Are you searching for low-cost car insurance with no money down? It is possible to find immediate car insurance coverage with no upfront cost, but you’ll have to meet certain criteria. Almost all companies that offer $0 down car insurance are only interested in drivers with a stellar driving record who only need liability coverage. This type of policy will allow you to legally operate your vehicle on the road, which may be very beneficial if you are currently low on cash.

On the other hand, if your driving record includes traffic tickets, such as speeding and moving violations, and at-fault accidents, it is highly unlikely that you will qualify for no money down car insurance. In this case, you will be considered a high-risk driver and will be expected to pay a deposit to get your policy started. Deposits can range from 10% of the annual premium cost to 33% for those drivers with a particularly bad record.

Is Car Insurance Mandatory?

Currently, only Virginia and New Hampshire do not require residents to carry car insurance. If you call any other area of the United States home, you must have car insurance to legally operate your vehicle on the road.

The amount of car insurance drivers is required to carry varies, depending on where you live. Each state sets its own limits.

What States Allow No Down Payment Car Insurance?

Very few states will allow you to obtain car insurance without making some form of payment upfront. They include:

  • Arizona
  • California
  • Florida
  • Georgia
  • New York
  • Oklahoma
  • Washington

California, in particular, has plenty of insurance companies that sell policies with zero money down. Golden State residents, with good driving history, should be able to find the insurance they need at an affordable price and with no money down.

Florida, also, has plenty of insurers willing to give drivers coverage with no money down, as long as they have a clean driving record.

If you do not live in one of these states, you may still be able to find a cheap car insurance policy with a very low down payment. In some cases, companies only require $20 down to activate your policy. Most of us should be able to fit this amount into our budget.

Reasons You May Not Qualify for $0 Down Payment Car Insurance

As mentioned above, $0 down car insurance is usually reserved for the best drivers. In addition, companies may consider your age and credit score when determining if a down payment is necessary.

Any driver under the age of 20 should know that they will definitely be required to put money down before their car insurance policy is activated. This is because this age group is considered the most high-risk group on the road. There are plenty of studies and reports that prove it.

A low credit score will also jeopardize your chances of getting $0 down car insurance. This is especially true for drivers with a rating of 600 or less. In fact, a low credit score often results in a higher premium.

The make, model, and year of the car you drive can also affect the amount of your down payment. High-end, newer cars are less likely to qualify for no down payment insurance. This also applies to sports cars and those that have undergone modifications to increase their speed.

How to Find Cheap Car Insurance with No Down Payment

Here are a few tips to help you get the lowest rate and increase your chances of not being asked to make a down payment.

  • Compare. Comparison shopping is crucial when looking for a car insurance policy. Request quotes from multiple companies to see who will give you the best deal. Be sure that you are comparing policies.
  • Look for discounts. Most car insurance companies offer a wide array of discounts, from being a good student to serving in the military. Make sure that you take advantage of any discount you are qualified for. Bundling your policy with family members is also a great way to get a discount.
  • Carefully analyze your options. Before deciding on a policy, take the time to really look at what you are getting. Are the deductible amounts the same? (The higher your deductible, the lower your premium.) Do they offer the same advantages, such as roadside assistance or rental car reimbursement? Have you made sure that you are receiving credit for every discount you are eligible for?

Finding cheap car insurance with no money down may require some effort on your part, but the money you save may be well worth it. It’s time to start comparing quotes.