Who It's Best For- High-risk drivers, including those with an SR-22
- People who want to pay in cash
- Customers who want specialty coverages, such as coverage for classic cars or for travel to Mexico
- Drivers in Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Michigan, Mississippi, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington
Who It's Not Best For- Drivers in most states (as coverage is only available in 16 states)
- Rideshare drivers (as Direct Auto doesn’t offer rideshare coverage)
Coverage for High-Risk Drivers
Direct Auto doesn’t just offer insurance to high-risk drivers; covering them is one of the core missions of the company. Direct Auto works with its customers to build affordable policies as well as to use discounts to lower premiums as much as possible. It also accepts cash payments at many of its store locations, which offers another layer of flexibility.
Many Opportunities to Save
Direct Auto has an impressive list of available discounts. Discounts are available for safe drivers, good students, and senior citizens. You can reduce your premium and earn a Direct Auto discount by:
- Joining the DynamicDrive program
- Taking a driver education course
- Having multiple vehicles on your policy
- Owning a vehicle with certain safety features
- Having multiple policies with Direct Auto
- Being a homeowner
- Switching from another insurer
- Setting up automatic payments
- Paying in full
- Agreeing to paperless billing
Flexible Bill Payments
Direct Auto offers very flexible payment options to help customers stay on top of their bills.
- Drivers can select what day of the month they would prefer to make their payment.
- You can also choose to pay using one of several installment plans if you can’t make the full payment upfront.
- If you decide to use installments, you can pay what you want upfront, which will then determine what the rest of your payments will be.
3. Best for Low-Mileage Drivers - Nationwide
What We Like Most:
- Usage-based auto insurance program
- Option to bundle auto with home, renters, or boat insurance
- Affordable rates for drivers with low credit
Nationwide’s usage-based, pay-per-mile auto insurance program, called SmartMiles, is great for people who don’t drive often. Nationwide will track your driving each month and calculate your cost based on how much you drive. The fewer miles you drive each month, the lower your premium will be. Add flexible payment options to a low monthly premium, and Nationwide is a great option if you’re looking for low-down-payment car insurance.
Who It's Best For- Low-mileage drivers
- Customers who own 2018+ Fords and Lincolns, as they can direct connect to SmartMiles
- Good drivers
- Drivers with poor credit
Who It's Not Best For- Drivers with a DUI
- Drivers who live in a state where SmartMiles is not available: Alaska, Hawaii, Louisiana, North Carolina, New York, and Oklahoma
Perks for Low-Mileage Drivers
If you don’t drive many miles, consider Nationwide’s pay-per-mile insurance, SmartMiles, which offers a discount for low-mileage drivers. This perk may be especially attractive if you’re a remote worker whose car sits unused often, or if your family has multiple vehicles and you don’t use all of them on a daily basis. It can also be a good option for retirees and stay-at-home parents.
Unique Bundling Options
Like most other insurers, Nationwide offers a discount when you bundle your policies. However, this company’s options are somewhat unique. You can earn a discount when you combine the following policy types:
- Auto + home
- Auto + renters
- Motorcycle + renters
- Auto + home + life
- Auto + boat
- Multi-vehicle auto
Flexible Payment Options
If you want flexibility in your insurance payments, Nationwide might be right for you. As with the other companies on our list, Nationwide allows customers to pay their premium monthly, meaning you can bring your monthly cost down with discounts and minimize your upfront cost.
4. Best for a Clean Record - Allstate
Allstate is one of the largest insurance providers in the country. It offers a wide range of coverage options, including coverage for motor homes, RVs, and classic cars. Flexible payment options and wide coverage options place Allstate near the top of our list for the best no-down-payment auto insurance.
Who It's Best For- Customers who want discounts for bundled policies, safe driving, car safety devices, and more
- Families with teen drivers
- Drivers looking for classic car coverage or a Mexico insurance endorsement
Who It's Not Best For- Customers with multiple cars to insure, as Allstate does not have a multi-car discount
- Hybrid or electric vehicle owners
Perks for Teen Drivers
If your family has a teen driver, Allstate could be the right insurance company for you. Allstate advertises policies for teen drivers specifically, so it’s easy for parents to add their children to their policy when they start driving. The provider also offers several ways to save with student and teen discounts.
- TeenSMART discount: TeenSMART is a training program that can help improve your teen’s driving, reduce your teen’s risk of at-fault accidents, and reduce your premiums.
- Smart Student discount: Allstate’s Smart Student discount allows you to save on your car insurance if your teen has a GPA of 2.7 or higher.
- Student-away-from-home discount: Once your teen goes off to college, you can save even more, since the company offers a discount when your teen attends a school at least 100 miles from where they garage their car.
Excellent Savings Opportunities
Allstate offers a variety of discounts to help policyholders save more on their premiums, including the following:
- Anti-lock brakes
- Anti-theft device to prevent auto theft
- Automatic payments
- Bundling with home or renters insurance
- New car
- On-time payments
- Paperless billing
- Safe driving
- Signing your policy at least one week before it becomes effective
Coverage Options
Allstate has a variety of coverage options. It offers the standard coverages you would expect of any insurance company, such as liability, collision and comprehensive insurance, and uninsured motorist coverage. On top of that, it offers unique coverages you won’t find with many other companies. Those coverages include classic car insurance and car insurance for travel to Mexico.
Allstate also offers accident forgiveness. Accidents can happen to even the safest drivers, so the supplemental accident forgiveness protection ensures your premium won’t go up, even after one at-fault accident.
5. Best for Customizable Payment Options - GEICO
What We Like Most:
- Low average rates
- Wide variety of payment options
- Military discounts
GEICO is another major insurer in the U.S. and is known for having some of the lowest prices on average. It even has low rates for drivers with a speeding ticket, at-fault accident, or low credit. It operates in all 50 states and has a wide variety of discounts that policyholders can take advantage of. For those looking for flexible payment options, GEICO offers several installment plans to choose from.
Who It's Best For- Drivers who are looking for the cheapest rates
- Drivers with low credit
- Military drivers
Who It's Not Best For- People with a DUI on their record
- Drivers looking for gap coverage
Affordable coverage for Bad Credit
Having poor credit can have a significant impact on your auto insurance rates — drivers with poor credit pay an average of 41 percent more than drivers with good credit. GEICO has some of the cheapest average rates for drivers with low credit at 26 percent below the national average.
Installment Plans
While you can receive a discount by paying your premium upfront in full, GEICO offers more flexible payment options than most insurers. Depending on your budget and preferences, you may choose the following installment plans:
- Two installments with 50 percent upfront and 50 percent two months later
- Three installments with 40 percent upfront and 30 percent one month and two months later
- Four installments with 25 percent upfront and three 25 percent payments one, two, and three months later
- Five installments with 25 percent upfront and subsequent 18.75 percent payments each month for the 4 months after the effective date (new policies only)
- Five installments with autopay with 20 percent upfront and subsequent equal payments for four months
- Six installments (for renewal policies only) with 16.66% of the total premium due one month before the effective date of the policy and five additional payments of 16.67% each month for the next five months
- Six installments with autopay with six equal payments of 16.67 percent of the premium
Military Discounts
GEICO is one of the few insurance providers that offers a discount for military members. Active duty or retired service members can save 15 percent on their premium. GEICO also has an emergency deployment discount of 25 percent as well as a discount for members of certain military-affiliated organizations.
Frequently Asked Questions
What is a car insurance down payment?
A car insurance down payment is usually a percentage of your total car insurance premium that gets calculated into your monthly cost. As opposed to a flat fee or surcharge, you will have to pay this amount as part of your monthly premium. Insurers may require a larger amount down for customers without good credit.
Is car insurance cheaper if you pay upfront?
Whether or not car insurance is cheaper when you pay upfront depends on your insurance company. Many insurers, including Allstate, Direct Auto, and GEICO, offer discounts when you pay your full premium upfront rather than in individual monthly payments. If paying for a policy upfront means you won’t have money saved in case of an emergency, it’s usually best to pay in installments.
Why do some car insurance companies require a down payment?
A car insurance company may require a down payment as a way of reducing its own risk. If companies offered car insurance without requiring you to pay anything upfront, they would run the risk of having to pay out a claim without you ever paying any premiums.
Can I pay half my car insurance upfront?
In many cases, companies allow two payment options for car insurance: one upfront payment or individual monthly payments. You may be able to pay half of your premium upfront instead of the entire amount with companies like GEICO, but you may not be eligible for a discount.
Methodology
We took the following into account when determining the best auto insurance companies for no or low downpayment:
- Price (40%): We analyze average premiums for full and minimum coverage for good drivers with good credit, as well as various driver profiles, including those with DUIs, accidents, or low credit. We also consider available discounts, and flexibility of payment options. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
- Comprehensive and collision: $500 deductible
- Claims Handling (25%): A good claims handling process from an auto insurer is prompt, transparent, and efficient, with clear communication throughout, fair evaluation of damages, and timely payment or resolution. We assess claims practices through sources like the CRASH Network Insurer Report Card and J.D. Power’s Claims Satisfaction Report, and financial strength from sources like AM Best and S&P Ratings. Real-life customer experiences are included when available.
- Customer Experience (25%): We evaluate the ease of the customer journey, from getting a quote and purchasing a policy to making changes or accessing documents. We consider the availability and quality of both online and agent interactions, as well as the functionality of the company’s website and mobile app. Our sources include J.D. Power studies, the NAIC complaint index, BBB ratings, and app store reviews.
- Coverage Options (10%): We review each company’s coverage offerings and value providers with options beyond the state required minimums, like accident forgiveness, gap coverage, rideshare coverage, and more.
Read more about our ratings and methodology.
Senior Writer & Editor
A seasoned journalist and content strategist with over 10 years of editorial experience in digital media, Aliza Vigderman has written and edited hundreds of articles on the site, covering everything from plan coverages to discounts to state laws. Previously, she was a senior editor and industry analyst at the home and digital security website Security.org, previously called Security Baron. She has also contributed to The Huffington Post, SquareFoot, and Degreed. Aliza studied journalism at Brandeis University.
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