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No Down Payment Car Insurance

What Is No Down Payment Car Insurance?

Getting excellent car insurance without a down payment is something that many people seek out, but few find. It is not very easy to find this type of car insurance, though it sounds appealing. Most car insurance companies require that customers make a down payment. At first glance, it seems cheaper to not pay one, but that is most often not the case. Most automobile insurance companies want customers that are going to keep their policy for a more extended period of time, rather than cancel it as soon as their vehicle is purchased.

It's also a matter of risk. People who seek out car insurance with no down payment are more likely to cancel their policy after a shorter period. While there is not a significant chance that you will find zero down payment car insurance or low-down-payment car insurance, it is still a good idea to look at why insurance companies use down payments and what your options are.

Why Do Down Payments Exist

Auto insurance companies use down payments for pretty much the same reason they are able to exist as companies. Car insurance, by nature, is designed to predict risk and to prepare for it. Because of this, the best clients for insurance companies are the ones that provide as little risk as possible. Car insurance companies utilize down payments because the statistics they study show that a client who is unwilling to pay a down payment is much more likely just to want secure insurance to avoid things like registration penalties or to meet the requirements of a car dealership. These types of clients may end up costing insurance companies more in the long run.

Also, an insurance provider does a lot of background work in order to stay in business. This can include maintaining knowledge of your full driving report, which costs money. There are other administrative costs, operational costs, and other expenses that continuously cost money.

Most often, the down payment that you paid for car insurance is not an additional premium. Instead, it gets built into the rate you pay for liability insurance, as well the other insurance types you select. A driver's down payment tends to get deducted from future payments that the driver makes. If you pay a more substantial down payment, future payments will cost less. Because of this, it is essential to understand that your down payment is part of your premium in the future. It can be difficult to estimate how much a car insurance company will ask for your down payment, many insurance companies allow customers to choose from a wide range of amounts.

How much are down payments for car insurance?

Down Payment Amount
Monthly Installments


10% or $60

20% or $120

30% or $180

Saving Money On Zero Down Auto Insurance

Down payments are another financial consideration for anyone that is buying automobile insurance. It is something that can affect decisions about which company a person decides to go with. All in all, because of the nature of down payments, most often the company that offers cheap car insurance, along with the best customer service and offerings, is the one to go with. You want the best bang for your buck.

Making Smart Claims

One way that you can save money is by making smart decisions with your claims. If a claim you are looking to make will raise your rates more than the cost of repairs over time, it may not make sense. The amount your insurance increases can depend on the value of the claim. Talking to your insurance agent can help with determining your options when it comes to making a claim. Many times, using your auto insurance is the best choice. Accidents can result in substantial expenses, and those expenses are what auto insurance companies are here to help with. If the costs from damage are larger than the premium increases, you may want to make a claim. Here are some tips to help you determine whether making a claim is your best choice.

  • Get a few estimates for the repair costs.
  • Look at the data about insurance increases, or ask your insurance company.
  • If it will cost you less to pay out of pocket, do that.
  • If it will cost you less to make a claim, in the long run, do that.

Getting The Right Policy

Another way you can save money is by getting the insurance policy that best fits your needs. General Insurance provides an extensive range of plans, with multiple payment options. With our tools and agents helping you, you will get the best plan for your needs. Too little coverage, and you will spend a lot more than you want if a costly situation occurs. On the other side of it, if your car is worth a lot less than what you are covered for, you may be paying too much for your premiums. Let General Insurance assist in finding the best value for your specific needs.

Car Insurance Discounts

Standard insurance companies generally do not advertise policies that do not include down payments. They are risky policies for insurance companies to provide and tend to attract high-risk drivers. There are many other ways to save, from discounts and getting the right policy to your needs to focusing on driving safely and making smart claims.

Discounts that drivers can qualify for include:

  • Good driver discount.
  • Safety devices.
  • Multi-policy discounts.
  • Discounts for paying in full.
  • Multi-vehicle discounts.

Discounts like these and others add up when it comes to savings. Remember, the top way to get the right policy, as well as the best rates, is to talk to a General Insurance agent or get a quote from our website. Simply enter your zip code and get started with free quotes today.

Who Can Buy Car Insurance with No Money Down?

Most automobile insurance policies have the option to pay in either a lump-sum installment, monthly premiums, or the entire policy in advance. Paying a large sum at the start can help people save a lot of money on their current insurance policy, and paying for it all up front can sometimes save people up to 33%. Paying monthly premiums may cost more, but it also provides the maximum amount of flexibility when purchasing a policy. Monthly payments allow people to get automobile insurance coverage for a lower price as far as initial costs, but the policyholder will pay more money over the course of the policy. Not all drivers will be eligible to get car insurance with no down payment; you will likely need to have a good driving record in order to purchase car insurance with no money down.

States Where No Down Payment Car Insurance Is Available

The states that allow people to buy automobile insurance with no money down are few and far between. These states are Arizona, California, Florida, Georgia, New York, Oklahoma, and Washington.

How much are down payments for car insurance?

Car insurance companies risk people getting an insurance policy to prove they have one and then canceling the policy in a short period of time. By being able to commit to a down payment, you are less of a risk to the car insurance company. Down payments for car insurance are not an additional premium; it is something that is built into your rate. The down payment that you make is deducted from future payments. Many insurance companies will provide people purchasing a policy with a range of down payment amounts, and sometimes these amounts depend on the risk rating a driver has. Generally speaking, the down payment is somewhere between 10 and 30% of the entire cost of the policy.


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