Updated: March 28, 2025
Advertising & Editorial Disclosure
A car insurance down payment is the upfront amount you pay when choosing installment payments. If you pay your premium in full, no down payment is required.
Insurers don't offer a $20 down payment on car insurance as a product. Your deposit is based on a certain percentage of your total premium.
Find cheap rates to increase your chances of getting a $20 down payment. You can also lower your deposit by adjusting your policy, maintaining a good credit score and being a safe driver.
Some drivers may qualify for a low initial deposit, but a true $20 down payment is rare. Insurance companies typically require a percentage of the total premium upfront rather than a fixed amount. Opting for minimum coverage can lower your deposit, but it may not offer adequate protection.
Several factors influence your ability to secure a low down payment:
Drivers with a strong credit score and clean driving history are more likely to qualify for lower upfront costs. Insurers see these drivers as lower risk, which can reduce the required deposit.
Your state’s regulations play a big role in how insurers handle down payments. Some states require insurers to collect a minimum percentage upfront, which may make ultra-low deposits like $20 impossible.
Opting for your state’s minimum coverage can lower your initial payment. However, this may leave you underinsured in case of an accident.
Car insurance companies don’t offer a fixed "$20 down payment" option. Your initial payment depends on your total premium, risk profile and state regulations. Most insurers require at least the first month’s premium upfront, making such a low deposit uncommon.
You may qualify for a lower-than-average down payment by selecting minimum coverage, improving your credit score and applying for discounts. Paying your full premium upfront eliminates the need for a separate down payment.
The term “no-deposit car insurance,” also called “no money down” or “no down payment,” can be misleading. It suggests you can get coverage without paying anything upfront.
In reality, it means you can pay month-to-month instead of making a large upfront payment. However, you must still pay your first month’s premium before your coverage starts.
Securing a $20 down payment on car insurance is uncommon, but you can reduce your upfront cost by selecting an affordable policy and qualifying for discounts. Choosing minimum coverage can significantly lower your deposit since these plans often require less upfront. Some insurers, like GEICO, offer deposits as low as $17 for minimum coverage.
While full coverage provides more protection, it usually requires a higher down payment. You can also lower your car insurance costs by improving your credit score, completing a defensive driving course or raising your deductible.
When filing a claim, you may need to spend more out-of-pocket, but a higher deductible allows for a lower premium. As a result, you'll also have a lower down payment.
Your credit rating is one of the most significant factors affecting rates in most states. Responsible drivers are less risky to insure, so insurers typically offer them lower premiums.
Many insurance companies offer discounts for completing a defensive driving course. Check with your insurer to learn how much you could save and which courses qualify.
Older cars are typically less expensive to insure than newer ones. Dropping optional coverage (such as comprehensive and collision insurance, which you may not need with an older vehicle) makes your policy more affordable.
Insurance rates are typically higher for younger drivers because they’re more likely to get into accidents due to inexperience. After your 25th birthday, insurers usually begin to offer cheaper premiums.
Violations on your driving record lead to an increase in your rates. Maintaining a clean record allows you to find lower rates.
Comparing quotes from multiple companies is a great way to find deals. You’re more likely to have a lower down payment with a cheaper plan.
Insurers don’t provide a "$20 down payment on car insurance" as a standard option. However, drivers with a clean record and strong credit may qualify for a low deposit. Choosing minimum coverage can reduce upfront costs but might leave you underinsured.
We’ve listed affordable car insurance providers with flexible payment options. While $20 down payments are rare, some insurers offer low upfront costs for eligible drivers. Comparing quotes helps you find the best deal based on factors like location, credit score and driving history.
Car insurance with a low down payment can be a short-term solution for low-income drivers, though it may cost more over time. Deposits as low as $20 are rare.
This article explains how to find low-down-payment options. Choosing minimum coverage and comparing rates from affordable insurers can help lower your upfront costs.
Below are frequently asked questions to provide more information on low-down-payment car insurance:
Finding a $20 down payment on car insurance is rare. However, it may be possible if you’re a safe driver, live in a state with low rates and qualify for discounts.
A down payment is the amount you must pay your insurer — if you choose to pay in installments — before your coverage takes effect. It’ll cost as much as your first month’s minimum premium.
GEICO and Nationwide may offer better chances for car insurance with a low down payment. USAA is also a strong option for those with a military background.
MoneyGeek ensures its content is credible and authoritative through a detailed process of writing, fact-checking and editorial review. Every article undergoes rigorous scrutiny by skilled fact-checkers to maintain high editorial standards and deliver accurate, valuable information.
We gather car insurance data from trusted sources, including:
Expert insights from industry and academic professionals further enhance MoneyGeek's content. Notable contributors include:
MoneyGeek’s editorial process prioritizes reader needs by addressing common questions and providing actionable insights. Articles are thoroughly researched, edited, fact-checked and reviewed by a team of experts to ensure accuracy and reliability.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
