Very Cheap Car Insurance With No Deposit

Find out if you're getting ripped off on your car insurance in less than two minutes.
No long forms · No spam · No fees
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
It’s impossible to get car insurance without an upfront payment—in fact, if you’re promised a policy with the “first month free,” you’re likely looking at a scam. But paying your car insurance premium in monthly installments can reduce the amount you need to pay to activate a policy. 
You always need to make a payment before you can get coverage. The best “no down payment” car insurance is actually just
very cheap car insurance
on a monthly payment plan—and car insurance broker app Jerry is here to help you find it. 
As a
licensed insurance broker
and trusted quote comparison app,
has the tools to track down the lowest rates on whatever auto coverage you need. Read on for tips to lower your first month’s premium. 
Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds
rating primary
4.7/5 App Store Rating. Trusted by 2+ Million Customers.

How to get auto insurance with a low down payment

It’s impossible to get car insurance without paying some money upfront. But the “down payment” or “deposit” on your car insurance policy isn’t a separate charge—it’s just a percentage of the annual premium, along with state fees that apply to all insurance policies. 
In other words, the best way to find very cheap car insurance without a large down payment is to find a low premium that you can pay in monthly installments. Think of it this way: 
  • The lower your total premium, the lower your first month’s payment will be.  
  • Cutting your insurance payment into monthly premiums instead of an annual or semi-annual payment reduces the amount you need to pay at any one time
To find the lowest monthly payment, you’ll need to compare car insurance quotes from multiple insurance providers. A
good credit score
, continuous insurance coverage,  and a
clean driving record
can set you up to find the best rates. 
Key Takeaway True no deposit car insurance doesn’t exist except in the world of scams. Instead of “no deposit car insurance,” start looking for low deposit car insurance

How much does a car insurance down payment cost? 

The exact cost of your insurance down payment will depend on your total premium, the payment plan you’ve selected for your policy, and the discounts you may qualify for. 
Let’s look at an example. Say you’ve found a six-month policy with
for a total premium of $450 with a monthly payment plan.
Your first month’s payment—the down payment you need to make before your auto insurance coverage is active—will likely be a higher percentage of that total sum. Let’s say that your first payment is 20% of the premium, and the remaining five payments are each for 16%
In that case, your down payment would be $90, followed by five more payments of $72 per month. That’s a lot more manageable than putting down $450 upfront! But Progressive offers a variable discount for automatic payments, so you might be able to shrink that initial payment even further by signing up for autopay! 
Keep in mind that this is all theoretical—your actual auto insurance rates will vary based on your profile, and the payment plans available to you will depend on your credit score, your insurance history, and which company you decide to go with. 

Cheapest car insurance companies

By now, it’s clear that the insurance company with the best no down payment car insurance is really just the company with the cheapest rates and the best payment options. So which company offers the cheapest insurance? 
Unfortunately, there isn’t a single answer to that question. Remember, insurance companies analyze your whole profile before setting your rate, and every company gives a different weight to each factor.
For instance, Progressive cares less about your driving history than some other insurers, so high-risk drivers with serious charges like a DUI on their record might find the best rates with Progressive. But for other drivers,
State Farm
, or
might offer better premiums—or better payment plans. 
Compare the average rates in the table below to see which companies might offer you the best rate on the car insurance coverage you need. 
Car Insurance CompaniesMonthly RateSemi-annual RateAnnual Rate
National General$180$1,083$2,166
Bristol West$226$1,357$2,713
Plymouth Rock$224$1,342$2,683
State Auto$182$1,090$2,180
Commonwealth Insurance$180$1,078$2,155
Oregon Mutual$182$1,091$2,181
The General
Are you overpaying for car insurance?
Compare and find out in 45 seconds.
Find Savings!
No long forms. No spam calls. Free Quotes.
4.7/5 App Store Rating, 8,100+ Reviews
Trusted by 1.5+ Million Customers.
rating primary

Why do car insurance companies require a down payment?

Every insurance company requires some form of down payment to activate your policy and solidify the insurance contract. Once the insurance provider makes the offer of coverage and you accept said offer by making the payment, this locks your coverage in place. 
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. Those factors include: 
  • Driving record: A history of accidents and violations tells insurance companies you’re likely to generate claims. A clean record, 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.

Is no deposit car insurance a scam?

Yes and no. 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. 
But “no deposit car insurance” often just means an auto insurance policy that’s paid out in regular installments instead of an annual or semi-annual lump sum.
Different companies offer different payment plans: some 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.
Other types of car insurance scams to look out for include: 
  • Temporary car insurance: If you’re having trouble finding affordable car insurance,
    a temporary policy
    might sound good—but beware! No reputable insurance company offers policies shorter than six months. 
  • Quotes for a fee: If anyone asks you to pay for auto insurance quotes, don’t. You should never pay for quotes, only for a legitimate car insurance policy. 

How to find affordable car insurance with a low down payment

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

Compare multiple quotes

Because finding the best low-deposit car insurance is all about finding the lowest premium, comparing multiple rates is absolutely essential. Unfortunately, comparing quotes can be time-consuming, and dealing with more than a few companies gets confusing fast. 
That’s why
exists—to expand the reach of your search while cutting down on the time and effort it takes. Jerry partners with over 55 top-rated insurance companies, and the app can compare real-time quotes for any policy you’re eligible for in just 45 seconds. 
Jerry’s quotes are completely free (remember, being asked to pay for quotes is a red flag!), and you’ll pay the same rate as if you went through the insurance company directly.
Even better, you’ll get a team of live insurance agents standing by ready to answer any questions you have. They’ll even handle the paperwork when you find the quote you need so that you don’t have to waste time filling out endless forms. 

Manage your budget

When you’re searching for insurance quotes, it’s a good idea to 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 refinance
could be one way to 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
, you’ll be able to see refinancing offers in the app if you’re eligible. 

Opt for a lower coverage level

Are you looking for full coverage insurance to meet a lender’s requirements or to protect a new vehicle—or do you just want to pay the lowest amount possible? 
Full coverage car insurance refers to the combination of
basic liability insurance
comprehensive insurance
. Car insurance is required by law in just about every state, but so-called “full coverage” insurance isn’t. While it’s a good idea to buy it if you can afford it—or if the lender that issued your auto loan requires it—
full coverage
is generally the most expensive coverage option. 
what car insurance is required by law in your state
and check the terms of your auto loan before you start shopping. If you’re able to get by without full coverage, sticking to minimum liability insurance will give you the lowest possible down payment.
StateFull-coverage RatesMinimum RatesSavings

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 policy—especially if you stack them! Here are just a few of the most popular discounts: 
Average savings 
Maintaining a clean driving record or installing a telematics device to track your driving habits could earn you a discounted rate.
5% - 30% 
If you have multiple cars on the same policy, many companies will knock a percentage off your rate. 
10% - 20% 
For teen drivers, taking an approved driver education course could result in premium savings. 
8% - 10% 
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%
If you’ve never had a lapse in coverage, insurers will reward your consistency with discounts. 
10% - 15%
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%
If you’re paying monthly, an on-time payment every month for 12 months could qualify you for a lower rate. 
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. 

Change your payment date

Sometimes it’s all about timing. 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. 

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 pay in the event of an accident! 
Compare auto insurance policies
No spam or unwanted phone calls · No long forms · No fees, ever


No reputable car insurance company will sell you a policy without requiring some type of up-front payment. Look for an insurance provider that gives you a low quote and will allow you to make monthly payments instead of a large lump-sum annual payment.
Every single driver will find different quotes based on their unique profile, but you’ll typically find the lowest car insurance payment if you have good credit and a clean driving record and opt for minimum coverage instead of full.
No. If you’re ever promised auto insurance coverage without any money down, you’re being scammed and could face serious consequences for
driving without insurance
. Instead, get free quotes with
to find the lowest car insurance payment possible. 
By R.E. Fulton
Updated on Feb 14, 2023
Reviewed by Kathleen Flear, Director of Content.
Compare Car Insurance Quotes For Free
Jerry automatically shops for your insurance before every renewal. Members save $872/year.
rating primary
Rating on App Store
Start saving money!
12,000+ Reviews
Trusted by 3.5M car owners like you

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free