How to Get the Lowest Down Payment Car Insurance

If you're looking for the lowest down payment car insurance, it's important to know that car insurance companies always require some payment to start a policy. The lowest down payment car insurance is one with overall low rates and the smallest amount due to start the policy. Quotes for the lowest down payment car insurance are around $50 a month for basic coverage, while more comprehensive coverage can get closer to $200 a month.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: Jun 2, 2022

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Here's What You Need to Know

  • Most car insurance requires a down payment to start the policy
  • There are some insurance companies that offer no down payment car insurance, but you will still have to pay the first month’s rates
  • You can lower your rates by being a responsible driver

While you may be hoping to find the lowest down payment car insurance, it could cost you more in the long run. Cheap car insurance with no down payment isn’t easy to find. If you are looking to save money, car insurance discounts are a better bet than no down payment coverage. Finding a car insurance plan that costs as low as $20 a month is like having a $20 down payment car insurance plan.

It’s confusing, but we can help. Read on to learn more about down payments and car insurance.

Do you want to find quotes for the lowest down payment car insurance? Enter your ZIP code into our free quote tool to see what you could pay at

How to Get the Lowest Down Payment Car Insurance

If you’re looking for car insurance that doesn’t require a down payment to begin service, it is possible. There are car insurance companies that don’t require a down payment.

That doesn’t mean you won’t have to pay anything, though. Car insurance will almost always require a premium paid upfront. After that, you can either pay monthly or pay the entire premium for your term. Either way, you’ll need to pay for the coverage before it begins.

This also goes for buy now pay later car insurance, as that would mean the insurer is at a huge chance for a loss if they insure your car before you prove you can pay.

How can you get cheap car insurance with no down payment?

Wondering how to get car insurance with no down payment? If you’re hoping to get car insurance that doesn’t require any money upfront, you’ll be looking for a while. Unfortunately, an insurer will be less likely to insure you if you can’t provide even the first month’s payment.

While the insurer won’t give you a policy without payment, there are things you can do to lower how much you’ll have to pay. Some of the most beneficial tips to lowering rates include:

  • Decreasing risk
  • Driving a safer car
  • Improving credit history

Anything you can do to show an insurer that you will be less of a risk to insure will go a long way towards lowering your rates.

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Why don’t insurance companies offer car insurance with no down payment?

While not the same as a down payment, car insurance companies require upfront payment of a premium. A down payment works as partial payment for the purchase of expensive goods. Car insurance premiums are for the current coverage of your vehicle.

In other words, you’re not paying off a car that the dealer can repossess if you stop paying. A car insurance policy works as you pay for the coverage per term or each month.

However, some companies do charge more than the first month’s rate upfront. This is often referred to as a down payment. However, it is really an advance payment on your coverage.

Can I get $20 down payment car insurance?

Very cheap car insurance can cost you around $20 to $50 a month for basic coverage. This low payment could qualify as these policies as $50 or $20 down payment car insurance.

However, this includes getting a car insurance policy without any coverage beyond liability and could leave you without a vehicle in the future.

Instead of immediately going for the cheapest available option, you should consider how car insurance can benefit you. For example, if you’re driving a newer car that you can’t easily replace, it might be wise to get full coverage.

Make sure you understand the difference between liability and full coverage car insurance so that you purchase the correct coverage for your needs.

How can I save money on auto insurance?

To pay the lowest amount you can, you’ll need to show your insurer that you aren’t a huge risk. If the insurance company thinks you have a higher chance of getting into a wreck or defaulting on a policy, you will probably have to pay to cover that additional risk.

It isn’t hopeless if you get placed into a higher-risk category, though. You can still redeem yourself and get lower rates by working to lower the risk you pose to the insurer.

According to the Insurance Information Institute, you can save on your premiums by shopping around, comparing insurance costs, and raising your deductible.

How do auto insurance companies determine rates?

Car insurance companies determine their rates by examining your life through a process called underwriting. During underwriting, the insurance company will look into your records to determine the risk you pose to an insurer paying out on the policy.

The insurer will look at a variety of factors in your life that could cause issues on the policy, including:

  • Your Vehicle – If your vehicle has a higher statistical chance of getting into a wreck or causing injury, you’ll pay more for that coverage.
  • Type of Policy – The type of policy you chose will also have an impact on premiums, with the insurance costing more for additional coverage.
  • Past Driving Record – If you’ve had any issues with any recent tickets or accidents, you’ll pay more to cover the risk of that happening again.

To lower your car insurance rates, you should ensure that you’re doing everything you can to be safe on the road. Not only will this make your premiums more affordable, but you’ll also be safer.

Can you get the first month free with car insurance?

There is no such thing as free car insurance. You’ll have to pay at least the first month.

If you’re worried about paying for your car insurance up front, you can rest assured knowing that it immediately goes towards your coverage. As soon as you make that payment, you’re insurance and able to drive legally.

Paying into a car insurance policy can be stressful on the wallet, but it’s required by law in most states. There are a lot of ways to save on your car insurance costs. Shop around, make sure you’re getting discounts, and keep your driving record clean.

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Cheap Car Insurance with No Down Payment: The Bottom Line

While it’s difficult to find no deposit car insurance, there are still options to get affordable insurance. If you can lower your risk before you apply for the policy, you can likely get much more affordable rates each payment period.

Get the lowest down payment on your car insurance today by comparing rates. Enter your ZIP code into our free quote tool for car insurance quotes from top companies.



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