You can’t get car insurance without making an initial payment—but many major insurance companies offer monthly payment plans and discounts that can make the cost to activate your coverage as low as $73 or less.

You’ll always need to make an initial payment to activate a car insurance policy.
Opting for monthly payments and stacking discounts can lower your upfront costs.
The average cost to start a car insurance policy is $73 for minimum coverage and $128 for full coverage.
MAPFRE, Clearcover, and Nationwide are three of the best companies for low down payment car insurance.
Companies advertising “first month free” auto insurance are scammers after your personal information.

How to get auto insurance with a low down payment

The reality: You’ll always need to make a payment before activating a car insurance policy—even if it’s just the first month’s payment. True “zero deposit” car insurance with no money upfront doesn’t exist outside the world of scams.

The alternative: Look for low deposit car insurance by comparing car insurance quotes from multiple providers, asking about monthly payment options, and stacking discounts. While splitting your premium into monthly installments will raise the overall cost of coverage, it’ll keep your up-front costs low if you need

quick, cheap coverage

How to get it: Start by

comparing auto insurance rates

from at least three to five

insurance providers

to find the company with the lowest car insurance premium for you. Look for:

Companies that offer monthly payment plans (like Allstate, Nationwide, and Progressive)

Companies with strong discounts that match your profile (like accident-free discounts or good student discounts)

Companies with responsive customer service teams

Key Takeaway True no deposit car insurance doesn’t exist outside of scams. Instead of “no down payment car insurance,” start looking for low down payment car insurance.

What the experts say

"A down payment is always required to start a new car insurance policy, but there are ways to make it less expensive.

First, look at what service fees you can avoid by setting your policy for automatic payments with a bank account instead of using a debit or credit card. Next, look at your coverages and remove extras that you can add back later, like towing and lockout coverage and rental reimbursement.

Finally, split up the down payment if necessary. Some providers will let you spread the payments out over different bank accounts and even allow a friend or family member to help make a partial payment on your behalf."

- Shannon Martin, licensed insurance agent

Pay-per-mile car insurance: The key to cheap no-deposit insurance?

If you need to lower your car insurance costs and don’t drive very often,

pay-per-mile auto insurance coverage

could be the key to avoiding a big lump-sum down payment.

In a regular car insurance policy, you’ll be charged for at least the first month up front—and, in some cases, you’ll pay extra to account for the cost of opening a policy. But with a pay-per-mile policy, you only pay a daily rate as low as $1.50 per day, plus additional costs for every mile you drive.

The best pay-per-mile car insurance companies

	Allstate Milewise	Nationwide SmartMiles	Metromile	Mile Auto
Sample base rate	$1.50 per day	$60 per month	$29 per month	$48 per month
Sample per-mile rate	$0.06	$0.07	$0.06	$0.08
How it's tracked	Plug-in device	Plug-in device or connected car	Plug-in device	Odometer photo
Availability	21 states	45 states	8 states	11 states
Average reported savings	25% to 50%	22%	47%	30% to 40%

Who it’s not for

If you use your car every day and drive an average of 35 miles per day or more, pay-per-mile insurance likely won’t save you any money.

Who it’s for

Anyone who drives less than about 10,000 miles per year, or 27 miles per day, is a good candidate to save with pay-per-mile insurance. Remote workers, stay-at-home parents, and anyone with a short commute or access to public transportation can use pay-per-mile insurance.

The best car insurance companies for low deposit auto insurance

We ran the numbers and identified the five cheapest car insurance companies for drivers looking for minimum liability insurance with a low down payment:

Insurance company	Average monthly rate
Mapfre	$73
Metlife	$90
Trexis	$91
Nationwide	$98
Aspire Advantage	$104

An important disclaimer: Some insurance companies won’t allow monthly payments, while others only allow drivers without any

insurance lapses

to make monthly payments. Check before you sign up to see what kind of payment plan is offered.

Best car insurance companies for cheap full coverage auto insurance

If you need full coverage auto insurance, the following companies are your best bet:

Insurance company	Average monthly rate
Mapfre	$128
Nationwide	$173
Clearcover	$177
Commonwealth Insurance	$180
National General	$180

Why Nationwide is the best car insurance company for drivers with poor credit

Nationwide doesn’t just have some of the lowest monthly rates out of any insurer—they’ll also keep your annual premium low if your credit score drops, unlike most major insurers.

New research from the Consumer Federation of America reveals that GEICO and State Farm charged policyholders with poor credit 91% more and 225% more, respectively, than drivers with excellent credit—even if the poor-credit drivers had a perfect driving record.

By comparison, Nationwide raises rates by an average of just 57% for drivers with poor credit.

MORE:

Compare the best online quotes for car insurance

Avoid “first month free” scams

If you see anyone promising to cover your car with the first month entirely free, that’s a scam. No legitimate insurance company offers coverage without any kind of payment upfront.

To avoid

car insurance scams

, follow these tips:

Never pay for quotes: Any reputable insurance company offers free quotes to prospective policyholders.

Avoid “one day car insurance” scammers: The shortest policy length offered by legitimate car insurance providers is six months.

Trust your gut: If you’re feeling pressured by an insurance agent or broker, don’t buy the policy unless you’ve read the fine print and confirmed that everything's above board.

Learn more: Why do car insurance companies require a down payment?

Car insurance providers are all about risk. When setting your rate, insurance companies will analyze a ton of factors that essentially help them to evaluate how much risk you pose as a policyholder.

An insurance down payment offsets risk to your insurance provider.

Key risk factors for car insurance

include:

Driving record: A history of accidents and violations tells insurance companies that you’re a high-risk driver likely to generate claims. A clean driving history, on the other hand, shows them you’re likely to cost them less—so they’ll often charge less!

Continuous coverage: Having a lapse of insurance coverage for any reason can negatively impact your rates—continuous coverage signals to the insurance companies that you are a good risk and have responsible payment habits.

Age:

Young drivers

, especially teens, have the highest statistical rate of accidents and violations. Insurance companies hike up rates for drivers under age 25.

Gender: Statistics also show that male drivers have a higher rate of accidents, violations, and claims. You can expect your car insurance rates to reflect that.

ZIP code: The rate of accidents, thefts, and weather damage where you live can all affect the cost of car insurance, especially if you have

full coverage

Vehicle: Your vehicle’s make and model, size, engine type, safety ratings, and value all influence the cost of a policy.

Credit score: Credit is a measure of your ability to pay your bills, so insurance companies typically give the best rates and payment plans to drivers with good credit.

Mileage: The

less you drive

, the less likely you are to generate claims.

While you can’t find car insurance with no deposit, understanding the factors that go into setting your rate can help you find the lowest monthly car insurance payment. Compare quotes from several auto insurance companies before you put down money on a policy.

Six ways to shrink your car insurance down payment

There’s no such thing as free car insurance. But with a few tips and hacks, you can lower your total premium and find the right coverage at a price you can live with. Here’s how.

1. Compare auto insurance quotes

The only way to lower your car insurance down payment is to compare rates from multiple insurance companies. Use a

trusted insurance broker or comparison tool

Jerry

to quickly compare rates and find affordable car insurance based on your driver profile.

The app will show you the first month’s premium for three different levels of coverage—Basic, Standard, and Preferred—along with potential discounts and tips to tailor your coverage options to your needs.

2. Manage your budget

Take stock of your budget and see if you can free up extra cash for the payments you need to make—especially that larger first payment.

If your car is financed,

auto loan refinancing

could bring down your monthly car payment so that you can afford the insurance you need. Refinancing isn’t for everyone, but if you purchase car insurance through Jerry, you’ll be able to see any eligible refinancing offers in the app.

3. Opt for a lower coverage level

While it’s a good idea to buy

full coverage car insurance

if you can afford it—or if the lender that issued your auto loan requires it—dropping full coverage or picking a lower liability limit could reduce your insurance down payment.

Know

what car insurance is required by law in your state

and check the terms of your auto loan before you start shopping.

4. Change your payment date

If you’re looking for no deposit auto insurance to get through a tight time, ask about changing your payment date once you’ve signed up for a policy.

Some insurance companies will allow you to move your due date so that you’re set up to make your payment on time. You should also look into your company’s grace period for missed payments.

5. Choose a higher deductible

If you’re looking for full coverage car insurance without a large down payment, consider choosing a higher deductible.

The deductible is the set amount you’ll pay out of pocket before your coverage kicks in on a collision or comprehensive claim, and the higher it is, the less you’ll pay to start and maintain the policy.

But be careful with this one. Never choose a deductible that’s higher than what you could realistically come up with in a week in the event of an accident!

6. Look for discounts

Car insurance discounts don’t start and stop with

bundling home and auto policies

. While that’s the discount you’ll hear most about on TV, most insurance companies offer way more discounts that could save you a ton on your insurance plan—especially if you stack them! Here are just a few of the most popular discounts:

Discount	Description	Average savings
Safe driver discount	Maintaining a clean driving record or installing a telematics device to track your driving habits could earn you a discounted rate.	5% - 30%
Multi-car discount	If you have multiple cars on the same policy, many companies will knock a percentage off your rate.	10% - 20%
Driver training discount	For teen drivers, taking an approved driver education course could result in premium savings.	8% - 10%
Good student discount	Drivers under 25 years old who are enrolled in school full time and have at least a 3.0 GPA or B average can qualify for discounts.	5% - 25%
Continuous insurance discount	If you’ve never had a lapse in coverage, insurers will reward your consistency with discounts.	10% - 15%
Electronic funds transfer (EFT) discount	Transferring funds directly from your bank rather than paying with a credit or debit card or check could earn you a slightly discounted rate.	2% - 3%
Responsible payer discount	If you’re paying monthly, an on-time payment every month for 12 months could qualify you for a lower rate.	5%

Expert tip The main popular car insurance discount that typically isn’t compatible with a monthly payment plan is a

paid in full discount

. If you’re looking to lower your overall insurance costs but can afford a bigger up-front payment, consider paying in full to secure that lower premium.

FAQs

Can you get insurance and pay later?

You can’t get car insurance without making any initial payment, but you don’t always need to pay your total premium in full. Most insurers allow monthly payment plans, which can keep the upfront cost of a policy low.

What is the least amount of car insurance you need?

The minimum amount of car insurance required to legally drive differs from state to state, but it typically includes a small amount of bodily injury liability insurance and property damage liability insurance.

What is the initial payment of insurance?

Your first car insurance payment covers the first portion of your policy term, and in some cases may also include expenses associated with opening a policy, such as motor vehicle record checks.

What is the cheapest car insurance company in the US?

USAA consistently offers the cheapest rates of any auto insurance provider in the United States—but USAA only offers auto insurance policies to military members, veterans, and their immediate family. If you don’t qualify for USAA insurance, comparing quotes is the best way to find the cheapest insurance company for your profile.

What is the difference between full coverage and liability only?

Liability-only car insurance is the minimum requirement in most states and the cheapest option for car insurance. However, most drivers need some amount of collision and comprehensive coverage. The combination of collision and comprehensive with basic liability coverage is often called a “full coverage” car insurance policy.

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