Cheapest No-Down-Payment Car Insurance in 2025

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Updated: January 28, 2025

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Key Takeaways

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Travelers offers the cheapest full coverage car insurance with no down payment nationally, averaging $1,105 annually or $92 monthly.

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GEICO provides the most affordable minimum coverage car insurance with no down payment. Rates start at $534 annually or $45 monthly.

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Insurers require an upfront payment, typically covering one month of insurance, which isn’t exactly a deposit but a partial payment for your policy.

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What Is the Cheapest No-Down-Payment Car Insurance?

GEICO offers the cheapest low down payment car insurance, averaging $45 monthly for minimum coverage.

Insurance companies require an upfront payment because they take on risk when onboarding a customer. They're unwilling to insure a driver without an initial premium.

However, you have many affordable car insurance options that fit your needs. Check out our buying guide to learn how to lower your rates and which companies offer the lowest upfront payments. Also, see our methodology for how we made these choices.

Cheapest Full Coverage Car Insurance With No Down Payment

Travelers, Nationwide and GEICO are the top companies for cheap full coverage car insurance with no down payment. Travelers offers full coverage at $1,105 per year ($92 monthly), Nationwide at $1,111 ($93 monthly) and GEICO at $1,180 ($98 monthly).

Travelers$1,105$92
Nationwide$1,111$93
GEICO$1,180$98
State Farm$1,216$101
Progressive$1,282$107
Allstate$1,453$121
Farmers$1,496$125
Cheapest No-Down-Payment Car Insurance

Cheapest No-Down-Payment Car Insurance

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WHY INSURERS ALWAYS REQUIRE A DOWN PAYMENT

Insurance companies require a downpayment to protect themselves. By collecting some payment upfront, they reduce their risk. If you cancel your policy early, they still have funds to cover their costs.

Cheapest Minimum Coverage Car Insurance With No Down Payment

GEICO, State Farm and Progressive are the top options for drivers looking for cheap minimum coverage car insurance with no down payment. GEICO's rates are about $534/year or $45/month, State Farm at $536/year or $45/month and Progressive at $544/year or $45/month.

GEICO$534$45
State Farm$536$45
Progressive$544$45
Travelers$548$46
Nationwide$575$48
Farmers$708$59
Allstate$791$66
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MONEYGEEK EXPERT TIP

Monthly payments offer flexibility, but you may miss out on car insurance discounts if you pay your full premium upfront. If you can't afford a large down payment, consider using a credit card and paying it off quickly to avoid interest.

Cheapest No-Down-Payment Car Insurance by State

California has the most affordable full coverage insurance, with an annual premium of just $427 from CSAA — about $36 monthly. Florida is the most expensive state, with drivers paying as much as $1,360 annually or around $113 monthly from Travelers.

California also has the cheapest minimum car insurance coverage, at $131 annually or $11 monthly from CSAA. New York has the highest minimum coverage cost, at $646 annually or $54 a month from Kemper.

The table below shows the average premiums from each state's cheapest car insurance company, with various coverage levels:

Data filtered by:Results filtered by:
Select
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
AlabamaCincinnati$796$66
AlaskaAllstate$994$83
ArizonaRoot$722$60
ArkansasSouthern Farm Bureau$771$64
CaliforniaCSAA$427$36
ColoradoAmerican National$721$60
ConnecticutGEICO$948$79
DelawareTravelers$865$72
District of ColumbiaErie$971$81
FloridaTravelers$1,360$113
GeorgiaCOUNTRY Financial$910$76
HawaiiGEICO$601$50
IdahoAmerican National$491$41
IllinoisAmerican Family$723$60
IndianaAuto-Owners$589$49
IowaAuto-Owners$700$58
KansasAmerican Family$888$74
KentuckyAuto-Owners$876$73
LouisianaLouisiana Farm Bureau$980$82
MaineVermont Mutual$609$51
MarylandState Farm$1,191$99
MassachusettsState Farm$483$40
MichiganGEICO$1,016$85
MinnesotaAAA$860$72
MississippiMississippi Farm Bureau$724$60
MissouriTravelers$983$82
MontanaState Farm$561$47
NebraskaAmerican National$488$41
NevadaCOUNTRY Financial$840$70
New HampshireHanover$479$40
New JerseyPlymouth Rock$946$79
New MexicoProgressive$778$65
New YorkKemper$1,121$93
North CarolinaState Farm$517$43
North DakotaAmerican Family$646$54
OhioNationwide$485$40
OklahomaGEICO$885$74
OregonCOUNTRY Financial$965$80
PennsylvaniaNationwide$664$55
Rhode IslandAmica$980$82
South CarolinaAmerican National$536$45
South DakotaAmerican Family$614$51
TennesseeAuto-Owners$728$61
TexasTexas Farm Bureau$760$63
UtahNationwide$725$60
VermontVermont Mutual$538$45
VirginiaVirginia Farm Bureau$743$62
WashingtonPEMCO$793$66
West VirginiaWestfield$1,043$87
WisconsinAAA$462$39
WyomingState Farm$745$62
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WHICH INSURANCE POLICY DOESN’T REQUIRE A DOWN PAYMENT?

Car insurance policies always require an upfront payment. You'll either need to pay in full or cover the first 30 to 45 days to activate your coverage.

Best No-Down-Payment Car Insurance Company

The best car insurance company isn't the same for everyone. Insurers consider factors unique to each driver, so two drivers may get different quotes for the same policy. State Farm is the best no-down-payment car insurance company, with the right coverage options, good customer service and financial stability.

State Farm7915193357$1,216
Nationwide7815163449$1,111
Travelers7715153459$1,105
GEICO7412163457$1,180
Progressive7212153349$1,282
Allstate7112153149$1,453
Farmers7012173137$1,496
Company logo for State Farm
Best OverallState Farm
MoneyGeek Score:
79/ of 100
Overview

State Farm earns strong affordability and claims satisfaction scores, making it a top choice for car insurance with a low down payment. It offers roadside assistance, new car replacement and accident forgiveness. While it lacks some rare coverage options, State Farm's high MoneyGeek score makes it a solid choice for various insurance needs.

Affordable Car Insurance With No Down Payment: Buying Guide

To find the best cheap no-down-payment car insurance for your needs, explore the following sections for guidance on choosing the right policy. This will help you balance coverage and cost based on your situation.

Why Insurers Require a Down Payment

No car insurance company offers the first month of coverage for free. Credible insurers require upfront payment to activate a policy, usually for the first month. If a company offers car insurance without requiring an initial payment, proceed cautiously.

A down payment ensures a concrete agreement between the insurer and the insured. It signals the policyholder's financial commitment to maintaining coverage and reduces the insurer's risk. By receiving payment first, the insurer doesn't extend coverage without securing funds, protecting its financial stability.

How No-Down-Payment Car Insurance Works

All reputable insurance companies start their policy with customers by requiring a first payment. This is to protect them from insurance fraud and high-risk drivers. Here's how it works:

  1. Select your policy type and coverage. You'll need to choose between minimum coverage and full coverage, along with your preferred liability limits and deductibles. Your policy must meet at least the state minimum limits.
  2. Make the first month's payment to activate your policy. This first payment isn't an additional fee on top of your premium but goes toward your policy's total cost.
Payment Structure
Total Policy Cost

Low down payment

If you choose a low down payment plan and your policy costs $720, you'd pay only $60 upfront to get insured and make the same monthly payment for a full year.

Standard policy paid in full

If you pay in full, the $720 no-deposit policy may cost only $684 with the annual payment discount. You'd make a one-time payment of $684 and save $36, with no monthly payments.

How to Buy Car Insurance With No Down Payment

Many car insurance companies let you purchase a policy online, making it easier than ever. Below is a simple guide to finding the best cheap car insurance.

  1. 1

    Understand your coverage needs

    Evaluate your needs as a driver to determine the right coverage, which will also impact your insurance rate. How much car insurance you need depends on your state's minimum coverage requirement, your car's value and your financial situation.

  2. 2

    Research the best providers

    The best car insurance companies offer a balance of quality and cost. Check available discounts, customer service reviews and average rates. The best option for you depends on your driving profile and circumstances. Consider how your needs affect the type of coverage you require.

  3. 3

    Comparison shop

    Insurance providers have different rates, even for the same driver profile. The best way to find the right option is to compare quotes. Get personalized quotes from at least three auto insurance companies. Also, compare coverage levels and relevant discounts. Review the fine print to avoid any issues or unexpected costs.

  4. 4

    Make your first monthly payment

    Once you choose the best no-down-payment car insurance, you'll need to make an initial payment to activate your policy. Paying monthly premiums may be a good option if you want the cheapest upfront cost.

Tips for Affordable Car Insurance With No Down Payment

Finding no-down-payment car insurance isn't realistic, but there are ways to make the initial payment more manageable. Follow these strategies to minimize this payment and reduce your overall car insurance costs:

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    Compare quotes

    Gather quotes from at least three insurers. Some companies may offer low down payment options or seasonal promotions with reduced initial costs.

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    Lower your coverage limits

    Consider lowering your coverage limits with minimum coverage insurance or opting for higher deductibles to reduce the initial payment. If your car is over 10 years old, you might be paying too much for full coverage car insurance.

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    Improve your credit score

    Many insurers use credit scores to determine payment options and premiums. A higher credit score can qualify you for better terms, including lower initial payments.

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    Evaluate the total cost

    While focusing on the down payment, consider the policy's total annual cost. A lower down payment might result in higher monthly or overall annual costs.

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    Opt for higher deductibles

    Raising your collision and comprehensive deductibles from $200 to $500 could save you 15% to 30%, and increasing each deductible to $1,000 could save as much as 40%. Ensure you put aside enough money for the deductible if your car is damaged.

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    Choose a vehicle that's cheap to insure

    Driving a car that's less expensive to insure can reduce your down payment. Vehicles that are cheaper to repair or have better safety ratings typically have lower insurance costs.

    High-performance sports cars and luxury cars are more expensive to insure, while SUVs are usually less expensive. Safety features like adaptive cruise control and lane detection assist can also help lower insurance costs.

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    Negotiate with insurers

    If you have a good driving record and solid credit, you may be able to negotiate better terms.

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    Use online comparison tools

    Online comparison tools can help you compare different insurers' down payments and overall costs, simplifying your decision-making.

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    Consider a credit card

    If you can pay off the balance quickly to avoid accruing interest, putting your initial premium on a credit card could delay the payment by a month.

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    Bundle your insurance policies

    Many insurance companies offer discounts or lower premiums to customers who purchase more than one type of policy. Bundling home and auto policies or insuring all family cars under one policy often qualifies for discounts.

Finding the Right Coverage for You

Car insurance is more than just meeting a legal requirement — it protects you financially in case of an accident. Even with a low down payment, the cheapest policy may not provide the necessary coverage. Focus on balancing affordability and protection that fits your budget and long-term needs.

Explore the articles below to find the most affordable policy based on your profile and needs:

Our car insurance calculator is a quick way to compare rates based on your profile and budget. Enter basic information anonymously to see how rates compare for you.

Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

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Which Companies Offer No-Down-Payment Monthly Payment Plans?

Nationwide, State Farm and GEICO offer the cheapest rates with no down payment for multiple coverage options. They're among the best for customer service, affordability, various discounts and product options. While they require an initial payment, they offer flexible payment options, with partial payments as low as $20 to start the policy.

MoneyGeek researched the three cheapest no-down-payment car insurance providers and found the following:

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MoneyGeek's Top Pick

Nationwide

  1. Nationwide offers low down payment options, helping reduce the initial cost when starting or renewing a policy.
  2. Customers can change their billing date to fit their financial schedule, benefiting those who need to align their payments with paydays or other recurring expenses.
  3. Nationwide offers the SmartRide program, which can lower payments based on driving habits. This isn't a traditional payment plan but helps make payments more affordable over time.
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MoneyGeek's Top Pick

State Farm

  1. State Farm offers a flexible payment plan that sometimes includes lower first-month payments, depending on the specific plan and state regulations.
  2. Instead of a large upfront payment, customers can make a smaller initial payment and spread the remaining balance over time with monthly installments.
  3. State Farm accepts various payment methods — including credit cards, bank transfers and electronic payments — giving customers more flexibility.
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MoneyGeek's Top Pick

GEICO

  1. GEICO offers a low down payment option for new policies. This reduces the initial cost when signing up for coverage.
  2. It allows customers to spread payments across the policy period with monthly or bimonthly installment plans, reducing the immediate financial burden.
  3. Customers can easily manage their payment schedules and make one-time payments through the GEICO Mobile app, offering flexibility for those who want to adjust payment schedules or make additional payments.

Payment Options for No-Down-Payment Car Insurance

No-deposit car insurance means you pay for only the first month of your policy, without a separate deposit. The initial payment can be as low as $20.

Insurance companies offer various payment plans to spread out costs:

  • Annually: Pay the entire premium once a year
  • Semi-annually: Split the payment into two installments per year
  • Quarterly: Pay every three months
  • Monthly: Make payments each month

Be cautious of "no-money-down" promotions, as some payment is usually necessary for immediate coverage.

Cheapest Car Insurance With No Down Payment: Bottom Line

No-down-payment car insurance plans can help you find a cost-effective policy. State Farm, GEICO and Travelers are the best providers for no-down-payment insurance, offering flexible payment plans for drivers seeking coverage while minimizing costs.

Be sure to compare rates before making a decision. Many providers offer discounts, so check for opportunities like going paperless, signing documents online and safe driver discounts to maximize savings.

Car Insurance With No Down Payments: FAQ

We answer some common questions about no-down-payment car insurance.

Why do you have to put a down payment on car insurance?

Can you get insurance with no deposit?

Do you pay car insurance upfront?

What is the most affordable car insurance with no down payment?

Can you get car insurance with no down payment today?

Can I pay half my car insurance premium?

What is pay-as-you-go insurance?

Most Affordable Car Insurance With No Down Payment: Methodology

Data Depth and Overview

MoneyGeek analyzed 2,474,515 quotes from 607 companies across 3,523 ZIP codes to determine the cheapest car insurance premiums for various driver profiles and needs.

Driver Profiles

MoneyGeek created an average driver profile to gather rates from insurers and find the cheapest car insurance for most drivers. This profile includes the following characteristics:

  • 40-year-old male
  • Clean driving record
  • 2012 Toyota Camry LE
  • 12K miles driven annually

To collect data on rates for specific driver characteristics, we modified the average driver profile by geographic location, age, credit score and driving history — such as adding a ticket, a DUI or an accident to the standard driver profile.

Defining Full Coverage

Unless specifically indicated, when MoneyGeek refers to full coverage, it means a policy with:

  • $100,000 in bodily injury liability per person
  • $300,000 in bodily injury liability per accident
  • $100,000 in property damage liability per accident
  • Comprehensive and collision coverage with a $1,000 deductible

Defining Minimum Coverage

Unless specifically indicated, when MoneyGeek refers to minimum coverage, it means a policy with:

  • $100,000 in bodily injury liability per person
  • $300,000 in bodily injury liability per accident
  • $100,000 in property damage liability per accident
  • No comprehensive or collision coverage

How We Ranked the Best Providers for Affordability

MoneyGeek used sources such as AM Best, J.D. Power, the CRASH Network report card and quote data from Quadrant Information Services and state insurance departments to determine the best affordable car insurance providers.

To create a score for each insurer, MoneyGeek used a ranking system with the following weights generating a score out of 100:

  • Financial stability: 5%
  • Customer satisfaction: 25%
  • Claim satisfaction: 20%
  • Coverage offerings: 10%
  • Affordability: 40%

Learn more about MoneyGeek's auto insurance methodology.

About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

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