True "no deposit" or “no down payment” car insurance doesn't exist. When people search for "no down payment" car insurance, they're usually looking for one of two things: car insurance with low monthly rates that minimize the initial payment, or payment timing strategies like using a credit card to delay the payment by 30 days. This guide helps you find both.
Cheapest Car Insurance With No Down Payment or Deposit
Updated: October 23, 2025
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Key Takeaways
"No down payment" or “no deposit” car insurance can be misleading. All car insurance companies require your first month's premium upfront to activate coverage. True no-down-payment insurance doesn't exist from reputable insurers, but this payment covers your first month of insurance.
GEICO offers the cheapest car insurance at $43 monthly, followed by Travelers at $50 and State Farm at $52 for minimum coverage.
Pay with a credit card to get immediate coverage while giving yourself 30 extra days before the payment is due. Compare rates from multiple insurers to find the lowest monthly premium.
Car Insurance With No Deposit: Myth vs. Reality
EXPERT TIP: YOUR FIRST PAYMENT ISN'T A DEPOSIT
Your initial car insurance payment covers your first month of coverage, not a refundable deposit. This means comparing rates directly reduces what you pay upfront. A policy costing $43 monthly requires $43 to start, while one costing $100 monthly requires $100. Finding the cheapest monthly rate is the most effective way to minimize your initial payment.
Cheapest Low-Down Payment Car Insurance
GEICO has the lowest monthly rate at $43 monthly for minimum coverage, making it the most affordable insurance option for drivers who need to minimize their first payment. Travelers ties GEICO at $98 for cheap full coverage. MoneyGeek analyzed over 2 million quotes to find the cheapest car insurance policies with low down payments from top-rated companies.
Company | Best For | Minimum Monthly Premium | Full Coverage Monthly Premium | Standout Feature |
|---|---|---|---|---|
GEICO | Most affordable minimum coverage | $43 | $98 | User-friendly mobile app with payment management |
Travelers | Cheapest full coverage | $50 | $98 | Many customization options |
State Farm | Best overall service and coverage | $52 | $124 | Superior claims satisfaction ratings |
Nationwide | Best for pay-per-mile options | $96 | $179 | SmartRide and SmartMiles programs |
Progressive | Best for high-risk drivers | $68 | $216 | Name Your Price tool |
Cheapest Low Down-Payment Car Insurance by State
GEICO offers the cheapest car insurance in 15 states with an average monthly premium of $61 where it's the most affordable option. Erie Insurance ranks second, providing the lowest rates in 5 states with an average premium of $59 in those markets, while Farm Bureau comes in third, leading in 4 states with an average rate of $57 where it's cheapest.
Both Erie and Farm Bureau are regional insurers, so check if they operate in your area when shopping. Regional companies often offer better rates than major national carriers in their coverage zones.
| Alabama | Cincinnati Insurance | $42 | $-58 |
| Alaska | Western National Insurance | $47 | $-44 |
| Arizona | Geico | $63 | $-29 |
| Arkansas | Alfa Insurance | $36 | $-60 |
| California | Geico | $53 | $-43 |
| Colorado | Geico | $62 | $-34 |
| Connecticut | Geico | $61 | $-38 |
| Delaware | Geico | $67 | $-50 |
| District of Columbia | Erie Insurance | $77 | $-56 |
| Florida | Geico | $62 | $-37 |
| Georgia | Central Insurance | $47 | $-44 |
| Hawaii | Geico | $33 | $-21 |
| Idaho | Geico | $72 | $-33 |
| Illinois | Erie Insurance | $50 | $-40 |
| Indiana | Hastings Insurance | $23 | $-61 |
| Iowa | IMT Insurance | $51 | $-40 |
| Kansas | Shelter Insurance | $60 | $-39 |
| Kentucky | Geico | $63 | $-36 |
| Louisiana | Geico | $53 | $-36 |
| Maine | MMG Insurance | $35 | $-73 |
| Maryland | Erie Insurance | $54 | $-39 |
| Massachusetts | Safety Insurance | $32 | $-36 |
| Michigan | Farm Bureau | $43 | $-42 |
| Minnesota | Westfield Insurance | $25 | $-47 |
| Mississippi | Farm Bureau | $65 | $-36 |
| Missouri | Kemper | $64 | $-24 |
| Montana | Geico | $72 | $-46 |
| Nebraska | Farmers Mutual Ins Co of NE | $19 | $-52 |
| Nevada | Geico | $60 | $-19 |
| New Hampshire | MMG Insurance | $31 | $-54 |
| New Jersey | Geico | $63 | $-29 |
| New Mexico | Central Insurance | $52 | $-45 |
| New York | NYCM Insurance | $33 | $-30 |
| North Carolina | Erie Insurance | $57 | $-35 |
| North Dakota | North Star Insurance | $51 | $-57 |
| Ohio | Cincinnati Insurance | $42 | $-46 |
| Oklahoma | American Farmers & Ranchers | $46 | $-42 |
| Oregon | Country Financial | $47 | $-31 |
| Pennsylvania | Westfield Insurance | $28 | $-49 |
| Rhode Island | Quincy Insurance | $67 | $-39 |
| South Carolina | Farm Bureau | $60 | $-42 |
| South Dakota | Farmers Mutual Ins Co of NE | $21 | $-63 |
| Tennessee | Erie Insurance | $57 | $-37 |
| Texas | Geico | $57 | $-40 |
| Utah | Farm Bureau | $58 | $-47 |
| Vermont | Union Mutual Insurance | $18 | $-78 |
| Virginia | Auto Owners | $49 | $-35 |
| Washington | California Causality | $57 | $-29 |
| West Virginia | Westfield Insurance | $39 | $-68 |
| Wisconsin | West Bend Mutual | $48 | $-36 |
Ways to Lower Your Down Payment or Deposit
Three strategies cut your first car insurance payment: comparing rates, choosing smart coverage levels and stacking discounts. Rate shopping alone can reduce your first payment by 25% to 50%. You can also use credit card payments to minimize upfront costs.
Compare rates from multiple insurers
Shopping around reduces your first payment since most insurers only require one month upfront. Insurance rates vary between companies. Getting quotes from at least three insurers takes minutes but can save you hundreds annually. The cheapest company for your neighbor might not be cheapest for you, since insurers weigh factors like age, driving record and credit score differently. A $20 monthly difference means $20 less for your first payment and $240 less per year.
Choose smart coverage levels and discounts
State minimum coverage keeps your first payment lowest but leaves you exposed to large out-of-pocket costs in serious crashes. Higher liability limits often cost just $10 to $20 more monthly but give you better financial protection.
Stack these discounts to reduce your first payment immediately:
- Paperless billing: 5% to 8% off
- Autopay: 3% to 5% off
- Bundling: 10% to 25% off (if you have renters or homeowners insurance)
These discounts lower your first payment without reducing coverage.
Use a credit card for immediate coverage
Paying your first month's premium with a credit card gives you immediate coverage while extending your payment deadline by up to 30 days. This works well if you need insurance today but don't get paid until later in the month. Most major insurers accept credit cards without fees.
How Car Insurance Payments Work
Car insurance payments are usually paid monthly, semi-annually or annually. Monthly payments require less cash upfront but cost more overall due to processing fees of $3 to $8 per month. Paying semi-annually or annually avoids these fees and can save you money. The lowest monthly payment option may be the most expensive over time.
Payment Frequency | Pros | Cons | Best For |
|---|---|---|---|
Monthly | Lowest upfront cost and easier budgeting | Usually includes processing fees ($3-8 monthly) | Tight budgets, first-time buyers |
Semi-Annual | No processing fees with a moderate upfront cost | Requires larger initial payment | Drivers wanting to balance cost and convenience |
Annual | Cheapest overall cost and no processing fees | Highest upfront payment | Drivers with available cash wanting maximum savings |
MONEYGEEK EXPERT TIP: DISCOUNTS FOR PAYING IN FULL
Monthly payments provide budget flexibility, but paying your full premium upfront can qualify you for discounts that monthly payments don't offer. If you can't afford a large down payment, consider using a credit card and paying it off quickly to avoid interest.
Help With Car Insurance Payments
If you can't afford car insurance even with the cheapest rates, see our guide on low-income car insurance options for state assistance programs and financing solutions like OCHO.
Cheap No-Deposit Auto Insurance: Bottom Line
True no-down-payment car insurance doesn't exist. All insurers require your first month's premium upfront to start coverage, but you can find affordable options through smart shopping. The cheapest monthly rates start at $43 from GEICO, followed by Travelers at $50 and State Farm at $52. Comparing quotes can reduce your first payment by 25% to 50%.
No-Down-Payment Car Insurance: FAQ
We answered some frequently asked questions about no down payment and no deposit car insurance to help you understand how it works and how to get cheaper rates.
Why do you have to put a down payment on car insurance?
All auto insurance companies require payment to start coverage. This covers the first month of insurance coverage rather than a deposit for the annual policy. This first payment reduces risk and confirms the payment method.
What happens if I miss a payment on my monthly insurance plan?
Most insurers offer a 10 to 30-day grace period for active coverage. If payment isn't received by then, your policy may end, leaving you uninsured. Set up payment reminders to avoid this situation.
Can I switch payment plans mid-policy?
Most insurance companies allow payment plan changes mid-policy. Contact your provider or use their online portal to adjust from monthly to quarterly or pay in full. Some companies offer discounts for switching to lump-sum payments.
Will using a credit card for my insurance payment affect my credit score?
Using a credit card for insurance won't impact your credit score unless you carry a balance. This approach gives you an extra 30 days before paying out of pocket. Pay the card balance in full by the due date to avoid interest charges. Most major insurers accept credit cards without fees.
No-Down-Payment Car Insurance: Our Review Methodology
We analyzed over 2 million quotes from 607 companies across 3,500+ ZIP codes to find insurers with the lowest first-month payments. Our research focused on upfront costs rather than annual premiums.
We tested rates using a base profile of a 40-year-old male with a clean driving record, then adjusted for different locations, ages, credit scores and driving histories. We compared both minimum coverage (state liability limits) and full coverage (100/300/100 liability with comprehensive and collision).
Learn more about MoneyGeek's auto insurance methodology.
Auto Insurance With Zero Down: Related Articles
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.