Updated: August 19, 2025
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There’s no such thing as true “no-down-payment” car insurance—your first payment is always at least the cost of your first month’s premium.
Choosing minimum coverage, stacking discounts, and improving your risk profile can lower your initial cost. Full coverage almost always requires higher first payments.
Timing, state regulations, and insurer flexibility all influence how low your initial cost can be.
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. Minimum coverage can lower your deposit since these plans require less upfront. Some insurers, like GEICO, offer minimum coverage deposits as low as $15.
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.
Your credit score and driving record directly impact your car insurance deposit amount. Taking these steps 30-60 days before applying can reduce your required deposit and qualify you for better rates.
How to Improve Your Credit
How to Improve Your Driver Profile
Don't waste time getting quotes from companies that rarely offer low deposits. Focus on insurers with a track record of flexibility.
Company Research:
Discount Preparation:
Gather documentation for all applicable discounts before you call:
When and how you apply affect your chances of securing a low deposit. Timing and approach matter more than most drivers realize.
Apply at these times to get the best rates:
Get quotes from at least three companies before negotiating. Mention lower quotes from competitors and ask to speak with underwriting for deposit flexibility. Request recalculation after providing additional documentation like proof of good credit or clean driving history.
Don't accept the first deposit amount quoted. Ask every company: "What's the lowest deposit you can offer?" Also inquire about discounts that can reduce your deposit requirement, whether a six-month policy has a lower deposit than a 12-month term, and if paying annually eliminates the deposit.
Follow these steps to get the cheapest car insurance deposit:
Questions that get results:
"What's the absolute lowest deposit you can offer?"
"Can underwriting review my application for deposit flexibility?"
"Would paying annually eliminate my deposit requirement?"
When filing a claim, you'll need to spend more out-of-pocket, but a higher deductible allows for a lower premium and down payment. Note that liability coverage typically has no deductible, while comprehensive and collision coverage require deductibles.
Comprehensive and collision coverage may not be worth it for older vehicles. Switching to liability-only can cut your deposit in half.
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.
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.
Your deposit amount depends on your credit score, coverage level and the insurer's specific policies. Here's what you can expect to pay as a deposit:
The term no-deposit car insurance, also known as no money down or no down payment, can be misleading. It suggests that you can get coverage without paying anything upfront.
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.
Different regions favor different approaches to securing low first payments. Here’s what works best based on your location’s insurance market:
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, so comparing quotes helps you find the best deal based on factors like location, credit score and driving history.
USAA serves active-duty military members, veterans and their families, offering competitive rates and flexible payment structures. While true $20 first payments are uncommon, qualified members with clean records, minimum coverage, and applicable discounts may secure initial costs near that range. USAA’s bundling options, loyalty rewards, and military-specific discounts (like reduced rates for stored vehicles during deployment) can lower premiums over time.
GEICO is widely recognized for competitive pricing, especially on minimum coverage, making it a common contender for lower first payments. Federal employees, military members and safe drivers may qualify for additional savings that bring initial costs closer to the $20 mark. GEICO's online quote system displays exact first-month premiums upfront, making it easier to compare deposit amounts.
Progressive’s “Name Your Price” tool allows drivers to set a budget and find coverage that fits, potentially lowering the first payment. The Snapshot usage-based program can reward safe driving with premium reductions over time, helping make lower upfront costs achievable at renewal. Progressive is especially competitive for tech-savvy drivers who want online management tools and tailored coverage.
State Farm’s local agents work directly with customers to customize payment plans, making it easier to negotiate for a lower first payment. Good student and safe driver discounts can help reduce initial costs, and bundling with homeowners insurance may lower premiums further. While hitting the $20 mark is uncommon, State Farm’s personalized approach can help drivers get close.
Your location plays a major role in whether you can secure $20 down payment car insurance. State regulations, competition levels and minimum coverage requirements all affect deposit amounts. Consult with licensed agents in your state for specific requirements and availability. Here's what to expect based on where you live.
Thanks to aggressive competition among insurers, Texas drivers have some of the best odds for securing low deposits. Multiple regional carriers compete alongside national companies.
Emphasize your rural or suburban location for better rates, and consider bundling with homeowners insurance to reduce your deposit.
Top companies: GEICO, Texas Farm Bureau and State Farm.
California's consumer-friendly regulations work in your favor. Proposition 103 (California's insurance regulation that requires state approval for rate increases) provides rate oversight that benefits drivers, and the state's restrictions on credit scoring can help those with less-than-perfect credit.
Consider pay-per-mile insurance if you drive less than 10,000 miles annually, as these programs often have minimal deposits.
Top companies: GEICO, Mercury and AAA.
Competition among insurers in Florida creates opportunities for low deposits, especially if you apply during the right season. Apply during non-hurricane season (October through April) when insurers are more aggressive with pricing.
Highlight any hurricane preparedness measures for potential discounts, and consider higher deductibles to reduce deposits. Many regional carriers offer competitive deposit options.
Top companies: GEICO, Progressive and Direct General.
Michigan's no-fault insurance law creates higher minimum coverage requirements, making low deposits much harder to achieve. The required personal injury protection (PIP) coverage increases overall policy costs and deposits.
Focus on usage-based insurance programs that can reduce deposits based on safe driving habits.
Top companies: GEICO and Progressive.
Strict state regulations and higher minimum coverage requirements make $20 deposits rare in New York. However, drivers with excellent credit and clean records still have options. Emphasize your clean driving record and stable employment history. Consider insurers that specialize in New York's market, like New York Central Mutual.
Several state regulatory factors affect your deposit amount, regardless of which company you choose:
Car insurance with ultra-low first payments (sometimes as low as $20) is rare but possible for qualified drivers. True $0 options are extremely uncommon, and most insurers require 25% to 50% of the premium upfront. Choosing minimum coverage, comparing rates from affordable insurers, and using targeted strategies can help lower your initial cost, though low-down-payment policies may cost more over time.
Below are frequently asked questions to provide more information on low-down-payment car insurance:
You can get car insurance with a $20 down payment, though it's rare. However, it may be possible if you're a safe driver, live in a state with low rates and qualify for discounts.
A car insurance down payment is the amount you must pay your insurer if you choose to pay in installments before your coverage takes effect. It can be as much as your first month's minimum premium.
The companies that offer a low down payment on car insurance include GEICO and Nationwide, which may offer better chances for car insurance with a low down payment. USAA is also a strong option for those with a military background.
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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.
