Jessica Sautter has a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Written by Jessica Sautter
Content Writer Jessica Sautter

Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around auto insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

Full Bio →

Reviewed by Natasha McLachlan
Content Writer Natasha McLachlan

UPDATED: Oct 1, 2020

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UPDATED: Oct 1, 2020Fact Checked

Writing Check for Down Payment on Car Insurance

Are you writing check for your initial down payment?

When you pay for car insurance, you may notice that there is an extra charge that is added to the first premium payment. This is the down payment which many insurance companies include is designed to protect them against the failure to pay for the rest of the coverage. You can think of a down payment as insurance for the insurance company.

Generally speaking, most down payments are roughly 10% to 20% of the total price of the insurance. For example, if you pay $600 for six months of car insurance, a down payment 20% will be $120 which is usually added to your first payment. However, there is no down payment car insurance available for qualified buyers.

How to Get Car Insurance with No Down Payment?

There are a number of ways to reduce or even eliminate the down payment for car insurance. You can do the research on your own or work with an independent insurance agent like us who is not tied down to one company. Obviously, you will need to work with the insurance company that provides for you the services needed at the lowest rates. This represents the best starting point for negotiating what you need in terms of reducing or eliminating the down payment.

Search for Best Quote: You can start by obtaining free quotes from different insurance companies as many will offer a low or no down payment offer depending on a number of factors. Once you enter the required information, you will receive a free quote from the company. You can compare different companies to see which one offers the best rate and the lowest down payment.

Pay for All of the Insurance: This is the most common way to avoid a down payment by simply paying the entire amount at once. This way a down payment is not needed because everything is paid for up front. While this represents the most money out of your pocket when paying for car insurance, it can also save you money over paying month to month.

Good Credit Score: If you have an exceptional credit score, you should be able to reduce the down payment considerably. A good credit score means that you have a record of making payments which translates into being less of a risk for insurance companies.

Good Payment History: If you have been with a particular insurance company for a year or more and have made your payments on time, you can negotiate to reduce the down payment. You can use your history with the company as proof that you pay on time and many agents will offer a reduced down payment.

Getting car insurance without down payment and paying on a monthly basis is no easy, but it can be done if you qualify. Remember, you can use the down payment as a negotiating tool when trying to get the best rates from the insurance company. You can also ask about what programs or incentives they have which will result in getting a reduced down payment.

While the most obvious course of action is to simply pay all of your insurance at once, there are ways you can reduce the down payment considerably if not eliminate it entirely if you have a good credit score and a solid payment history with the insurance company.

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Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.

Jessica Sautter has a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

Full Bio →

Written by Jessica Sautter
Content Writer Jessica Sautter

Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around auto insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

Full Bio →

Reviewed by Natasha McLachlan
Content Writer Natasha McLachlan