Cheapest Car Insurance With No Down Payment or No Deposit

All car insurance companies require an upfront payment covering your first month of coverage, meaning true zero down car insurance or completely free first-month coverage doesn't exist.

But you can get very cheap car insurance with minimal upfront costs by shopping around for the most affordable car insurance quotes with low or no deposit requirements, starting at $43 from GEICO for the average driver and with options as low as $20 in some cases depending on your location and driver profile.

Get cheap car insurance quotes with low down payment options below.

Written by Mark Fitzpatrick

Updated: December 19, 2025

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Key Takeaways

All car insurance companies require your first month's premium as a down payment to activate coverage. True 0 down car insurance or first-month-free policies don't exist, but you can find very cheap options. Read more.

If you're looking for low down payment car insurance or zero down payment options, GEICO offers the cheapest car insurance with no down payment beyond the first month's premium at $43 monthly, followed by Travelers at $50 and State Farm at $52 for minimum coverage. Very cheap car insurance quotes with $20 down are available in some low-cost areas for drivers with clean records. Read more.

If you need car insurance now but want to pay later with no deposit, use a credit card for your first payment. This gives you 30 extra days before payment is due. Just pay your credit card on time to avoid interest charges.

Car Insurance With No Deposit or No Down Payment: Myth vs. Reality

True zero down car insurance or completely deposit-free policies don't exist. Your initial car insurance payment covers your first month of coverage, which companies collect upfront. A policy costing $43 monthly requires $43 upfront plus some additional fees that come from starting the policy.

Finding the cheapest monthly rate is the most effective way to minimize your initial payment. While you can't get car insurance first month free with no deposit, you can find very cheap car insurance with minimal upfront costs.

When people search for cheap car insurance with no down payment, they're usually looking for one of two things: low down payment car insurance that minimizes 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 and shows you how to get cheap car insurance quotes with no deposit requirements beyond your first month's premium.

Cheapest Low-Down Payment Car Insurance

GEICO has the lowest monthly rate at $43 for minimum coverage, making it the cheapest car insurance option with no down payment beyond the first month's cost for drivers who need to minimize their initial payment. Travelers ties GEICO at $98 as the best option for cheap full coverage.

MoneyGeek analyzed over 2 million quotes to find the cheapest car insurance policies with low down payments and 0 down options from top-rated companies. These very cheap car insurance quotes help you get covered quickly without a large upfront deposit.

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 low down payment car insurance in 15 states with an average monthly premium of $61 where it's the most affordable option. Erie ranks second, providing the lowest rates in five states with an average premium of $59 in those markets, while Farm Bureau comes in third, leading in four 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.

Here are some examples of how the cheapest down payment insurance companies differ across big markets, which show the importance of shopping around based on your location:

The cheapest low down payment car insurance in Florida: GEICO ($62 per month)
The cheapest low down payment car insurance in Georgia: Central ($47 per month)
The cheapest low down payment car insurance in Pennsylvania: Westfield ($28 per month)
The cheapest low down payment car insurance in South Carolina: Farm Bureau ($60 per month)
The cheapest low down payment car insurance in Texas: GEICO ($57 per month)


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.

1
Compare Rates from Multiple Insurers
Shopping around reduces your first payment since most insurers only require one month upfront. Insurance rates vary between companies. By getting quotes from at least three insurers, you can get the cheapest car insurance for you. A $20 monthly difference means $20 less for your first payment and $240 less per year.
2
Choose Smart Coverage Levels
State minimum coverage keeps your first payment low but leaves you exposed to large out-of-pocket costs in serious crashes. Higher liability limits often cost just $10 to $20 more per month, but provide better financial protection.
3
Apply for Discounts
Stack discounts that are easy to qualify for, such as paperless billing, autopay and bundling, to get anywhere from 2 to 25% off. These can lower your first payment without reducing coverage.
4
Use Payment Timing Strategies
Smart payment timing gives you more flexibility without changing your coverage. Paying with a credit card provides immediate coverage while extending your actual payment deadline by 30 days. You get insured today and your money stays in your account until the credit card bill arrives.

Some insurers also offer grace periods of 10 to 30 days after your payment due date before canceling coverage. This isn't ideal for long-term planning, but provides a buffer if you're between paychecks.

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.

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.

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

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.

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