Buy Now Pay Later Car Insurance: How To Issue Your Car With No Down Payment

Buy Now Pay Later Car Insurance is one of the many financing options you can use to help buy a new or used car. It’s an affordable way to get back on the road without having to pay upfront for your vehicle.

There are a lot of misconceptions about the way that Buy Now Pay Later Car Insurance works, and in this blog article you’ll find out what the truth is. You’ll find out how to issue a car with no down payment, how much it costs to finance over two years, and more!

Key Takeaways

Buy Now Pay Later Car Insurance

How To Issue Your Car With No Down Payment

The majority of auto insurance providers offer a variety of payment schedule options. Ask your agent if there is a way to get the installment plan you want if it isn’t advertised.

But not every motorist can obtain auto insurance with free or little down payment. As soon as your policy is in effect, insurance providers assume the risk of insuring both you and your car. They seek to recoup at least a portion of that risk with your initial payment.

Due to the additional risk owners of newer, more expensive cars provide to their insurer, acquiring low down payment insurance may be more difficult for them.

Drivers who file an SR-22 or have low credit must pay a higher upfront cost. If your car is older and less expensive to insure, your insurer may waive the down payment.

1. Find the most affordable auto insurance provider for you.

Even though getting an exact vehicle insurance quote without a driver’s personal information is challenging, we found that USAA was the most affordable provider of full coverage and minimum liability-only car insurance when all other factors were constant.

2. Carefully file claims

The adage “use it or lose it” does not apply to auto insurance. In actuality, your auto insurance policy becomes more affordable the less you use it.

This is due to how auto insurers calculate your premiums after you submit a claim. The typical overall premium expenses during three years are listed below, albeit the increasing amount will vary depending on the claim’s value, your state, and your insurance carrier.

For instance, when you are at fault in a collision, and the other party does not want to handle things without insurance, you may need to use your auto insurance. In this case, you must disclose your insurance information to the party, not at fault.

If the damage is more severe than the premium increase you would receive, that could be another justification.

3. Select the appropriate protection

As your car gets older, evaluate your insurance coverage. As time passes, you might find that your vehicle is paying for unnecessary insurance coverage, given its age and worth.

A common rule of thumb for auto insurance is that you probably don’t need collision and comprehensive insurance coverage if your car is less than $4,000 in value.

These alternatives for coverage often referred to as physical coverage, are made to safeguard your car. However, if the value of your car is low, you might be paying for unnecessary auto insurance coverage.

4. Look for insurance specials

Most insurance providers provide similar reductions, which are frequently already included in your policy. Here are some introductory discounts you are eligible for, just in case. Even while they might not have much of an impact financially when taken separately, they can add up to assist you in reducing the cost of your yearly premium.

  • Discount for good drivers
  • Student Discount
  • Discount for paperless
  • Multiple-policy discount
  • Bank account payment
  • Discount for complete payment
  • Telematics discounts for multiple vehicles
  • Vehicle safety equipment

List of 7 Best Buy Now Pay Later Car Insurance Companies In The U.S

The lowest annual rates for the driver categories we looked at are routinely offered by USAA, Geico, and State Farm out of the nine leading auto insurance companies in our yearly survey. This covers both good-driver premiums and those who might have received a speeding ticket. Teenage and elderly drivers may also be able to save money with these insurers.


GEICO’s mobile app helps you access digital insurance cards, process claims, and link to CARFAX to check your vehicle’s history and recalls.

GEICO’s gecko mascot may be the first thing that springs to mind, but its digital experience is excellent for individuals who prefer to go online than phone customer support.

Policyholders can obtain roadside assistance, upload images for damage estimates, and submit and manage claims with GEICO’s mobile app. It can also act as an “agent in your pocket” who answers insurance-related queries and alerts you to recalls or maintenance needs.

GEICO offers liability, collision, comprehensive, uninsured/underinsured motorist, and medical coverage. Its website explains these, along with limitations, premiums, and deductibles, to assist buyers in constructing coverage that meets their needs and budget.

It gives discounts to cut clients’ rates: vehicle equipment, driving history/habits, driver association, and customer loyalty. Anti-theft discounts can save members up to 23%, while accident-free drivers can save up to 22%.

GEICO offers military savings for active, retired, and emergency deployment. 15% and 25% savings. GEICO offers military discounts, one of just two on our list.

J.D. Power rated GEICO above average in most regions. U.S. Texas, the Mid-Atlantic, and the Southeastern areas are exceptions.

GEICO Discounts

  • New car discounts, airbags, anti-lock brakes, anti-theft systems, etc.
  • Five years accident-free
  • Seatbelt use, defensive driving or driver’s education courses, and good grades
  • Military and federal employee discounts
  • Multiple cars and policies
  • 50-plus driver discounts


  • The mobile app pays bills and provides roadside help.
  • Calculator coverage
  • Federal, military, elder, and student discounts


  • CA, CT, and M.A. don’t forgive accidents
  • Not GAP-insured

2. Allstate

Allstate’s Drivewise telematics function helps drivers save by tracking their driving, delivering feedback, and rewarding safe driving.

Allstate Drivewise is the best auto insurance company for telematics. This technology gives driver input and encourages safe driving. Customers get 10% off for signing up and up to 40% off with all discounts.

Drivewise has accident detection. It identifies accidents, whether you’re the driver or passenger, and offers to call roadside assistance or 911.

Allstate bundles discounts well. Customers save 10% and 25% when buying auto and house insurance. Allstate’s house insurance policies include flood protection, making bundling attractive.

Unlike several competitors, Allstate covers your own vehicle or a rental in Mexico. Customers in Texas and other border states should consider them.

Allstate Insurance Discounts 

  • Discounts on new vehicle equipment like anti-lock brakes and anti-theft devices
  • Several regulations
  • Safe motoring
  • Approving your insurance contract seven days before it goes into effect
  • One year without missing any payments
  • Discounts are available to students who maintain outstanding grades, study away from home, and finish a driver education course.
  • Full payment automation, paperless billing, and automatic payments


  • Drivewise offers driving tips and discounts to promote safe driving.
  • Safe Driving Bonus for every six months without an accident
  • Receive discounts for brand-new vehicles and adolescent drivers.


  • In some states, the Drivewise program is not available.
  • G premiums change depending on whether you purchase online or through a local agent.


USAA has one of the highest customer satisfaction ratings of all the companies we looked into, and it helps military families and veterans.

J.D. Power’s 2022 Auto Customer Satisfaction Study put USAA at the top in all states except California. USAA didn’t get a rank since it doesn’t meet J.D. Power’s study award standards.

USAA offers unique discounts like other companies. These include a car storage discount for service members. Customers who store their automobiles on a military base or installation can save up to 60% on their policy and 15% on comprehensive coverage. Stateside and deployed members can get a low-mileage discount.

Safepilot telematics is another USAA strength. Members get a 10% discount for joining and up to 30% for safe driving. Safepilot works through an app, and recent reviews describe the previous update as “buggy” and irritating.

Recent BBB reviews indicate a possible decline in customer service. Customers complained about claims issues and uneven service.

Although USAA is one of the most outstanding suppliers for service members, you may find a better bundle from another provider.

USAA Insurance Discounts

  • Safe driver discount for more than five years without an accident
  • Discount for defensive driving after completing an approved course
  • Discount on driver instruction after completing a foundational driving course
  • Teen drivers with outstanding grades are eligible for a good student discount.
  • There is a new vehicle discount for an automobile that is less than three years old.
  • Savings for many vehicles
  • Discounted vehicle storage
  • Discount for family
  • Number of membership savings years
  • Discount for the military installation
  • Electronic payments


  • This one received the greatest overall customer satisfaction rating of all the businesses we reviewed.
  • Members who had USAA customers as parents are eligible for a family discount.
  • In all 50 states, including Washington, D.C., and available.


  • Forbidden to civilians
  • Provides fewer specialist coverages than other auto insurance companies.

4. Amica Mutual

Due to their Platinum Choice Auto coverage, which enables drivers to earn Advantage Points incentives and save significantly on their deductible, Amica Mutual made our list.

The Amica Platinum Choice Auto Policy is a pre-packaged option that offers all the fundamental protection that most people require in addition to special extras like identity fraud monitoring.

Additionally, it provides rental car coverage, deductible-free glass coverage, and an Advantage Points program where customers can accumulate points to lower their deductibles or prevent rate increases following a claim.

Amica’s coverage is divided into two categories: must-haves and optional extras. Adding these services to your plan may increase your price.

MedPay, which offers additional medical coverage for bills and funeral costs, is one of these extras. Both collision and comprehensive collision are used to repair the damage that isn’t caused by accident, like damage from a fire, a natural disaster, or theft.

Amica Insurance Discounts

  • Combining insurance and covering several cars
  • Up-front premium payments, paperless transactions, and AutoPay
  • Three years without claims and a defensive driving course are solid driving habits.
  • Young drivers: for finishing a training program, for receiving outstanding marks, and for being enrolled full-time in school
  • Having security elements such as passive restraints or electronic stability
  • Loyalty discounts following two years of insurance
  • There are legacy discounts available for drivers under 30 whose parents have had Amica insurance for at least five years.


  • Free replacement of airbags (after they deploy)
  • Changing locks if your keys are stolen
  • $1000 for bail bonds and wage reimbursement if you have to go to court.
  • It provides a non-binary gender option


  • Doesn’t provide insurance for ridesharing
  • Not all functionalities are accessible everywhere.
  • Hawaii doesn’t have access to coverage

5. Progressive

Progressive’s Name Your Price service lets drivers choose affordable coverage.

Progressive is customizable. Customers establish a budget, and Progressive builds a policy to match. Policyholders can select coverage limits and deductibles.

You can boost your collision deductible to save on your premium, but you’ll have to pay more if you’re in an accident.

Progressive offers GAP coverage. This $14-a-month coverage covers up to 25% of the vehicle’s worth minus what you owe. Custom equipment coverage can fix mobility attachments, a GPS, or other vehicle customizations.

Progressive covers things few insurers do. One is ridesharing coverage, whether you work for Uber, Lyft, or food delivery, full-time or part-time. Progressive’s collision policy covers pet injuries from accidents.

Progressive Insurance Discounts

  • Combining your auto insurance with your home, renters, or life policies
  • Multiple vehicle insurance
  • Anti-theft devices and other safety equipment for vehicles
  • Selecting automatic and paperless payment methods
  • Retaining Progressive’s ongoing protection
  • Discounts for teen drivers: full-time, high-achieving students and those attending school away from home


  • Join the drive-monitoring program to lower your premium.
  • With its Name, Your Price function, search for premiums within your price range.
  • Utilize Progressive’s comparison tool to compare prices.
  • Program for Loyalty Rewards


  • Prices may change depending on whether you purchase online or over the phone.
  • Discounts change and aren’t offered in every state.

6. State Farm

State Farm is the finest car insurance for young drivers since it offers GPA-based discounts of up to 25%.

State Farm offers teen drivers significant savings that can offset high rates. It can save up to 25% if its young driver maintains a 3.0 GPA until age 25. Under-21 drivers can earn a discount for completing driver’s ed.

The “Student Away at School” discount only covers the student during vacations and holidays.

State Farm has 19,000 agents in all 50 states. This is great for customers who desire individualized service and a dedicated agent.

State Farm’s policies cover rental cars and travel fees for accidents 50+ miles away. Others cover roadside assistance if your car breaks down. Still, State Farm’s travel expenses coverage extends roadside assistance if you’re in an accident covered by your comprehensive and collision insurance. This covers up to $500 per loss for lodging, food, and a rental car.

Drive Safe and Save monitors speed, braking, and other driving factors and delivers feedback. It gives you a discount just for joining, and using the app might save you up to 30%.

State Farm Discount

  • Combining renters, homeowners, and life insurance
  • Multiple-car insurance
  • Safe driving saves Telematics rewards safe driving
  • Driving defensively (in select states)
  • Safety equipment (seatbelts, airbags on older vehicles)


  • Mostly available
  • Drive Safe & Save and Steer Clear save money.
  • Expense reimbursement


  • CA, MA, and R.I. don’t provide Drive Safe & Save.

7. Farmers

Farmers offer savings for teachers, healthcare personnel, and first responders, making it the best vehicle insurance for essential workers.

Farmer’s rates aren’t the lowest but offer unique plans and discounts. Affinity discounts are given to healthcare professionals, members of particular organizations and active, reserve, and honorably discharged military people.

The Senior Driver discount is for drivers over 55 who take state-approved safe driver training. Senior drivers pay higher prices, like youthful drivers, since they’re riskier to insure.

Farmers offer classic car insurance. This coverage protects your collectible during a vehicle exhibition or overseas. Policyholders can add free spare parts coverage and get up to $750.

Farmers Insurance Discounts 

  • Combining insurance coverage and covering several vehicles
  • Student discounts for performance in class and distance from home
  • On-time, automatic, paperless payments
  • Joint family vehicle (not available in California)
  • Passive restraint, anti-theft, and anti-lock brake systems
  • Vehicles that run on electricity, hybrids, or other alternative fuels (only in California)
  • Military personnel and other vital service providers are eligible for discounts.


  • If your car is totaled, the Guaranteed Value policy will pay out an “agreed value.”
  • Offers a variety of discount categories
  • Discount for automobiles using alternative fuels (first insurer to offer this)


  • The amount of your discount and its eligibility depends on where you live.
  • It does not provide GAP protection


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Consumers with limited resources have many options for finding fantastic offers, such as Buy Now Pay Later Car Insurance. You can still obtain good coverage with a minimal deposit if you shop around, even if not all insurers provide these plans, and they are not legal in all jurisdictions.

Comparing as many quotations as possible is the first step in obtaining Pay Later Car Insurance. Utilize websites like these to rate swiftly. Find the best prices for the coverage you require by comparing ten or more quotes. Start now to save more on the quality insurance you require.


Can Car Insurance Be Effective Immediately?

Yes! Usually, your auto insurance policy takes effect the moment you buy it. Anywhere in the world, using your phone, you may purchase insurance online and start receiving coverage right away.

How Long Does Insurance Last After Missed Payment?

An insurance provider will usually mail a check within 30 days of accepting a claim. Therefore, you should typically receive reimbursement on your insurance claim two to three months after submitting it. However, if the insurance company has a good cause, it may prolong the investigation.

How Long Does It Take For An Insurance Payment To Clear?

The insurance provider will ordinarily deliver the check for the entire sum within 30 days of the date you settle the claim if you agree to a lump payment (the most popular form).

What Happens If You Miss Your First Car Insurance Payment?

Your payment will not be processed, and you risk losing all of your coverage if there are insufficient funds, the card they have on file is expired, or you entered your billing information incorrectly, and your card cannot be charged. Additionally, up to $15 in late fees may be assessed against you until your payment clears.

Are You Still Insured If You Miss A Payment?

If any insurance covers neither your car nor your ability to operate it, it takes up to six years for a missed payment to be removed from a credit report. A lower credit score makes it harder to secure loans, credit cards, and mortgages.

What Happens If You Don’t Pay Your Insurance On Time?

Your insurance company may cancel your policy. This indicates that neither your car nor you are covered by insurance to drive it. Your credit report might reflect missed payments for up to six years.

Your credit score could suffer; as a result, making it more challenging to receive a loan, credit card, or mortgage.

You can learn more from the video below:

About Author

Buy Now Pay Later Car Insurance
Lydia Alolade
I am a professional article and e-book writer with 4 years of experience, I write on well research content on cryptocurrency, stocks, loans and finances.

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