Full coverage car insurance no down payment

I know it can be incredibly frustrating when you need a policy but can’t afford a down payment. The cost to start a car insurance policy can come with quite the sticker shock.

If you have a good credit score and clean driving record, insurance companies may consider offering you a policy without a down payment. Since insurance is risk-based, the less of a risk you are, the better your terms and conditions will be.

Before looking into insurance companies, you should know what your budget is. While you may not have to pay a down payment, starting a policy will require your first month’s payment, so you’ll want to know what you can afford ahead of time.

Once you know that, you can request car insurance quotes online or go to Jerry. The free Jerry app gathers affordable quotes from up to 50 top insurance providers, saving customers an average of $879 a year!

If you find a policy that fits your needs and is affordable, consider how you pay for your insurance. Most companies will offer a discount for payment by a bank account instead of a credit card, helping to save you even more money.

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

If you own a car, you know car-related expenses can add up quickly. In addition to the purchase price of a vehicle, car owners regularly have to pay for maintenance, registration and insurance.

In most states, drivers need to purchase a car insurance policy that meets at least state minimum coverage requirements, but it’s a better financial decision overall to purchase more than the minimum.

The national average cost for full coverage car insurance is $1,569 per year, according to a Forbes Advisor analysis of car insurance rates. At that price, the cost of a car insurance policy can make a big dent in the average driver’s budget.

If you can’t afford to pay for a full six or 12 months of auto insurance up front, and want to get cheap car insurance with no down payment, here’s what you should know.

Can I Get Cheap Car Insurance With No Down Payment?

When shopping for car insurance, you may come across companies that advertise no down payment car insurance policies. A policy with no deposit may seem like a cheap way to get insurance, but the truth is you can’t get car insurance without making a payment first.

All car insurance companies will require a payment before your policy is “in-force,” meaning coverage is in effect. To some, this may be considered a down payment or a deposit, but in reality, it’s simply the payment required to put a new car insurance policy into effect.

While you will have to pay some money to have car insurance in place, you can generally opt for monthly payments to help fit insurance into your budget. If you do this, your insurer may tack on installment fees. You can usually lower these fees by allowing EFT payments.

How Do Car Insurance Payments Work?

You can’t get around paying some amount of money to make your car insurance policy active.

For example, let’s say you want to purchase a full coverage car insurance policy with an annual premium of $1,200 per year. If you can’t afford to pay the full $1,200 immediately, you likely have the option to pay in monthly installments.

Other typical payment options are quarterly, semi-annually and in full.

Tips for Finding a Cheaper Car Insurance

You may not be able to find cheap car insurance with no down payment, but here are ways to lower your car insurance payments as much as possible

Shop around for quotes from multiple insurers

One of the best ways to find cheap car insurance is to shop around and compare quotes from at least three companies.

Each car insurance company uses different factors to calculate a rate, including your driving record, vehicle make and model, your ZIP code, age and credit.

As a result, rates often vary, sometimes drastically, from one company to the next. The cheapest company for one driver may be completely different for another.

Related: Compare car insurance quotes

Ask about discounts

As you shop for coverage, make sure the quotes you are comparing reflect all the car insurance discounts you’re eligible for. There are more than a dozen common discounts, including those that provide price breaks for buying multiple policies from one company, being claims-free for a certain period of time or having a vehicle with certain safety features.

Adjust your deductible, coverage types or coverage amounts

You can get the lowest car insurance rate possible by buying minimal coverage, as long as you’re aware of the risk of being underinsured. For example, you could buy only the minimum auto insurance required by your state. The trade-off is that you are still liable for others’ bills if you cause an accident.

If you have collision and comprehensive coverage, you can also consider increasing your car insurance deductible. A higher deductible will lower the cost of your premium. Keep in mind that a higher deductible means you’ll get a lower claims payout if you make a collision or comprehensive claim.

Related: How much car insurance do I need?

Consider pay-per-mile or usage-based car insurance

Many car insurance companies now offer alternatives to traditional car insurance, and some drivers may find them to be more affordable options.

Pay-per-mile car insurance rates are based on the number of miles you drive.

Usage-based car insurance bases rates partly on your driving habits—including speed, acceleration, braking patterns and miles driven—to determine your risk. Safe drivers could see lower car insurance costs.

Both options typically require drivers to use a telematics device that tracks their driving, which may not be right for everyone. If you’re considering either type of plan, talk to your insurance agent to see if it’s a good fit for your needs.

Give up the sports car

Sports cars are generally among the most expensive cars to insure. For example, the Audi R8, Dodge Charger and Toyota GR86, are among the most expensive vehicles for insurance, based on a Forbes Advisor analysis of rates.

Best Car Insurance Companies 2022

With so many choices for car insurance companies, it can be hard to know where to start to find the right car insurance. We've evaluated insurers to find the best car insurance companies, so you don't have to.