Want to get car insurance with no deposit, or zero down auto insurance? Many companies offer such coverage and figure rates for coverage based on a monthly payment system. There are many reliable car insurance providers that don’t require an initial deposit, so just keep checking different companies and see who offers the best price.
Meeting the needs of a struggling population, companies such as Toyota USA offer free insurance packages to buy with little to no deposit. However, it’s important to know that even though there is no deposit to pay, it most likely won’t be a completely free policy.
If your want insurance now and want to pay for it monthly, here is a look at how no deposit car insurance works and what the pros and cons are of these popular policies.
How does No Deposit Car Insurance work?
No deposit auto insurance can be purchased with a small initial monthly payment, which lets drivers decide on annual, semi-annual, or quarterly payments. As well as the option of purchasing policies through monthly payment plans.
Beware of companies or brokers offering “car insurance for the first month absolutely FREE” as most companies will have hidden fine print.
Instead, insurance premiums cover your car only for the first month without requiring an up-front charge.
Monthly auto insurance premiums may be the most affordable option for you, but expensive car insurance’s eventual total cost can be discounted by paying upfront. If you can afford to pay 3-months or 12-months in advance, compare the costs between your car insurance and monthly premiums.
What’s the Cost of Car Insurance With No Deposit?
To compare premiums at GEICO, we included the price difference between a driver that pays for 6 months upfront and the cost of insurance with monthly payments:
Policies from different insurance companies can have many different rates and fees. For example, policies might cost differently for a person by coverage, deductible, geographical location, or personal information. Fees for buying the policy or taking it up vary between different companies. For example, if the monthly cost of that policy is $400 and you have to pay an extra $150 at the time of purchase, then it will take six months before you can cancel your policy.
How much you would save with different insurance companies depends on your driving history, age, gender, zip code and other factors that affect rates. However, the average discount from an insurance premium paid upfront is around 5% to 10%.
Insurance companies that don’t require a deposit
Most car insurance companies prefer their customers to pay with a down payment, instead of monthly installments, even if the company offers monthly plans. Insurers want to mitigate some of the risk of insuring you by guaranteeing cash up front. Ask your agent if you can qualify for monthly payments.
Drivers of newer cars or with bad credit are going to have a hard time finding affordable insurance, while drivers of older cars or with good credit may qualify for zero-down car insurance.
The best way to get the most affordable auto insurance quotes is by comparing rates from multiple companies. After all, the only way to know you are getting the lowest insurance rates is to complete an online quote. Just enter your zip code and receive a list of the best companies with instant, easy access rates online.
States where car insurance can be purchased with no deposit
Unfortunately, some states don’t offer car insurance without a down payment. Here’s a list of the states and the car insurances available with no deposit.
- Arizona
- California
- Florida
- Georgia
- New York
- Oklahoma
- Washington
Find cheap car insurance for your situation by comparing rates and plans from different companies. Get free quote today.
