Cheap No Down Payment and No Deposit Car Insurance

"No down payment" or "no deposit" car insurance simply means you pay your first month's premium to start coverage, rather than a larger upfront payment. Instead of requiring a substantial initial payment amount for your full annual cost, these plans allow you to begin with just your first month's cost, making insurance more accessible if you're managing a tight budget.  The first monthly payment is not a deposit, it pays your first month of coverage.  See below for details on no deposit car insurance and payment plans.

Using a credit card to make your first payment can help if you don't have funds available to get insured today.

MoneyGeek analyzed coverage options, customer satisfaction ratings, financial stability, and affordability to identify the cheapest and best companies for very cheap low or no down payment car insurance.

For the cheapest no deposit car insurance, GEICO, State Farm, and Progressive offer very cheap minimum coverage options.  All three provide cheap no down payment car insurance at just $45 per month, making them ideal for drivers needing immediate coverage with minimal upfront costs. These companies offer even cheaper cost policies in some states mentioned below.

These are minimum liability-only policies can be very cheap without big upfront payments, but only protect against damage you cause to others and their property and they do not cover damage to your own vehicle.

Travelers, Nationwide, and GEICO have the most affordable full coverage options with no deposit. Travelers has the lowest rates at just $92 per month, followed closely by Nationwide at $93 per month and GEICO at $98 per month. Unlike minimum liability policies, these full coverage options protect both your vehicle and other parties in accidents, covering collision damage, theft, vandalism, and weather-related incidents.

Car insurance costs vary significantly by location due to differences in state regulations, accident rates, population density, weather patterns, and regional repair costs. 

GEICO leads by offering the cheapest no down payment car insurance in 5 states, followed by Progressive and State Farm with 4 states each, and Auto-Owners and American National with 3 states each.

The table below shows average premiums from each state's most affordable insurer at various coverage levels.

The best car insurance company isn't the same for everyone. Insurers consider factors unique to each driver, so two drivers may get different quotes for the same policy.  State Farm ranks best overall for drivers looking for no deposit car insurance.  They allow you to pay for your policy online , in-person, or by phone and offer flexible payment plans outlined below on this page.

The table below compares top providers to help you find the right no-down-payment insurance.

Find the cheapest no down payment car insurance by comparing quotes, discovering low-deposit options, and exploring flexible payment plans that fit your budget while still providing the coverage you need.

Despite what you might see in online advertisements, "no deposit" or "no down payment" can be partially misleading. All legitimate insurance companies require some form of initial payment before providing coverage.  This is because insurers take on financial risk when insuring a driver and need to secure some payment upfront.

What companies actually mean by “no down payment” car insurance is that you only need to pay your first month's premium to activate your policy, rather than a larger percentage of the total premium or a separate deposit fee. This initial payment isn't an extra cost or true deposit—it's simply the first installment of your regular premium and counts toward your total policy cost.

The good news is that many major insurers like GEICO, State Farm, and Progressive have flexible payment options to make this initial payment more manageable:

• Monthly payments: Pay just the first month's premium to start coverage
• Pay-per-mile plans: Lower initial costs for drivers who don't travel much
• Customized billing dates: Some companies allow you to select a payment date that aligns with your payday schedule
• Electronic payment discounts: Save by setting up automatic payments or paperless billing
• Multiple payment methods: Choose from credit/debit cards, bank transfers, checks, or money orders

When shopping for cheap car insurance, focus on finding companies that offer the lowest monthly premiums and flexible payment terms rather than searching for "zero down payment" options. This approach will help you secure legitimate coverage with minimal upfront costs.

No-deposit car insurance means you pay only your policy's first month without a separate deposit. Initial payments can be as low as $20. Providers offer various payment plans to spread out costs:

• Annually: Pay the entire premium once a year
• Semi-annually: Split the payment into two installments per year
• Quarterly: Pay every three months
• Monthly: Month to month payments

Be cautious of "no-money-down" promotions, as some payment is usually necessary for immediate coverage.

Nationwide, State Farm and GEICO offer the lowest rates with no down payment for multiple coverage options. They're among the best for customer service, affordability, various discounts and product options. While they require an initial payment, they offer flexible payment options, with partial payments as low as $20 to start the policy. 

Below are the cheapest no-down-payment car insurance providers:

If you're having trouble paying for car insurance upfront, using a credit card can help. Most insurance companies accept credit cards, giving you more options when money is tight.

Good Things About Using Credit Cards for Insurance Payments

• More Time to Pay: When you don't have enough cash right now, putting your insurance on a credit card gives you extra time (usually about 30 days) to get the money together.
• Cash Back and Points: Many credit cards give you cash back or travel points when you use them, which can help offset some of your insurance costs.
• Discounts for Paying in Full: Using a credit card might let you pay your whole policy at once, which often gets you a discount from insurance companies.
• Set-and-Forget Payments: Setting up automatic payments with your credit card helps make sure you never miss a payment and lose your coverage.

Things to Watch Out For

• Extra Fees: Some insurance companies charge extra "convenience fees" for credit card payments, usually between 1.5% and 3% of what you're paying. Always ask if your insurer charges these fees.
• Interest Costs: If you can't pay off your credit card bill in full, the interest you'll pay can make your insurance much more expensive over time.

Here are MoneyGeek's tips on how you can get very cheap car insurance quickly:

Minimum liability coverage meets state legal requirements at the lowest cost, typically 30-50% cheaper than full coverage. It only pays for damage you cause to others, not your own vehicle. This makes it ideal for older cars (worth less than $4,000), drivers on tight budgets, or those with sufficient savings to replace their vehicle if damaged.

While state minimums (often written as 25/50/25 or similar) are legally sufficient, they may not provide enough. The first two numbers represent bodily injury limits per person/accident (in thousands), while the third covers property damage. Consider higher limits like 100/300/100 for better protection against costly claims and lawsuits, especially if you have assets to protect.

Full coverage adds comprehensive and collision protection, covering your vehicle against accidents, theft, vandalism, and weather damage. This is recommended for newer vehicles, leased or financed cars (usually required by lenders), and when you couldn't easily afford to repair or replace your vehicle out-of-pocket.

Comparing quotes helps you find the best car insurance company and policy. MoneyGeek's calculator provides personalized quotes from multiple providers in minutes. Enter some basic information below to get started.

Drivers with poor credit have higher insurance premiums and difficulty affording even the initial payment. Improving your credit score is one of the most effective ways to get cheaper insurance over time.

Drivers with poor credit (below 580) pay an average of 97% more for full coverage insurance than those with exceptional credit (above 800) – a difference of more than $800 annually for full coverage policies.  The good news? Even improving your credit score by just one tier can save an average of 17%  on your annual premium, with drivers in the worst credit category seeing the biggest benefit from improvement – around 20% savings.

For drivers struggling to afford even the initial payment on car insurance, there are several assistance options available. Here's where to find help:

State-Sponsored Insurance Programs

Only a few states currently offer government-sponsored insurance programs for low-income drivers:

1. California Low-Cost Auto Insurance (CLCA) This program provides affordable liability insurance to help low-income drivers meet the state's insurance requirements. To qualify, you need a good driving record and household income below the Federal Poverty level. Call 1-866-602-8861 or visit mylowcostauto.com to check eligibility.
2. New Jersey Special Automobile Insurance Policy (SAIP) Available to New Jersey residents enrolled in Medicaid with hospitalization coverage. This "Dollar-a-Day" program costs around $48 monthly and covers emergency medical expenses but doesn't cover vehicle damage. Contact the Personal Automobile Insurance Plan at 1-800-652-2471.
3. Hawaii's Assistance Programs Hawaii's Department of Human Services provides free car insurance to residents who receive financial assistance through programs like Temporary Assistance for Needy Families, or Supplemental Security Income. Contact Hawaii's Department of Human Services for eligibility details.
4. Maryland Auto Insurance Program While not specifically income-based, this program helps Maryland drivers who have trouble obtaining coverage through conventional insurers, without considering credit scores or past coverage lapses.

OCHO: A Flexible Payment Solution

OCHO offers a unique solution for drivers who can't afford large down payments but don't qualify for state assistance programs. This digital insurance agency works with multiple insurance carriers and provides interest-free financing for initial insurance payments.  Note below, it is only available in certain states.

How OCHO works:

• OCHO compares quotes from partner insurance companies like Progressive, Dairyland, National General, and others
• When you select a policy, OCHO provides a 0% APR loan to cover the initial down payment (which can be as high as 50% with traditional insurers)
• You repay in small bi-weekly installments aligned with your paycheck schedule
• On-time payments are reported to credit bureaus, helping you build credit history

Key benefits:

• Lower down payments for all customers (some may qualify for $0 down)
• Flexible payment dates to match your pay schedule
• No late fees and extra time to pay when needed
• Available in Arizona, Georgia, Illinois, Missouri, New Mexico, Texas, Washington, and Wisconsin

Read More: What if you can't afford car insurance?

Below, we answer some frequently asked questions about no-down-payment car insurance to help you understand how it works and how to get cheaper rates.

Data Depth and Overview

MoneyGeek analyzed 2,474,515 quotes from 607 companies across 3,523 ZIP codes to find the cheapest car insurance for various driver profiles.

Driver Profiles

We created an average driver profile, including:

• 40-year-old male
• Clean driving record
• 2012 Toyota Camry LE
• 12,000 miles driven annually

To analyze rates for specific driver types, we adjusted this profile by location, age, credit score and driving history — adding tickets, DUIs or accidents as needed.

Coverage Definitions

Full coverage includes:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability
• Comprehensive and collision coverage with a $1,000 deductible

Minimum coverage includes:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability
• No comprehensive or collision coverage

How We Ranked Insurers for Affordability

We ranked the best affordable insurance providers using data from AM Best, J.D. Power, the CRASH Network report card, Quadrant Information Services and state insurance departments.

Our scoring system (out of 100) weighted factors as follows:

• Affordability: 40%
• Customer satisfaction: 25%
• Claim satisfaction: 20%
• Coverage offerings: 10%
• Financial stability: 5%

Learn more about MoneyGeek's auto insurance methodology.