Last updated: June 2023

About Car Insurance Down Payments

A down payment is a portion of the purchase price you pay upfront as part of a loan or payment plan for things that are typically too expensive to buy outright, like a house or car. But did you know auto insurance companies offer payment plans too? Perhaps you don’t have all the money just yet to pay in full and you want to secure the coverage you need quickly. So, setting up a monthly payment plan with a car insurance down payment will make your coverage more affordable. And if you want to start your first month’s policy for less, then you’ll want to try to secure a low down payment on your car insurance.

Why is there a down payment on auto insurance?

When you purchase an auto insurance policy, you typically have the option to pay for your policy in full or in installments, usually in the form of a monthly payment. If you choose the monthly option, a down payment is generally required to get your car insurance policy started. Like most purchases in life, you can’t get something without making any type of payment for it, and that holds true for auto insurance as well.

Here’s why: after an auto car accident, you would expect your insurance company to help pay for the damages and injuries. That protection (in addition to it being the law) is a big reason you have car insurance! Since your insurer is agreeing to cover your losses as outlined in your insurance policy, they will want at least an initial payment in return before your coverage becomes in-force (active). Basically, you aren’t protected until you’ve made a payment, either in the form of your first monthly payment or a low down payment.

Is there such a thing as no down payment car insurance?

You can’t get car insurance without making some kind of payment upfront—at least not from a reputable insurance company, says Forbes. Even if you’ve seen someone advertising cheap car insurance with no down payment, unfortunately, it’s almost certainly too good to be true. There’s really no such thing as no down payment auto insurance. As we discussed above, you must either make a down payment (or pay in full) before your coverage goes into effect. 

How much are auto insurance down payments?

Down payments vary depending on several factors, including:

  • The state you live in: Where you reside and drive can impact your rates and down payment amount.
  • The vehicle you drive: Older, safer vehicles are more likely to be eligible for a low down payment because they cost less to insure.
  • Your individual policy: The coverage types and amounts you choose can shape your down payment.
  • Your car insurance carrier’s guidelines: Every insurer has their own guidelines regarding down payments.
  • Your driving history: High-risk drivers who require SR-22 or FR-44 filings might have to pay more than someone with a spotless driving record.
  • Your credit history: Drivers with not-so-great credit and a history of missed payments might be forced to make a higher down payment.

Can I get low down payment car insurance?

Under the right circumstances, you may be able to secure a low down payment on your auto coverage. Ultimately, the down payment amount depends on the factors discussed above.

Some companies, like Direct Auto, offer low down payments throughout the year! That’s one of the ways we try to make your car insurance more affordable, on top of auto insurance discounts and flexible payment options. Direct works hard to help everyone secure the lowest down payment possible and save as much money as possible on their premium, and we even put you in the driver’s seat when it comes to payment plans.

  • YOU choose your monthly amount. Decide how much you want to put down to determine your monthly payment. The more you put down, the lower your monthly payments.
  • YOU pick your payment date. Review your budget and choose the time of the month that works best with your financial schedule.
  • YOU pay how you want to pay. Pay online, over the phone, or in person at your local Direct Auto.

How can I make a down payment with Direct Auto?

There are so many flexible ways you can make your down payment, plus your payments after that too. Visit a store near you to pay in person, go online, download our Direct Auto app, or pay by phone. Which convenient payment method will you choose?

  • Pay with a credit or debit card
  • Pay with an electronic check
  • Pay with cash in person 

Get a low down payment at Direct Auto! We specialize in offering drivers the coverage they need, the services they want, and the respect they deserve — regardless of their driving history. Ready to see how you can get auto insurance at a budget-friendly rate? Call 1-877-463-4732 or stop by a nearest Direct Auto location to see how low your down payment can go!

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