Getting car insurance without a deposit is not an easy task. Most companies don’t even offer it. And those who do, very rarely advertise it. This is due to the fact that auto insurance companies want to deal with drivers who are not classified as high risk. And if you are unwilling to pay a deposit on your new insurance policy, consider this high risk.
Also, Paying a deposit is a good decision on your part. When you make a down payment, it is integrated into your plan and you do not have to pay it for your monthly premium. If you want to get lower prices, paying a reasonable deposit is one of the best ways to do just that.
Well, there are reasons you might want to approach this decision. Some of us just need car insurance really quickly and don’t want to have to spend more upfront to get coverage. But there are times when drivers are just trying to please a dealership to drive a car off the parking lot. These are the drivers who at least not look for down payment policies, that is the view of the auto insurance companies.
Of course, it could also be that you are unsure of auto insurance and whether you like it or not that could really be the reason. Since your down payment is really a reduction in your future monthly payment, gamble on liking the company you choose. Hence, it is always good practice too Get quotes from a few different auto insurance companies First, read reviews from other drivers.
Whatever the reason, I wanted to find the best auto insurance companies that offered a no deposit option if this is exactly what you are looking for.
Compare No Down Payment Auto Insurance Quotes
Car insurance without a down payment overview
|Companies||Best for||Average premium
(Monthly price for 25-year-old women who drive 17 Jettas without previous accidents)
|Allstate||Lower borrowers||$ 392|
|District farm||Bad reviews||$ 284.95|
|USAA||Military personnel||Varies (but very competitive)|
It is quite difficult to find a car insurance company that is ready to insure you with no deposit or deposit. However, there are some who allow this in certain states and if you ask nicely.
Above average premiums
The average premiums were calculated using the following dummy profile:
- Jennifer, 25 years old, is single, employed and has no previous accidents.
- She rents a 2017 Volkswagen Jetta 1.4 SE.
- She rents an apartment at 30324, North Atlanta.
- She secures every logical discount and opts for telematics programs (Progressive Snapshot, etc.).
The table above might give a very rough idea of what you are doing could Pay with Allstate and State Farm. Note that each case is different (I couldn’t create a sample listing from USAA without a military ID). However, there is a chance that your profile will differ from Jenny’s and your listings will too.
The only way to find out which provider is offering you the best prices is to create accurate, personalized offers from each of them. Fortunately, you can speed up the process with aggregators like Gabi (more on this below).
Allstate is a pretty well known company in the US. Their insurance products are available to anyone who qualifies. This is generally based on your creditworthiness and accident history. However, even if you have a low credit score, they may still be ready to insure you, only at a higher rate.
Since Allstate’s prices tend to be higher, this could cost a pretty penny. However, if you are looking for a company that offers no deposit option to get car insurance, this is one of the few. However, it is not widely used. To get the option, you’ll need to speak to a live agent to see if you qualify.
Learn more about Allstate or read our full review.
State Farm is another company almost everyone has heard of. State Farm is very similar to Allstate in terms of the application process. The biggest difference between the two companies is the prices.
Generally speaking, District farm offers much better rates for those with credit scores of 800 or higher. If you have a much lower credit score below 600 then Allstate would be a much better option for you.
Either way, this is one of the few other companies that offers the option of taking out a policy without a down payment. But just like Allstate, you’ll need to speak to an agent to get this option. None of the companies offer the option to apply online.
Learn more about State Farm or read our full review.
USAA is only available to certain facets of the population. If you served in a division of the military, you will qualify. Or, if you have a parent or child who has served, you may also qualify. Otherwise this is not an option for you.
The upside is that their rates are usually pretty good since their target market is the military and their families. And they simply offer a no deposit option to make the upfront cost less exhilarating.
There are some restrictions mainly related to location. The other exception is that the deposit would have to be less than $ 50 and no cancellations for non-payment have been recorded in the past three years.
If you meet all of the above qualifications, you will be eligible for a no-deposit auto insurance option through the USAA.
Learn more about USAA or read our full review.
Summary of the best insurance companies with no down payment
|Car insurance||How to compare prices||Can you automatically receive a policy without a deposit?|
|Allstate||Generally highest, but lower for below average credit||No, you need to speak to an agent|
|District farm||Lower for excellent credit but higher for below average credit||No, you need to speak to an agent|
Alternatives to car insurance without a deposit
While car insurance with no down payment sounds great, it can be difficult for most of us. So there are some other companies that are great alternatives. While they don’t have the option of taking out no deposit insurance, they have some excellent perks that make up for it.
Gabi is a bit different from the other insurance companies I’ve mentioned so far. Actually, Gabi is actually an insurance comparison platform instead of a standalone company. You are an insurance broker who helps potential customers get lightning fast quotes that can potentially save them big bucks.
The functionality is similar to any comparison platform. They ask you to put in your current policy so they know exactly what you have and what to look for. This helps streamline the process and get more accurate quotes.
If you decide on one of the offers and want to switch to this provider, you can do so directly via their website. That makes the process so much easier than almost any other option out there.
If you choose one of your partners, they will automatically do a search at the end of each renewal period. This will help you determine if it might be more beneficial to switch companies to get a lower plan and save yourself a lot of money.
In fact, they tout that their average customer saves around $ 825 in auto insurance annually just by using their platform. So if you’re looking to save money on auto insurance, it might be even better to try Gabi than looking for a no-deposit carrier.
Learn more about Gabi or read our full review.
Although Progressive is its own insurance company, it has a similar tool to Gabi. Of course, Progressive would like you to choose them as a carrier, but they do offer a comparison tool that will let you get their rate compared to other companies’ rates. And if another company is lower, they totally understand why you might not choose Progressive.
However, they are considered one of the best companies for fewer complaints and great customer service. And in the long run, this can be a deciding factor if you ever need to make a claim.
Progressive also offers many different discounts that can help bring your rate down even further. They also offer the Name Your Price tool, which you can use to enter information about your financial situation and try to put a guideline in your budget.
If the ultimate goal is to save money and find a very reputable company, Progressive might be the way to go. No matter what, there’s no harm in checking out the comparison tool and trying out the Name Your Price tool. You never know how much you can possibly save until you check this out.
Learn more about Progressive or read our full review.
How I came up with this list
This list was difficult to make because this information is not widely available. Hence, the three companies I included are the only three that I have found that they actually offer a no-deposit option.
Please keep in mind, however, that this option is not offered generally and that you must meet certain criteria in order to qualify.
Can I get car insurance without a deposit?
Yes, but almost definitely no. There are a few factors, and not every company offers this option. First and foremost, there are only a few states that offer car insurance without a down payment.
Currently, the only states that offer this option are:
- New York.
So if you don’t live in one of these states, you’re out of luck. At least for now.
Second, you have to put up with one of the few companies that offer this option. And they may not have the best prices, so you will end up having to spend more.
Why do insurance companies require a deposit?
All auto insurance companies prefer and require a deposit in most cases. This is to offset the upfront cost of doing a background check and setting up a new policy.
These two things cost them money and they like to make up for it on the front end, as opposed to a six month policy.
Why you should Consider paying a deposit
Since car insurance is hard to come by without a down payment, there are a few key factors to consider.
A deposit reduces your monthly payments
The first thing you need to recognize is that your down payment isn’t just money floating in the wind. The down payment is used to reduce your future monthly car insurance payments.
For example, if you bet 30% on a monthly policy of $ 100, you reduce the amount you paid to $ 70 instead. So paying a deposit on your car insurance can help make your budget more effective if you need that extra pillow on a monthly basis.
No deposit can mean a higher rate
Since most auto insurance companies prefer not to offer a no-deposit option, you may get a higher rate first. This is due to the fact that they consider you high risk. And with a high-risk customer comes a higher premium rate.
However, if you are ready to sign up for direct deposit using your debit or credit card, you may have a higher chance of avoiding the required deposit. This may not be an advertised option so you may need to call an agent on the phone to discuss this in order for it to go ahead.
There are other factors to consider
The other thing to be aware of is your credit rating and the type of vehicle you need to insure. If you have higher creditworthiness and a slightly older car, you are more likely to get car insurance with no down payment. However, if you are trying to buy a brand new high-end car, the chances are much smaller. This is because more expensive new cars put a much greater liability on the insurance company. Because of this, they want some of your money upfront to offset the risk.
Overall, finding car insurance that doesn’t offer a down payment is like looking for a needle in a haystack. It is a very difficult task, especially since the information is not widely available.
If you are in the car insurance market and you don’t want to pay a deposit, there are a few options available to you.
Allstate and State Farm offer this option, but only in certain states and when you are calling and speaking to an agent. They also usually require a higher credit rating as this is a higher risk investment for them.
USAA is a great option if you served in the military or have one of your family members. You automatically offer the option without a deposit.
Whichever way you choose your car insurance, there are a multitude of options for everyone. Deposit or no deposit.