Cheap Auto Insurance with No Deposit (Rates + Companies)

With cheap auto insurance with no deposit, you can expect to pay at least the first month upfront. Deposits are usually between eight and 33 percent of your total annual rate and go towards the cost of your annual car insurance coverage. To get the cheapest auto insurance rates with no deposit, take advantage of all of the discounts offered to you. Learn more below.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 10, 2021

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Can't-Miss Facts

  • It can be challenging to find very cheap car insurance with no deposit
  • Deposits can be up to 33 percent of your car insurance rates
  • Down payments will be deducted from your auto insurance rates

Don’t be misled by companies offering cheap car insurance with little to no down payment. You’ve heard the old saying that if something is too good to be true, then it probably is. We don’t want you to be the victim of a scam or false advertising.

No-deposit car insurance sounds great, but how can you know it’s legitimate? In this guide, we’re going to show you everything you need to know about buying cheap car insurance with zero deposit upfront.

Can you get insurance without a down payment? Let’s get straight to the facts.

Compare cheap car insurance with no deposit now by entering your ZIP code into our free online comparison tool.

How much does an auto insurance down payment cost?

It’s important to remember that a down payment isn’t an additional cost to your rates but is figured into the total price of your policy. There aren’t many options when it comes to no-deposit car insurance; most insurance providers will require some kind of down payment to get policies started but that money does contribute to your monthly car insurance, it isn’t something extra you’ll pay above and beyond the cost of your policies.

Essentially, whatever you pay as a down payment will be deducted from your overall payments on the policy.

For drivers who need basic auto insurance, some companies offer go-low auto insurance which can keep your car on the road and you on the go.

In the table below, we’ll show you average six-month rates from top providers alongside different down payment percentages so you can compare.

Average Six-Month Auto Insurance Rates and Down-Payment Deposit Amounts
CompaniesAverage Six-month Rates10% Deposit20% Deposit30% Deposit
USAA$1,270.96$127.09$254.18$381.28
GEICO$1,608.20$160.82$321.64$482.46
State Farm$1,633.82$163.38$326.76$490.15
American Family$1,721.55$172.15$344.30$516.46
Nationwide$1,723.35$172.33$344.66$517.00
Progressive$2,021.92$202.19$404.38$606.57
Farmers$2,094.40$209.44$418.88$628.32
Travelers$2,222.45$222.24$444.48$667.68
Allstate$2,449.12$244.91$489.83$734.34
Liberty Mutual$3,047.97$304.79$609.58$914.39
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The more you pay for your down payment, the less your future installments will cost on your monthly payment plans. You shouldn’t think of a down payment as an additional fee but as part of your policy going forward.

It’s also worth noting that some companies offer a discount to those who pay for the full term of the policy up front.

Can I get auto insurance without a down payment?

Who’s eligible for auto insurance with no or little deposit?

Drivers with good driving history and other important factors will get the best rates on car insurance. Those low rates will translate into the lowest deposit possible.

In almost every state in the country, if you own a car and want to drive it legally on the road, you must have an auto insurance policy. You may see ads for $20 down payment car insurance or get your first month free for car insurance.

So, can you get car insurance with no deposit? There are some auto insurance companies with no down payments, but you’ll still have to pay the full rate. It can be expensive, but there are ways to save money.

We’ll get to that, but first, let’s take a look at the factors that insurance companies usually take into consideration when setting your rate.

  • Credit history impacts your auto insurance rates
  • Age and marital status
  • Companies also look at your driving record
  • Where you live
  • Vehicle make and model
  • Payment options

Did any of these factors surprise you? Most are common sense, but one that may surprise you is payment options.

People who look for and purchase “no deposit” car insurance are usually doing so because money is an issue, and paying for a six-month or one-year policy in advance is not possible while living paycheck to paycheck.

Another factor mentioned above is age and marital status. Younger drivers pay higher insurance prices because they are considered more likely to take risks while driving. They are also considered more likely to drive recklessly or file claims.

Whether you’re single or married also factors into the cost of your car insurance. Married drivers are considered less risky and file fewer claims than those who are single.

Not all states allow the use of all of these factors. You may be able to get no credit check car insurance in your state, and age, gender, and marital status may also be excluded from rates.

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Why do insurance companies use down payments?

As is the case with buying anything online in today’s global marketplace, full payment is usually required in advance. You may find companies that advertise “no down payment” or “get your first-month free” car insurance but these are gimmicks and should be avoided.

Can you get free car insurance? No, it doesn’t work that way. Make sure the auto insurance you select is going to protect you and your family when you need it.

Is there any auto insurance with no down payment?

If you perform a quick Google search for “zero down payment car insurance,” or “buy now pay later car insurance,” you’ll be rewarded with dozens of results that do nothing to clear up the confusion about what policies may be out there for you to choose from.

Let’s take a look at some important terms:

  • Zero-Down Deposit – Zero down deposit is the acquisition of car insurance without paying a deposit. Some companies offer this as a gimmick to entice consumers into buying less-than-quality auto insurance
  • No Down Payment – No down payment is often confused with zero down deposit but can be differentiated by the fact that the payment isn’t a deposit but actually the first month of an auto insurance policy
  • Monthly Payment – Monthly payments are based on a year-long insurance policy and then divided into 12 equal installments

To acquire insurance and have it be considered valid, a monthly payment is required by insurance companies.

Can you really buy cheap auto insurance with zero deposit down? We wouldn’t suggest it. If you fall for this sales pitch, chances are, the first time you end up in a fender bender and need to file a claim, your insurance company will be nowhere to be found.

Who has the cheapest auto insurance?

Although there aren’t auto insurance companies that will offer you coverage with no deposit or down payment, we can show you rates from the companies around the country. 

We’ve partnered with Quadrant Information Services to show you auto insurance rates in several different categories from the country’s top providers. Let’s take a look at what we found.

Average Annual Auto Insurance Rates by Driver Characteristics
CompaniesDriver DemographicsDriving RecordDriver Credit HistoryDriver Commute and Annual MileageVehicle Make and ModelAuto Insurance Coverage Type
USAA$2,537.30 $2,537.30 $2,577.25 $2,537.30 $2,537.30 $2,537.30
GEICO$3,215.01 $3,215.01 $3,227.04 $3,215.01 $3,215.01 $3,215.01
State Farm$3,260.00 $3,260.00 $3,326.15 $3,260.00 $3,260.00 $3,260.00
American Family$3,443.09 $3,443.09 $3,443.08 $3,443.09 $3,443.09 $3,443.09
Nationwide$3,450 $3,450 $3,421.35 $3,450 $3,450 $3,450
Progressive$4,035.52 $4,035.52 $4,107.60 $4,035.52 $4,035.52 $4,035.52
Farmers$4,194.27 $4,194.27 $4,146.89 $4,194.27 $4,194.27 $4,194.27
Travelers$4,434.91 $4,434.91 $4,521.10 $4,434.91 $4,434.91 $4,434.91
Allstate$4,887.95 $4,887.96 $4,977.16 $4,887.96 $4,887.95 $4,887.95
Liberty Mutual$6,073.46 $6,073.46 $6,264.88 $6,073.45 $6,073.46 $6,073.45
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According to the data, of the top providers in the country, USAA has the lowest overall average rate. That’s good news if you or someone in your immediate family is in the military, as only active-duty military and veterans are eligible to sign up for coverage with USAA.

But other top providers, like State Farm and GEICO, offer great rates with no such stipulations. Of course, these are average rates, and yours may differ based on your circumstances.

For example, as a customer with State Farm, you can expect to pay $3,260 yearly if you have a good driving record, and with GEICO, the price is even a bit lower at $3,215. Conversely, the same coverage based on your driving record with Liberty Mutual will cost you $6,073. That’s nearly twice as much.

How can you cut costs on your auto insurance rates?

One of the easiest ways to cut costs on your car insurance is to shop around and discover how to compare auto insurance prices. You can use our comparison tool to compare car insurance policies and get auto insurance quotes.

Online car insurance means no broker fee, so consider buying that way. Get started now to find cheap auto insurance that suits your needs.

You should also take advantage of the many car insurance discounts offered by coverage providers. Most discounts are automatically included in your policy, but here’s a standard list that you can review with your insurance agent or customer service representative.

  • Good driver discount
  • Student driver discount
  • Paperless discount
  • Multi-policy discount
  • Paid in full discount
  • In-vehicle safety devices
  • Telematics programs

While most of these discounts may only mean a few dollars off individually, combined, they can add up to a significant reduction in your overall rates.

Where can I purchase cheap auto insurance with zero deposit near me?

When searching for auto insurance, a few common questions that arise are “Can you get car insurance and pay later?” or “How can I find very cheap car insurance near me?” The easiest way to find cheap auto insurance near your location is to get an online quote.

Whether you want to get the cheapest car insurance in Texas or cheap auto insurance in Missouri, enter your ZIP code in our online comparison tool and receive quotes based on your specific needs.

Can I get car insurance with no deposit?

Car insurance companies provide a policy for coverage based on a rate, which is the price you pay for that coverage. Most auto insurance companies allow you to make payments toward your rate in monthly installments.

Once you sign up for your policy, you will receive payment information. You will find out your deposit or first month’s payment amount, the amount of your monthly payments, and the cost if you pay for your entire policy upfront. Usually, you will get a discount if you pay in full.

Finding a no-deposit auto insurance company can be tricky since most companies don’t offer that.

Do all cars have to have a certain amount of required auto insurance coverage?

Auto insurance coverage is required in most places — there’s really no getting around this expense, and most insurers require you to put some money down when you purchase a policy as a good-faith gesture that you intend to pay for the coverage you’re receiving.

The one thing you don’t want to do is drive without insurance. According to the Insurance Information Institute, one in eight drivers are uninsured. They can be subject to fines, license suspension, and possible jail time.

Now that we’ve explained the reasoning behind zero deposit down car insurance, we want to review the top providers and their average monthly rates.

Average Monthly Auto Insurance Rates for Top Companies
CompaniesAverage Monthly Rates
USAA$211.82
GEICO$268.03
State Farm$272.26
American Family$286.92
Nationwide$287.22
Progressive$336.98
Farmers$349.03
Travelers$370.40
Allstate$408.18
Liberty Mutual$507.99
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You might only have to pay for your first month of coverage in order for the auto insurance policy to be considered active. If you decide to pay your auto insurance rate in monthly installments, make sure that you have a system in place so that you never miss a payment.

While you may find auto insurance that accepts checks for the down payment, paying via automatic debit will ensure you never forget.

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What’s the bottom line on no deposit auto insurance?

We’ve covered the basics of zero-down deposit car insurance and discussed ways to find the cheapest car insurance. So, what’s the bottom line?

Car insurance companies are required to report to the state department of motor vehicles when a new driver signs up for auto insurance coverage or when a driver decides to cancel an insurance policy.

The car insurance company has very little incentive to provide you with proof of coverage upfront if you do not pay some sort of deposit to them.

While choosing the best coverage and avoiding claims can help you save money, the best way to find low-cost auto insurance is by shopping around.

Find affordable no deposit auto insurance today with the best rates for your situation. Enter your ZIP code to compare no deposit auto insurance quotes today.

 

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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