Compare Rates and Save on Auto Insurance


Very cheap car insurance with no deposit means making monthly payments for your policy. Monthly payments are a great option for those that need to get fast and affordable insurance with the cheapest upfront cost. We discovered that GEICO, State Farm and Progressive are the best car insurance companies with flexible payment plans.

While you can save in the long run by paying annually for car insurance, not everyone can afford a lump sum payment. With no deposit or no down payment car insurance on a monthly payment cycle, you won't get any extra savings or discounts from paying in full, but you will be able to get covered with very cheap insurance fast.

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Very Cheap Car Insurance With No Deposit

Key Takeaways

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No-money-down policies refer to monthly payments for car insurance instead of a lump-sum premium.

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The first month's payment is typically the same as each additional monthly premium.

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Paying for car insurance monthly can help you spread out costs, but it's usually cheaper to pay in full.

The Cheapest Car Insurance With No Deposit or No Money Down

When you're looking for cheap car insurance, you may be able to save money by getting liability-only coverage. This kind of car insurance doesn't cover your car's damage, but it does cover any damage to other vehicles if you're in an at-fault accident.

For a very cheap no deposit policy with liability-only insurance, MoneyGeek found that GEICO, State Farm, and Nationwide are likely your cheapest options per month, and for up-front costs. Using national average rates, you could expect to pay the following amount for your first payment and for each month:

  • GEICO: $42 per month
  • State Farm: $54 per month
  • Nationwide: $57 per month

The table below shows the national average annual rates for a liability-only policy.

Average Premiums for a Liability-only Policy
Annual Premium



State Farm












Almost every state requires you to have at least liability insurance on your car. However, if you owe money on your car, the financing company will require you to carry full coverage car insurance.

Cheap No Deposit Comprehensive and Collision Coverage

In most cases, cheap full coverage insurance will be more expensive than cheap liability only insurance, but it offers more coverage and better financial protection. Full coverage insurance includes collision, which covers any damages to your car. It also includes comprehensive, which covers both damages to other vehicles and damage to your vehicle sustained by natural causes, such as hitting a deer or damage due to a hailstorm.

For a very cheap no deposit policy with comprehensive and collision insurance, MoneyGeek found that GEICO, State Farm, and Nationwide are likely your cheapest options for upfront costs, and per month. Using national average rates, you could expect to pay the following amount for your first payment, and for each month:

  • GEICO: $78 per month
  • State Farm: $92 per month
  • Nationwide: $100 per month

The table below shows the national average annual rates for a policy with comprehensive and collision coverage.

Average Premiums For a Policy With Comprehensive and Collision Coverage
Annual Premium



State Farm












On average, Geico is the cheapest company for most drivers based on MoneyGeek's analysis. You may have different results, however, as many factors affect how much you pay for auto insurance.

Insurance Rates

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Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.


What Is No Money Down or No Deposit Car Insurance?

No-money-down car insurance refers to a policy that allows you to pay monthly. Getting car insurance without having to pay any money upfront isn’t possible. You will have to pay at least the first month’s installment on your policy, but then you will be fully insured. That insurance down payment could be as low as $20. Insurance companies typically allow consumers to make payments:

  • Annually
  • Semi-annually
  • Quarterly
  • Monthly

If you need car insurance and can’t afford a huge lump sum, paying a monthly premium will get you insured right after making your first payment. “No-money-down” advertisements can be misleading because consumers are led to believe they can get car insurance without any payment at all; however, car insurance providers require the first month’s payment to activate the policy.

How No-Money-Down or No Deposit Car Insurance Works

If you choose a no deposit payment plan, you'll get the cheapest upfront cost. Cheap no down payment car insurance allows you to spread out the total premium cost over the term of your policy. So, if you received a rate of $720 for 12 months of coverage, you'd pay $60 upfront. Then, you'll make a payment of $60 each month until the term of the policy.

Insurance companies often offer discounts to customers who pay their annual premium in full when they purchase a policy. This means that the upfront cost of your insurance would be much more expensive, but you'll receive some savings. For example, if a car insurance provider offered a 5% discount for paying in full and you received a rate of $720, you'd pay $684 your first month. You wouldn't make any more payments and you'd save $36.

However, when money is tight the last thing you want is a big car insurance bill. If you can pay in a lump sum, you’ll save some money, but not everyone can afford a huge payment all at once.

Payment Cycle
Total Policy Cost

No Deposit Monthly Payments

If you chose a no deposit payment plan and the total cost of your policy was $720, you would only need to pay $60 upfront to get insured, and you'd make the same payment each month for a full year.

Standard Policy Paid in Full

If you can pay in full, the same $720 no-deposit policy may only cost $684 per year with the annual payment discount. You would make one initial payment of $684 with no following monthly payments, and you'd save $36.

What you pay for a car insurance policy will likely be different than the example above, and every insurer calculates rates uniquely. According to the Insurance Information Institute, many factors go into what a car insurance company charges you, including:

  • Driving record
  • Mileage
  • Where you live
  • Age
  • Gender
  • What kind of car you drive
  • Your credit score

Because insurance companies use a variety of information to calculate your unique rate, comparing car insurance quotes can help you get the best price — whether you're paying monthly or all at once.

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There's no such thing as a no-money-down car insurance policy, and car insurance providers don't require a deposit to get a policy. You simply need to make your first monthly payment to become insured.

While choosing a monthly payment plan will cost more in the long run, it's the cheapest upfront cost. Car insurance rates are determined by your unique profile and MoneyGeek has the resources to help you find the cheapest rate for you.

Explore the options below to find the cheapest car insurance based on your profile and needs:

One of the fastest ways to compare rates based on your profile and price range is our car insurance calculator. Our calculator allows you to enter your anonymous but basic information to get a quick view of how rates may stack up for you.

Insurance Rates

Compare Insurance Rates

Ensure you are getting the best rate for your coverage. Compare quotes from the top insurance companies.


Which Companies Offer No Deposit Car Insurance?

A lot of car insurance companies offer flexible payment plans, which means you can pay monthly. Paying your insurance premium in installments will make your total cost higher, but monthly payments can help drivers on a tight budget. Shopping around will help you find the best rate, and drivers with good credit scores are more likely to be approved for a monthly payment plan option.

The companies below are known to offer monthly payments to those who qualify, but it's good to check with other companies to see if they provide similar payment plans.

  • Pay in two, three, four, five or six installments
  • Online quotes with graphs and charts
  • Customer service is available 24/7
  • Military discounts
State Farm
  • Bundle all of your policies into one bill
  • Select your payment due date
  • Monthly payments available
  • Safe driver discounts
  • Easy to initiate claims
  • Convenient mobile app
  • Monthly payments available
  • Bundle with your property insurance
  • “Name your price” tools let you name a price, and then Progressive will show you coverage options

Five Steps You Can Take to Get Cheaper Coverage With a Payment Plan

Everyone wants to save money on car insurance, especially if you’re opting for a monthly payment plan. Consumers on a budget usually want monthly payment plans because they’re quick and require less money upfront, but there are other ways you can save some cash and find cheap car insurance.


Shop around

MoneyGeek estimates you can save up to 47% when you shop around. We recommend getting at least three car insurance quotes from different companies to make a fair comparison. Also, consider which company’s customers have had fewer complaints. The last thing you need when you’re in a car accident is subpar customer service. You can also shop for car insurance by company reviews with MoneyGeek.


Go for a higher deductible

Increasing your deductible from $200 to $500 could save you 15–30%, and increasing your deductible to $1,000 could save as much as 40%. Just make sure you put aside enough money to cover the deductible in case you need it.


Apply for Discounts

There are many car insurance discounts available to drivers looking to lower their car insurance premiums. This includes discounts for safety features, safe driving, good student discounts, or discounts for bundling multiple cars, or home and auto insurance. For example, if you bundle your home and auto insurance from the same insurer, you can save up to 15%, depending on the company.


Improve your credit score

You need to work on this over time, but making payments on time, managing your credit wisely and keeping balances as low as possible can help you save money on car insurance. Insurers see those with good credit as a reasonable risk.


Check out insurance costs before you buy a car

High-performance sports cars and luxury cars are more expensive to insure. SUVs are usually less expensive. Also, take note of safety features. Options like adaptive cruise control and lane detection assist can lower insurance costs.

If you're looking to get car insurance for no money down, you're looking to get coverage quickly and inexpensively. Even though you will need to come up with some money to get your car insured, you can still do so rapidly and affordably. You have options for getting car insurance right away, even if you have had trouble with your credit or past accidents. The important thing is to shop around, get several quotes and look for a monthly payment you can afford. Insurance is not an option in most states, but you'll be glad you took some time to find the cheapest car insurance.

FAQs About No Deposit Insurance

Whether you're looking to make monthly payments or find the cheapest car insurance rates, learn more with frequently asked questions about no-money-down car insurance.

About Gail Kellner

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Gail Kellner is a freelance writer specializing in personal finance and insurance. She grew up outside of Hartford, Connecticut, the insurance capital of the world. She has written for Bankrate, Bravo Policy, Retireable and many other publications.