Updated: May 19, 2025
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"No down payment" or “no deposit” car insurance can be misleading. All insurers require initial payments to start coverage, but the plans below let you pay month-to-month instead of big annual payments.
Credit card payments allow for immediate coverage while giving you 30 extra days to pay..
GEICO has the cheapest state minimum coverage for $45 per month on average and less in certain states. Travelers is the cheapest for full coverage at $92 per month. State Farm is our top pick for low down payments, affordability and quality. All three companies have payment plans and accept credit cards.
While advertisements for "no down payment" car insurance sound appealing, "no deposit" car insurance doesn't exist. All reputable car insurance companies require an initial payment when your policy starts.
If your are like most of our users reading this page who are struggling to make your initial car insurance payment, there is the good news:
Unlike security deposits for apartments or other services, your initial payment isn't an extra fee, it is your first premium payment that counts toward your total policy cost.
Insurers typically only require your first month's premium to get started—not a large percentage of the annual premium. This means you can get fully insured for as little as $11 depending on your driver profile.
Finding cheaper insurance reduces your down payment. Our comparison tools can help you find policies 25-50% cheaper than your current rate based on your driving history, making that first payment significantly more affordable.
Despite the low initial payment, you get immediate coverage. Make your first payment today (even with a credit card), and you can legally drive with insurance that has no waiting period.
There are several ways to lower your down payment.
Insurers like State Farm, GEICO and Nationwide offer plans with initial payments as low as 10-15% of your total annual insurance cost. See the companies below that allow you to spread payments over 12 months with minimal fees.
Compare quotes from multiple companies—rates can vary by hundreds of dollars for identical coverage.
Balance protection with cost by selecting appropriate coverage. Minimum liability can save 30-50% for older vehicles, while newer cars need more protection. Apply immediate discounts like paperless billing (8%), auto-pay (5%), and good student discounts to your first payment.
Most major insurers accept credit cards, giving you immediate coverage while effectively extending your deposit deadline by up to 30 days. This buys you extra time to gather funds without driving uninsured.
Your initial car insurance payment typically ranges from 10-20% of your total policy cost. This payment isn't an extra fee and it counts toward your total policy cost. Most companies will allow your split the remaining cost of your policy into monthly payments.
Coverage Level | Estimated Down Payment |
|---|---|
State Minimum Liability | $30-$90 |
100/300/100 Liability-only | $45-$110 |
50/100/50 Full Coverage | $75-$180 |
100/300/100 Full Coverage | $90-$220 |
The good news is that many major insurers have flexible payment options to make this initial payment more manageable:
Company | Payment Flexibility | Features |
|---|---|---|
Nationwide |
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State Farm |
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GEICO |
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Travelers |
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Allstate |
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Monthly payments provide flexibility for your budget. However, paying your full premium upfront might 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.
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.
Finding no-down-payment car insurance isn't realistic, but you can make the initial payment more manageable. Follow these strategies to minimize your first payment and reduce your overall premiums:
Gather quotes from at least three insurers. Some companies offer low down payment options or seasonal promotions with reduced initial costs and most have very flexible payment plans.
Consider lowering your coverage limits with minimum coverage insurance or opting for higher deductibles to reduce the first month's payment. If your car is over 10 years old, you might be paying too much for full coverage. While minimum liability-only insurance meets legal requirements, it only covers damage you cause to others and doesn't protect your own vehicle or medical expenses. If you purchase minimum coverage you can change your policy to a full coverage policy later.
Raising your collision and comprehensive deductibles from $250 to $500 could save you 15% to 30%, and increasing them to $1,000 could save up to 40%. Ensure you set aside enough money to cover the deductible if your car is damaged.
These discounts directly lower your initial payment amount:
Pro Tip: Always ask about available discounts—many aren't automatically applied and could save you 10-20% immediately.
Many insurers use credit scores (except in California, Hawaii, Massachusetts, and Michigan) to determine payment options and policy cost. 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.
Driving a car that's less expensive to insure can reduce your policy cost and first monthly payment. Vehicles that are cheaper to repair or have better safety ratings typically have lower insurance costs.
Sports and luxury cars cost more to insure, while SUVs and low cost sedans usually cost less. Safety features like adaptive cruise control and lane detection assist can also help lower rates.
Many insurance companies offer discounts or lower premiums to customers who purchase multiple policies. Bundling home and auto policies or insuring all family cars under one policy often qualifies for discounts.
While focusing on the down payment, consider the policy's total annual cost. Paying monthly might result in higher total cost for the policy.
Consider paying for minor damages out-of-pocket rather than filing claims. Small claims can lead to higher premiums over time, potentially costing you much more than the repair itself. Experts recommend getting repair estimates first to determine if filing a claim makes financial sense
MoneyGeek analyzed over 2 million quotes to determine the very cheapest car insurance policies with low down payments from top-rated companies. Here are the best companies for very cheap low deposit car insurance.
Company | Best For | Minimum Monthly Premium | Full Coverage Monthly Premium | Standout Feature |
|---|---|---|---|---|
GEICO | Most Affordable Minimum Coverage | $45 | $98 | User-friendly mobile app with payment management |
Travelers | Cheapest Full Coverage | $46 | $92 | Numerous customization options |
State Farm | Best Overall Service & Coverage | $45 | $101 | Superior claims satisfaction ratings |
Nationwide | Best for Pay-Per-Mile Options | $48 | $93 | SmartRide and SmartMiles programs |
Progressive | Best for High-Risk Drivers | $45 | $107 | Name Your Price tool |
Car insurance costs vary significantly by location due to differences in state regulations, accident rates, population density, weather patterns, and regional repair costs.
GEICO is the cheapest low 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.
| Alabama | Cincinnati | $19 | $226 |
| Alaska | Allstate | $38 | $458 |
| Arizona | Mercury | $33 | $395 |
| Arkansas | Southern Farm Bureau | $24 | $288 |
| California | CSAA | $11 | $131 |
| Colorado | American National | $24 | $283 |
| Connecticut | GEICO | $36 | $435 |
| Delaware | Travelers | $39 | $464 |
| District of Columbia | Chubb | $31 | $372 |
| Florida | GEICO | $53 | $633 |
| Georgia | COUNTRY Financial | $37 | $440 |
| Hawaii | GEICO | $19 | $223 |
| Idaho | American National | $16 | $187 |
| Illinois | Mercury | $23 | $274 |
| Indiana | Auto-Owners | $20 | $238 |
| Iowa | Progressive | $14 | $166 |
| Kansas | Auto-Owners | $28 | $337 |
| Kentucky | Cincinnati | $25 | $296 |
| Louisiana | Louisiana Farm Bureau | $39 | $471 |
| Maine | Vermont | $23 | $278 |
| Maryland | State Farm | $53 | $642 |
| Massachusetts | State Farm | $18 | $221 |
| Michigan | Westfield | $31 | $369 |
| Minnesota | Westfield | $26 | $316 |
| Mississippi | Mississippi Farm Bureau | $25 | $296 |
| Missouri | Progressive | $36 | $433 |
| Montana | State Farm | $11 | $135 |
| Nebraska | American National | $14 | $163 |
| Nevada | COUNTRY Financial | $38 | $459 |
| New Hampshire | Hanover | $11 | $133 |
| New Jersey | GEICO | $40 | $478 |
| New Mexico | Progressive | $30 | $363 |
| New York | Kemper | $54 | $646 |
| North Carolina | North Carolina Farm Bureau | $22 | $265 |
| North Dakota | Nodak | $19 | $232 |
| Ohio | Nationwide | $19 | $226 |
| Oklahoma | Progressive | $24 | $289 |
| Oregon | COUNTRY Financial | $37 | $443 |
| Pennsylvania | Auto-Owners | $25 | $305 |
| Rhode Island | Amica | $39 | $463 |
| South Carolina | American National | $25 | $297 |
| South Dakota | Farmers Mutual of Nebraska | $15 | $184 |
| Tennessee | Auto-Owners | $21 | $256 |
| Texas | Texas Farm Bureau | $28 | $339 |
| Utah | Farmers Union | $33 | $396 |
| Vermont | State Farm | $18 | $218 |
| Virginia | Virginia Farm Bureau | $26 | $310 |
| Washington | PEMCO | $29 | $349 |
| West Virginia | Westfield | $31 | $371 |
| Wisconsin | AAA | $16 | $194 |
| Wyoming | GEICO | $15 | $176 |
Many car insurance companies let you purchase a policy online, making it easier than ever. Below is a simple guide to finding the best cheap car insurance.
Evaluate your needs as a driver to determine the right coverage, which will also impact your insurance rate. How much car insurance you need depends on your state's minimum coverage requirements, your car's value and your financial situation.
Minimum liability (30-50% cheaper) only covers damage you cause to others—ideal for older vehicles or tight budgets, but offers limited protection. State minimums like 25/50/25 meet legal requirements but may leave you exposed to costly claims.
Full coverage adds protection for your own vehicle against accidents, theft, and weather damage—recommended for newer cars and required for leased/financed vehicles.
The best car insurance companies balance quality and cost. Check available discounts, customer service reviews and average rates. Your best option depends on your driving record and personal situation. Consider how your needs affect the coverage you require.
Insurers have different rates, even for the same driver profile. The best way to find the right option is to compare quotes. Get personalized quotes from at least three auto insurance companies. Also, compare coverage levels and relevant discounts. Review the fine print to avoid any issues or unexpected costs.
Once you choose the best low down payment car insurance, make an initial payment to activate your policy. Paying monthly premiums may be a good option if you want the cheapest upfront cost.
For drivers struggling to afford even the initial payment on car insurance, there are several assistance options available. Here's where to find help:
Only a few states currently offer government-sponsored insurance programs for low-income drivers:
What is OCHO? A digital insurance agency that offers interest-free financing for car insurance down payments while working with carriers like Progressive, Dairyland, and National General.
Pros:
Cons:
Read More: What if you can't afford car insurance?
Below, we answer 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.
All auto insurance companies require some form of payment to start coverage, but this is typically. cover the first month of insurance coverage, rather than a deposit for the annual policy. This first payment is a security to reduce risk and confirm the payment method. However, those seeking the cheapest car insurance can find policies with low upfront costs. Those who are struggling to pay can look at low-income insurance options to help maintain legal coverage.
No deposit and no down payment mean the same thing in car insurance. While some insurers advertise no down payment, all reputable insurers require an upfront payment covering a portion of your policy cost.
Policyholders can choose how to make insurance payments. Options typically include monthly, semi-annual or annual payments.
GEICO offers the cheapest no-down-payment car insurance, with minimum coverage averaging $534 annually.
While providers require an upfront payment, you can still find low-down-payment car insurance. Many insurers offer online tools to help you compare rates and request quotes. Some even offer same-day insurance.
Yes, you can pay a portion of your policy cost. However, paying in full for the entire policy term often comes with a small discount, potentially saving you money in the long run.
Pay-as-you-go insurance can benefit infrequent drivers by charging based on actual usage and adjusting rates based on driving habits and risk profile. While this can save money, some policies might lack comprehensive coverage, and poor driving could trigger penalties. Pay-per-mile coverage works similarly but charges based on mileage, making it cost-effective for those who don't drive much.
Yes, but you'll likely pay higher costs. Some insurance companies specialize in high-risk coverage, and state-sponsored programs may offer options regardless of credit score.
Some insurers charge installment fees for monthly payments, which can add $3-$10 per payment. Always ask about any additional fees before finalizing your policy.
Most insurers can provide same-day coverage once you make your first payment, with electronic proof of insurance available immediately after purchase.
Monthly payments typically cost 5-10% more annually due to installment fees and missed discount opportunities compared to paying in full upfront.
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, but pay the card balance in full by the due date to avoid interest charges. Most major insurers accept all major credit cards without fees.
Most insurers offer a 10-30 day grace period during which coverage remains active. If payment isn't received by then, your policy may end, leaving you uninsured. Set up payment reminders to avoid this situation.
Yes, 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.
Most major insurance companies offer 5-10% discounts for enrolling in autopay programs. This not only saves money but ensures you never miss a payment.
Using a credit card when you're short on funds gives you immediate coverage while effectively delaying payment by up to 30 days (until your card's billing cycle ends). This can be especially helpful if you're between paychecks but need insurance right away to drive legally. Just remember that if you can't pay the full balance when due, you'll incur interest charges that can significantly increase the overall cost of your insurance.
Data Depth and Overview
MoneyGeek analyzed over 2 million quotes from 607 companies across over 3,500 ZIP codes to find the cheapest car insurance for various driver profiles.
Driver Profiles
We created an average driver profile, including:
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 Amounts
Full coverage includes:
Minimum coverage includes:
Learn more about MoneyGeek's auto insurance methodology.
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.
