$20 Down Payment Car Insurance: Is It Possible?
It’s possible to find low-down-payment car insurance, but generally only the safest, most-qualified drivers will be able to start a policy for around $20.
Secure. Free. Easy-to-use.
Excellent
)
Written byBob Phillips
)
15+ years in personal finance advising and writing
Holds Chartered Life Underwriter (CLU) designation
Bob has spent 15+ years helping people plan their financial lives. As a freelance writer, he’s covered insurance, mutual funds, stocks and bonds, and more.
Featured in
){kind=small}
){kind=small}
)
Edited byAshley Cox
)
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
Featured in
){kind=logo}
){kind=small}
){kind=small}
){kind=small}
)
Reviewed byMacKenzie Korris
)
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
MacKenzie Korris is an insurance copy editor with a producer’s license for property and casualty insurance in Missouri.
Updated
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
Advertiser Disclosure
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
Table of contents
Quick Facts
Most car insurance companies require you to pay the first month’s premium up front.
Be wary of any companies advertising “no-down-payment” car insurance, as it is likely a scam.
Quote comparison is one of the best ways to save money on your policy.
Can you get car insurance for $20?
Most drivers are unlikely to get car insurance for only $20 down. Any insurance company offering a down payment this cheap may be trying to scam you, as most insurers typically charge the first month’s payment to activate your policy.
This first payment is known as a down payment, and the cheaper your premium is, the lower your down payment will be. Only drivers with long histories of safe driving, good credit, and multiple other positive rating factors are likely to qualify for monthly rates in the $20 range.
You may also see no-down-payment car insurance advertised. This is also likely a scam, and you should be wary of any insurance companies offering it. Almost every auto insurance company requires some money down with an application, typically a low down payment of the first month’s premium or whichever payment method you select.
Important Information
Insurance agents will sometimes refer to a down payment for car insurance as a binder. This means the insurance company is bound to cover you if it accepts your down payment and approves your application for coverage.[1]
How car insurance down payments work
Almost every insurer requires a car insurance down payment, sometimes called a deposit or a binder. It’s the amount you need to pay to activate your coverage. The amount of your down payment depends on the term you select (monthly, quarterly, semi-annually). For example, if your monthly premium is $100, your down payment will be $100.
Insurers require a down payment to protect themselves financially.
Find Cheap Car Insurance
Save up to $1,100 annually when you compare rates with Insurify
Secure. Free. Easy-to-use.
Based on 7,669+ reviews
4.8/5
What is no-down-payment car insurance?
No-down-payment car insurance doesn’t really exist, and you should steer clear of insurers offering it. Some may try to rephrase “down payment” as “deposit” and claim that it’s only an application fee, but it’s effectively the same thing as a down payment.
Put simply, you won’t get reputable insurance without putting at least a little money down.
)
Read More: How Car Insurance Works: Everything You Need to Know
How to get car insurance with a cheap down payment
The best way to get a low deposit is to find cheap car insurance so that your initial payment will be as low as possible. Fortunately, you have many ways to do this.
1. Compare car insurance quotes
Just as you’d comparison shop when looking for a car, it’s also a good idea to compare car insurance quotes. Prices, discounts, and coverages can vary significantly among insurance companies. Comparing quotes from multiple insurers can help you find the best rates for the coverage you need.
You have multiple options for comparing quotes. You can work with an independent agent, use an online quote-comparison tool, or get quotes directly from insurers.
2. Look for discounts
Most insurers — but not all — offer multiple discounts to help drivers save. Check out discounts for good driving, going paperless, bundling your home or renters insurance with an auto policy, getting good grades in high school or college, and more. Ask your insurer about what discounts you may qualify for when you apply for insurance coverage.
3. Purchase liability-only coverage
Liability-only car insurance — often called “minimum coverage” — is the cheapest type of auto insurance policy you can buy. But it’s not for everyone.
If you have a vehicle lease or loan, the leasing company or lender will require you to buy full coverage, which includes collision and comprehensive coverages. And even if you own your car outright, full coverage is a good idea if you have a newer or high-value vehicle or wouldn’t be able to pay for repairs or to replace it out of pocket.
Recent quotes for other Insurify users
Drivers have found policies from Mercury, The General, Aspire General, and more, for rates as low as $45/mo. through Insurify
*Quotes generated for Insurify users within the last 10 days. Last updated on January 20, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
Rates shown are real-time Insurify user quotes from 500+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from January 20, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on January 20, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
Rates shown are real-time Insurify user quotes from 500+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from January 20, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
4. Maintain a good driving record
Many factors affect car insurance premiums, and your driving history is one of the most important. Insurance companies charge more for high-risk drivers who have infractions like speeding tickets, reckless driving, at-fault accidents, and driving under the influence (DUI) convictions. These violations can increase the likelihood of a driver filing a claim.
Insurers often reward good drivers with discounts. So practicing safe driving habits and remaining claims-free can help lower your car insurance premium.
The following table illustrates the effects moving violations can have on minimum-coverage car insurance rates from some top companies:
The below rates are estimated rates current as of: Monday, January 19 at 11:00 AM PST.
Insurance Company  | Clean Record | Speeding Ticket | At-Fault Accident | DUI |
|---|---|---|---|---|
| COUNTRY Financial | $44 | $65 | $62 | $60 |
| Auto-Owners | $47 | $63 | $61 | $69 |
| USAA | $53 | $70 | $71 | $78 |
| State Farm | $55 | $70 | $72 | $81 |
| NJM | $58 | $89 | $83 | $94 |
| Mile Auto | $70 | $83 | $96 | $103 |
| Allstate | $75 | $101 | $101 | $110 |
| Erie | $75 | $104 | $99 | $109 |
| American Family | $82 | $109 | $110 | $121 |
| Commonwealth Casualty | $83 | $92 | $109 | $122 |
| Safeco | $87 | $121 | $129 | $147 |
| GEICO | $87 | $118 | $110 | $125 |
| Root | $91 | $128 | $121 | $135 |
| National General | $91 | $112 | $121 | $134 |
| Dairyland | $92 | $113 | $120 | $135 |
| The General | $93 | $131 | $132 | $137 |
| Direct Auto | $95 | $119 | $133 | $140 |
| Nationwide | $96 | $128 | $130 | $141 |
| Mercury | $96 | $147 | $162 | $154 |
| Travelers | $100 | $133 | $135 | $147 |
| Bristol West | $101 | $127 | $132 | $148 |
| GAINSCO | $102 | $115 | $126 | $150 |
| Farmers | $110 | $143 | $146 | $162 |
| Elephant | $111 | $126 | $143 | $163 |
| Anchor | $112 | $138 | $144 | $165 |
| Chubb | $119 | $153 | $157 | $175 |
| AssuranceAmerica | $126 | $162 | $169 | $185 |
| 21st Century | $133 | $182 | $183 | $195 |
| Plymouth Rock | $137 | $187 | $184 | $201 |
| Clearcover | $141 | $192 | $226 | $207 |
| CSAA | $141 | $187 | $217 | $207 |
| Shelter | $142 | $199 | $193 | $210 |
| The Hartford | $151 | $228 | $215 | $240 |
| State Auto | $152 | $213 | $212 | $223 |
| Liberty Mutual | $153 | $197 | $205 | $225 |
| Hugo | $193 | $290 | $259 | $284 |
| Amica | $269 | $392 | $370 | $413 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
5. Increase your deductible
Increasing your deductible can lower your monthly car insurance premium because you’ll pay more out of pocket if you file a claim. If it makes sense for your situation, opting for a $1,000 deductible instead of a $500 deductible could help you save on your monthly car insurance costs.
$20 down car insurance FAQs
Finding affordable car insurance can be difficult. Check out the additional information below about $20 down car insurance.
No single insurance company has the cheapest down payment for every driver. Insurance companies base rates on several factors, including your age, ZIP code, vehicle make and model, and your driving record. Comparing quotes from multiple companies is the best way to find the cheapest down payment for your situation.
You probably can’t get a car insurance policy for as little as $20 down or even $20 per month. But if you have a clean driving record and other favorable rating factors, you may be able to find minimum coverage for less than $30 per month.
Yes. It’s normal to pay a down payment for your car insurance. It’s typically equal to the first month’s premium. Some insurers or agents may refer to it as a “deposit,” but it really means the same thing as a down payment or up-front money. You must pay it for the insurer to issue you coverage.
Your total car insurance premium, the insurance company, and your personal driver profile affect how much your down payment will be.
If you have driving infractions like speeding, are a new driver, have a history of claims, live in a high-risk ZIP code, have a poor credit history, or drive a high-value vehicle, your car insurance premium will be higher. That means your down payment is also likely to be higher, even if your insurer requires only the first month’s premium as a deposit.
Every reputable car insurance company will require a deposit to initiate a policy. Depending on the company and your personal circumstances, you may only have to pay the first month’s premium as a down payment. Some companies may charge a higher down payment if they consider you or your vehicle a higher risk.
Car insurance is mandatory in every state except New Hampshire.[2] Minimum coverage amounts and coverage types vary by state, but nearly every state requires liability coverage for property damage and bodily injury.
You’ll need to carry at least your state’s required minimum liability coverage. Whether you need any additional coverage depends on how you drive. Consider how frequently and how far you drive, who you drive with, and when you drive when selecting your coverages and amounts. If you’re unsure how much you need, talk to an insurance agent.
Most people won’t be able to find a car insurance policy with a $20 down payment. If you do find a policy with a low down payment amount, make sure the lower cost will give you the coverages you need to stay legal on the road and protect your finances.
Car insurance down payment amounts vary widely because drivers have so many unique factors that affect their car insurance rates. Getting quotes from three to five insurers will give you an idea of the average down payment amount you might pay.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Related articles
)
Best Car Insurance for a Bad Driving Record
January 20, 2026
)
How to Get Cheap Car Insurance
January 20, 2026
)
10 Cheapest Cars to Insure in 2026
January 20, 2026
)
Car Insurance Discounts : Full List and How to Qualify
January 20, 2026
)
Cheap Liability-Only Car Insurance Quotes From $44/mo.
January 20, 2026
)
Cheap Full-Coverage Car Insurance Quotes From $81/mo.
January 20, 2026
)
Cheap No-Deposit Car Insurance: Get Quotes Instantly
January 20, 2026
)
Cheap Car Insurance From $44/mo. | Get a Quote
January 20, 2026
Sources
- International Risk Management Institute. "Binder."
- New Hampshire Insurance Department. "2022 Automobile Insurance Consumer Frequently Asked Questions."
)
Bob Phillips
Having spent more than 15 years helping people plan their lives financially, Bob
mastered many different financial products to help people achieve their financial
goals, including life insurance, disability insurance, mutual funds, and stocks and
bonds. He earned the Chartered Life Underwriter (CLU) designation and held
numerous securities licenses. Bob is an internationally published poet and is now
a freelance writer living in North Texas with his wife and Doberman puppy.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
Featured in
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
MacKenzie Korris is an insurance copy editor with a producer’s license for property and casualty insurance in Missouri.