Carrier vs. Carrier Comparisons
Choose Progressive, American Family, and Nationwide as our top choices for cheap car insurance companies that don't require a down payment, with rates starting at $78/month.
We’ll explore the leading companies and their key benefits and drawbacks to help you make an informed decision. Discover valuable tips on how to qualify for these options.
| Company | Rank | Monthly Rates | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
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#1 | $78 | A+ | Flexible Rates | Progressive |
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#2 | $79 | A | Loyalty Rewards | American Family |
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#3 | $80 | A+ | SmartRide Program | Nationwide |
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#4 | $81 | A++ | Comprehensive Discounts | Auto-Owners |
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#5 | $82 | A | Accident Forgiveness | Safeco |
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#6 | $84 | A++ | Green Incentives | Travelers |
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#7 | $85 | A | Signal App | Farmers |
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#8 | $87 | A+ | AARP Discounts | The Hartford |
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#9 | $88 | A | Early Shopper | Liberty Mutual |
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#10 | $90 | A+ | Pay-Per-Mile | Allstate |
Whether you're buying auto insurance online or in person, this guide is for you. Ready to find cheaper car insurance coverage? Enter your ZIP code above to begin.
What You Should Know
- Progressive's the top choice for flexible rates
- Learn about each provider's unique benefits and potential drawbacks
- Gain insights on qualifying for no down payment options and maximizing discounts
#1 – Progressive: Top Overall Pick
Pros
- Flexible Payment Options: Progressive lets drivers begin their coverage without spending much at the start. It's a good choice for those who watch their money.
- Name Your Price Tool: It helps drivers discover a plan that fits their budget while maintaining strong coverage.
- Comprehensive Discounts: From competitive rates and customizable coverage options for many driver needs, our Progressive car insurance review tells you all about it.
Cons
- Customer Support Issues in Some Regions: Satisfaction with service can vary depending on location.
- Additional Fees for Add-Ons: Features like roadside assistance and rental car coverage can increase costs.
#2 – American Family: Best for Loyalty Rewards
Pros
- Excellent Loyalty Rewards: Loyal customers receive rewards in the form of discounts and other benefits from the company’s programs.
- Customizable Coverage: Gap insurance and reimbursement for rental cars are among your choices.
- Safe Driving Discounts: Our review of American Family car insurance showcases their commitment to rewarding safe drivers with attractive benefits.
Cons
- Availability Restrictions: The company is not available in every state across the country.
- Higher Premiums for High-Risk Drivers: Drivers with less-than-spotless records might pay more for their insurance.
#3 – Nationwide: Best for SmartRide Program
Pros
- SmartRide Program: Nationwide's telematics program rewards safe drivers with discounts based on their driving habits.
- Comprehensive Coverage Options: Offers a variety of coverage options, including accident forgiveness and gap insurance.
- Strong Financial Ratings: Our Nationwide car insurance review highlights their innovative programs and solid financial standing for reliable coverage.
Cons
- Premiums May Increase Post-Discount Period: Drivers may see rates rise after initial discounts expire.
- Regional Availability of Discounts: There are some discounts and programs available in only a few states.
#4 – Auto-Owners: Best for Comprehensive Discounts
Pros
- Comprehensive Discount Program: Good deals on car and home insurance, paying full, and earning rewards for driving safely.
- Highly Rated for Customer Service: In customer satisfaction surveys, auto owners always get great feedback.
- Customizable Coverage Options: You can customize your policy with extras like rental car coverage and accident forgiveness.
Cons
- Limited Availability: Not available nationwide, which can be a drawback for some drivers. (Learn More: Auto-Owners Reviews)
- Requires an Independent Agent: You have to buy policies through agents, which might not be attractive to people who like shopping online.
#5 – Safeco: Best for Accident Forgiveness
Pros
- Accident Forgiveness: Safeco's policy guarantees that your insurance costs won't go up after your first accident, which can help you save money over time.
- RightTrack Program: Allows safe drivers to save as much as 30% on their insurance with Safeco's tracking technology.
- Wide Range of Coverage Options: Rental car reimbursement, roadside assistance, gap insurance, and more.
Cons
- Limited Discount Availability: Discounts can be difficult to qualify for if you don't have a strong driving record.
- Higher Deductibles: Safeco's policies often come with higher deductibles compared to competitors as mentioned in our Safeco insurance review.
#6 – Travelers: Best for Green Incentives
Pros
- Green Incentives: Travelers provides incentives to hybrid and electric vehicle drivers, such as discounts and unique coverage options.
- IntelliDrive Telematics Program: IntelliDrive app gives you up to 20% savings if you’re a careful driver.
- Strong Financial Ratings: Travelers car insurance review highlights their strong financial backing for peace of mind.
Cons
- Below Average Customer Service: Travelers falls a bit short of the industry's standards for customer satisfaction.
- Limited Access to Certain Discounts: Even if there’s no down payment, the monthly costs could still be higher than those from companies that focus on no-down-payment plans.
#7 – Farmers: Best for Signal App
Pros
- Signal App for Safe Drivers: Those who use the app and drive well get discounts in the farmers' telematics program.
- Flexible Policy Options: It offers add-ons like glass repair and rideshare insurance for people who need it.
- Comprehensive Coverage: As mentioned in the Farmers car insurance review, we’ll look at how Farmers changes its policies to suit the needs of different drivers and its new app.
Cons
- Higher Rates for Risky Drivers: Drivers with a poor driving record may face higher premiums.
- Not Available in Every State: Farmers' coverage options are limited in certain regions.
#8 – The Hartford: Best for AARP Discounts
Pros
- Exclusive Discounts for AARP Members: If you’re a senior, it is the best option because AARP members can get special rates and discounts.
- Lifetime Renewability: It offers coverage renewability for motorists of a certain age, giving long term security.
- RecoverCare Assistance: In our review of The Hartford, they have coverage for daily tasks like cleaning and cooking after an accident.
Cons
- Primarily for Seniors: Younger customers are less attracted to the Hartford because it caters primarily to older drivers.
- Potentially Higher Premiums for Younger Drivers: If they’re not automatically eligible for the AARP discounts, younger drivers may pay more than older drivers.
#9 – Liberty Mutual: Best for Early Shopper
Pros
- Early Shopper Discounts: Liberty Mutual rewards customers who shop for insurance in advance with lower premiums.
- Telematics Savings: The RightTrack program offers savings to drivers who drive safely.
- Comprehensive Digital Tools: Our car insurance review of Liberty Mutual highlights its strong online and mobile policy management.
Cons
- Rates May Increase After Initial Discounts: Premiums may rise after the early shopper discount period.
- High Premiums for Riskier Drivers: High-risk drivers may find Liberty Mutual's rates higher than other companies.
#10 – Allstate: Best for Pay-Per-Mile
Pros
- Pay-Per-Mile Program: If you don’t drive often, you should definitely go with Allstate, which has a plan based on usage.
- Drivewise Telematics Discounts: Safe drivers can receive up to 40% off with Allstate's Drivewise program.
- Extensive Agent Network: Our Allstate car insurance review explores their comprehensive local agent help.
Cons
- Higher Full Coverage Premiums: Full coverage rates tend to be higher than those of their competitors.
- Mixed Customer Service Reviews: Allstate service may be relatively satisfactory in some regions and dissatisfactory in others.
Understanding No Down Payment Options
Many drivers find the cost of car insurance to be a heavy burden. However, some insurance companies provide policies without asking for a down payment.
You can begin your coverage right away without the burden of a heavy upfront cost. Seek out companies that offer reasonable monthly payments and solid protection.
When selecting an insurance policy, it’s crucial to understand the difference between minimum and full coverage, the table below shows the monthly rates from top providers. Minimum coverage often meets state requirements but may not provide adequate protection in case of an accident.
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
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$90 | $160 |
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$79 | $143 |
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$81 | $147 |
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$85 | $150 |
| l |
$88 | $155 |
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$80 | $145 |
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$78 | $140 |
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$82 | $148 |
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$87 | $152 |
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$84 | $149 |
Companies like Progressive and American Family offer full coverage options at competitive rates, ensuring you have peace of mind in various situations while still not requiring a down payment.
Read More: Liability vs. Full Coverage: Car Insurance Explained
Discounts for No Down Payment Insurance
Many of the companies listed below offer a variety of discounts that can further reduce your monthly premium. For example, American Family and Safeco provide discounts for safe driving, multi-policy holders, and students.
| Insurance Company | Available Discount |
|---|---|
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Multi-Policy, Safe Driving, Smart Student, Anti-Theft, Pay-Per-Mile |
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Multi-Policy, Safe Driver, Loyalty, Autopay, Early-Bird |
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Multi-Policy, Paid-In-Full, Safety Features, Good Student, Anti-Theft |
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Multi-Policy, Safe Driver, Signal, Good Student, Alternative Energy |
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Multi-Policy, Right Track, Safe Vehicle, Paperless, Early Shopper |
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Multi-Policy, Smart Ride, Accident-Free, Paperless, Good Student |
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Multi-Policy, Snapshot, Pay-In-Full, Homeowner, Safe Driver |
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Multi-Policy, Accident Forgiveness, Right Track, Safe Driver, Teen Driver |
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Multi-Policy, Defensive Driver, Aarp Membership, Vehicle Safety, Driver Training |
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Multi-Policy, Hybrid/electric Vehicle, Safe Driver, Good Student, Homeowner |
You can find more accessible car insurance options that fit your budget and know what kind of car insurance you really need without the burden of a down payment.
How to Qualify for No Down Payment Car Insurance
Finding affordable car insurance without a down payment can significantly ease financial stress for many drivers.
By understanding the qualifications needed for these flexible payment options, you can secure coverage that fits your budget while ensuring you're protected on the road. Here’s how to position yourself for the best no-down-payment options available.
- Good Credit Score: A higher credit score can lead to lower-risk assessments and eligibility for no down payment options.
- Clean Driving Record: Maintaining a record free of accidents or violations can enhance your chances of qualifying.
- Stable Employment: Proof of consistent income and stable employment can support your eligibility for flexible payment plans.
- Bundling Policies: Combining car insurance with home or renters insurance can provide discounts and help avoid a down payment.
- Usage-Based Insurance Participation: Enrolling in telematics programs can demonstrate safe driving habits, potentially qualifying you for no-down-payment options.
Qualifying for no-down-payment car insurance is achievable with the right approach. Explore top ways customers save money on their car insurance and drive with confidence.
Bottom Line: No Down Payment Car Insurance Options
Selecting the right insurance provider is crucial for finding cheap car insurance options that don’t require a down payment. Companies like Progressive, American Family, and Nationwide stand out as top choices due to their competitive rates and flexible payment plans.
Their high A.M. Best ratings indicate reliability in consumer car insurance claims ratings and customer service, ensuring you receive the support you need. If you take the time to look into them, you can find coverage that won’t weigh heavy on your wallet, and you won’t have to pay upfront.
Our free online comparison tool below allows you to compare cheap car insurance quotes instantly — just enter your ZIP code to get started.
Frequently Asked Questions
Is it okay not to pay car insurance?
No, failing to pay for car insurance can result in severe penalty for driving without car insurance, including policy cancellation, legal penalties, and being financially liable in an accident. Most states require minimum coverage, and not paying could lead to fines or a suspended license.
Is car insurance required for a car loan?
Yes, if you have a car loan, most lenders require full coverage insurance (both collision and comprehensive) until the loan is fully paid off. This protects their investment in the vehicle while you're still making payments.
Ready to shop around for the best car insurance company? Enter your ZIP code below and see which one offers the coverage you need.
What is the grace period of an insurance policy?
A grace period typically ranges from 10 to 30 days, depending on your insurer. This time allows you to make a late payment before the policy is canceled. It’s important to check your insurer’s specific terms to avoid coverage lapses.
How Much Are Auto Insurance Down Payments?
Auto insurance down payments can range from $0 (no down payment) to one or two months of premiums upfront. The amount varies by provider, and some companies offer flexible payment plans to reduce upfront costs.
Read More: Why Car Insurance Is so Expensive
How Can I Save Money on Car Insurance?
You can save money on car insurance by bundling policies, maintaining a clean driving record, improving your credit score, or opting for usage-based insurance programs like Nationwide’s SmartRide.
Does credit score affect car insurance?
Yes, insurers often use credit scores as a factor when determining rates. A higher credit score usually results in lower premiums, while a lower score may lead to higher costs.
Does Geico offer no-down-payment insurance?
Geico does not typically offer no-down-payment insurance but does provide flexible payment options. They allow policyholders to choose a low initial payment and pay the rest of the premium in installments.
Why do insurance companies charge a deposit?
Insurance companies charge a deposit to ensure commitment and reduce the risk of non-payment. The deposit helps cover the upfront costs of setting up a policy and protects the insurer from financial risk.
Are older cars cheaper to insure?
Generally, yes. Older cars often cost less to insure because their replacement value is lower, meaning collision and comprehensive coverage may be less expensive. However, other factors, such as safety features, still play a role in determining premiums.
Why do car insurance companies require down payments?
Insurance companies may require down payments to mitigate risk and ensure that the policyholder is committed to maintaining the coverage. The initial payment secures the policy and prevents cancellations due to non-payment.
Ready to find cheaper car insurance coverage? Enter your ZIP code below to begin.