As you shop around for auto insurance, you may encounter insurance companies offering “cheap car insurance with no deposit required.” It’s easy to see the appeal of such an offering—after all, who wouldn’t want to have their car legally insured without having to pay up front?
But you have reason to be skeptical. In most cases, reputable insurance providers won’t write car insurance policies without some money down because the risk is too high for them. When they advertise “no deposit required” or “zero down payment,” it can be misleading. What they often mean is they’ll waive the down payment or deposit, but your policy still won’t go into effect until you’ve made your first month’s payment.
Don’t worry—you still have options for cheap car insurance coverage. Here at Dairyland®, we work with you to customize a coverage plan that makes sense for you, your priorities, and your budget. Even if you don’t have the cash on hand for a large deposit, we can work together to find a solution.
Let’s review some misconceptions around no-deposit-required car insurance, as well as other options that could work for you.
Do your research. This means getting free quotes from several insurance companies, and contacting them directly to discuss your options. As you compare prospective insurance providers, consider the following:
Because reputable insurance providers don’t sell auto insurance without some form of initial payment—whether that’s a down payment or your first month’s payment—you need to understand your other options.
Your down payment demonstrates to your insurer that you’ve got real financial stakes in maintaining your coverage. And the most immediate benefit of making a down payment is reducing your subsequent monthly payments.
Car insurance companies vary in what they require for down payments—sometimes as little as 6 percent of your total premium, and up to the entire term premium.
If you decide to make a down payment on your auto insurance, you can choose from a number of formats—you may have options like cash in-person, with a credit or debit card, with an electronic check (e-check), or other options your insurance provider offers.
Depending on your circumstances, buying insurance with an SR22 may be required to get you out on the road. There’s a lot to know about SR22 policies, including who needs them and how long they last. So we built our SR22 Learning Center to help you find the information you need quickly.
You can play an active role in determining your car insurance rates—and we can help. We outline how you can get cheaper car insurance rates, and we also offer a range of auto insurance discounts, including:
Keep in mind that available discounts can vary by state, so give us a call to discuss your options.
Keep in mind that some common phrases don’t actually mean what they appear to mean. Some insurers use ambiguity to make their payment plans sound more innovative or forgiving than they actually are. To help you avoid insurance scams and other risks, be aware of these coverage options:
We get it—finding the right car insurance can be complex. But it doesn’t need to be complicated. Check out our answers to frequently asked insurance questions to assist in your research.
Each state establishes its own minimum coverage requirements for auto insurance. Discover your required coverage limits and use that information to secure a quote today.