We may not be using cash as much these days, but the numbers don’t lie. Over 80% of Americans still make at least one payment per month with paper currency in the U.S. for a variety of reasons, including privacy or their way of budgeting. While most car insurance companies don’t accept cash payments, some still do.

It’s not that they don’t want your business; it’s that cash creates problems for recordkeeping, processing, and fraud prevention. While there are a few exceptions, the vast majority of insurers expect payments to come electronically, by card, or through your bank.

Still, some branches exist as exceptions, but if you’re paying with paper money, you may be paying more than other drivers. Our guide helps you find where you can pay with cash, how to do it safely, and the best alternatives.

Can You Still Pay for Car Insurance With Cash?

Technically, yes, but it’s rare. A handful of smaller or local insurance agents may still accept cash payments in person. However, large national carriers like Progressive, Allstate, GEICO, and State Farm no longer handle direct cash transactions.

That’s because digital payments are faster, safer, and easier to document. If you hand over physical cash and something goes wrong, like the payment isn’t recorded properly, you could lose both your money and your coverage.

Some insurers offer limited third-party options, like MoneyGram, Western Union, or authorized retail partners, where you can make a cash payment that gets forwarded to your insurer. However, these options often include fees and delays, making them inconvenient at best.

Which Car Insurance Companies Accept Cash Payments

Paying for car insurance with cash is far from a nationwide standard. In most cases, it depends on your location, the company, and whether they have local offices or partnerships with payment processors.

Major carriers often move away from handling physical money, but some individual branches still allow in-person or third-party cash payments for convenience.

If you live in an area with one of these providers, you may have a few options:

Insurance Company	Cash Payment Option	How It Works
State Farm	Accepted at local offices	Pay in person with cash, check, or card at a State Farm agent’s office.
Direct Auto Insurance	Accepted at store locations	Pay in cash at any Direct Auto office.
The General	PayNearMe partner	Generate a barcode in their app, then pay cash at 7-Eleven, CVS, or Family Dollar.
Mercury Insurance	MoneyGram partner	Pay cash at participating MoneyGram locations.
Freeway Insurance	Accepted in retail offices	Walk into any Freeway office and pay directly.
Local / Independent Agencies	Case-by-case basis	Many local agents still accept in-person cash payments, but always confirm first.

*Again, your options in the table above are far from widespread and may change at any time.

Tips for Paying for Car Insurance With Cash

Paying with cash can still work if you take the right precautions. Here are a few dos and don’ts to help you protect yourself and your coverage:

What To Do

• Pay in Person — Always hand your cash to a licensed agent or authorized third-party location.
• Get a Receipt — Ask for a printed or digital proof of payment showing the date, amount, and policy number.
• Confirm Posting — Check your account or contact your insurer to make sure your payment went through within a few days.
• Ask About Fees — Some services, like PayNearMe or MoneyGram, charge small processing fees.

What Not To Do

• Never Mail Cash — It’s untraceable and could easily be lost or stolen.
• Don’t Pay Someone “On Behalf” of Your Insurer — Unless it’s an authorized partner.
• Avoid Late Payments. Cash can take longer to process—make payments early to prevent lapses.

Better Ways to Pay for Car Insurance

Most drivers today use a digital payment method, even if they don’t love online billing. It’s faster, traceable, and often cheaper. Here are your best alternatives:

Payment Method	How It Works	Why It’s Better
Debit or Credit Card	Pay online, by phone, or in person.	Instant confirmation and fraud protection.
Electronic Funds Transfer (EFT)	Automatic withdrawals from your checking account.	Prevents missed payments and earns discounts.
Money Order	Mail or drop off a verified payment.	Safer than cash; leaves a paper trail.
Online Payment Portal or App	Pay securely through your insurer’s digital platform.	24/7 access, fast posting, and convenience.
Pay-in-Full	Pay your 6-month or yearly premium upfront.	Usually includes a 5–7% discount.

If you don’t have a bank account, consider prepaid debit cards or money orders, as both are widely accepted and still safer than carrying cash.

The Perks of Going Paperless

Paying online or setting up automatic billing isn’t just convenient—it saves you real money. Most insurers offer at least one of these:

• Paperless Billing Discount: Save up to 5% for receiving your bills electronically.
• Auto-Pay Discount: Enroll in recurring payments and save another 5–10%.
• Pay-in-Full Discount: Pay your premium upfront to unlock even more savings.

It’s a simple way to make your coverage cheaper without changing your plan or carrier.

Find The Right Carrier, No Matter How You Pay for Car Insurance

Although some drivers may prefer paying for car insurance with cash, these days, it’s a lot harder to accomplish. Furthermore, at Free The Insurance, we believe that you deserve the lowest rate possible.

Cash payments make this difficult, which is why we help drivers identify paperless discounts, the best protection for their vehicles, and maximize their savings.

We understand the need for privacy and treat our customers with the utmost discretion, while connecting drivers with partners who use safe payment methods online.

If you’re thinking about how to pay, it’s also worth rethinking what you’re paying for. The right policy should fit your budget and your needs, not just your payment method.

Compare rates from multiple top-rated carriers so you can find the best combination of coverage, convenience, and price, all without hidden fees or confusing terms.

Get a free auto quote today and see how easy it is to save, no cash required.

Sources:

Federal Reserve Bank of Atlanta. Accessed November 2025.