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Very Cheap Car Insurance With No Down Payment - Insurify

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Jennifer Pendell

By: Jennifer Pendell

Edited by Jackie Cohen | Reviewed by licensed insurance agent, Donald Hepworth

Last Updated May 13, 2022

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Quick Facts

  • You cannot get car insurance coverage for free.
  • In some cases, your first insurance premium will count as your deposit.
  • While you can’t get car insurance without a deposit, you can find cheap car insurance by comparing quotes from multiple insurance providers.

How can you get cheap car insurance coverage without putting money down? The short answer is that you can’t — no-deposit car insurance isn’t really possible. Anyone offering free car insurance coverage – whether it is liability coverage or full coverage – with no money down is probably trying to rip you off.

However, there are ways to find low-deposit auto insurance and save lots of money in other ways. Comparing auto insurance quotes is the best way to find cheap car insurance. Insurify brings together top insurers, many of whom offer instant car insurance coverage as soon as you pay your first month’s premium and help you compare companies to find the best rates.

How to Get Cheap Car Insurance with No Deposit

Can you get car insurance with no deposit?

While you cannot get an insurance policy without putting any money down, there are many auto insurance companies that offer car insurance at a low cost. However, in many cases, your deposit is simply your first payment, with no additional deposit required.

So-called “no-deposit car insurance” means that you’re buying an auto coverage policy without paying any deposit, down payment, or initial payment up front. That means you’re asking an insurance company to cover you for free, at least in the beginning, and no insurance companies do that.

Insurance companies charge down payments to keep people from taking out policies just so they can show proof of insurance without ever paying anything. However, some companies use the words “deposit” or “down payment” interchangeably with “first payment.”

You always have to make some kind of payment before your coverage kicks in, but with some companies, the first payment is simply your first monthly premium. State Farm, for example, requires you to pay your first monthly premium but doesn’t charge an additional deposit, which means your first premium serves as the deposit.

Other companies, like Progressive, charge only a small payment for the first month’s premium, with the rest of your premiums being higher than the first month.

It is possible to avoid an additional deposit on top of the first month’s premium, so from that point of view, “no deposit car insurance” is achievable—you just can’t avoid paying anything at all toward your insurance costs. There’s no such thing as a free trial when it comes to car insurance premiums.

See More: Best Car Insurance Companies

How to Find a Low Down Payment Auto Insurance Policy

Finding a car insurance policy with a low down payment starts with getting accurate car insurance quotes from several insurers. You’ll need to give the insurers some basic information about yourself to get the right type of insurance, including:

  • Information about your car. The insurer will want to know the year, make, model, color, license plate number, and mileage of your car.
  • Information about you. The insurance company needs to know your name, age, marital status, job, ZIP code, information about your driving history, and how many miles you drive.
  • Your credit score. Having a good credit score can help you get insurance discounts on your monthly rates.

Car insurance companies use this information to calculate a quote. They will show you how much your insurance plan will cost you monthly, quarterly, or yearly. The quote should also include information about what you will pay on your first bill, so you’ll be able to see how much of a deposit will be required, along with information about deductibles and other details.

To get the best rates, it can also help to look for discounts on your car insurance. People with clean clean driving records can usually get cheaper insurance than high-risk drivers, for instance. Some of the most common car insurance discounts include:

  • Safe driver discounts
  • Paperless billing discounts
  • Multi-vehicle discounts
  • Safety features discounts

Compare the discounts that each company offers to get a better sense of what your actual payments will be. Finally, if you are able to pay a deposit, that can help lower the cost of your monthly installments because you’ll be paying part of your premiums up front. Not everyone can afford to put down a large deposit, but anything you can pay up front will help you later.

See More: Car Insurance Quotes

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How to Get the Best Cheap Car Insurance

There are a few things you can do to find affordable car insurance. Look for these features as you compare companies.

Monthly Payment Plans

Unable to pay your premiums in a lump sum? Most companies also offer monthly premium payments, though this may cost you a little extra each month. Insurify’s online car insurance quotes allow you to compare monthly car insurance payments for annual and six-month policy periods.

Customer Support

There’s no point in buying insurance from a company that will leave you high and dry when you need them most. Newer companies offering cheap car insurance may not have a good track record of customer support yet, or they may have lower ratings. Look for reputable companies with a listed number for customer support and read reviews about the company.

Company History and Financial Strength

There are a lot of scams out there. Don’t fall for them! Make sure the company you choose has a long history of paying out claims when it’s supposed to. Read online reviews and check out the company’s status with the Better Business Bureau (BBB) and other rating organizations. This will help you avoid some of the worst offenders.

Comparing Car Insurance Quotes

Compare quotes from lots of different companies to find the ones with the lowest monthly premiums and deposits. Online comparison tools like Insurify can help because they aggregate information about multiple insurers in one place, making research easier and saving you time and headaches.

See More: Best and Worst Sites to Compare Car Insurance

Understand The “Why”

Insurance is a transfer of risk from a person to an insurance company. In order for insurance to be valid, there must be an exchange called consideration. Each party–the policyholder and the insurance company–must provide something of value to one another.

The insured provides consideration in the form of paid premiums. The insurance company returns the favor in the form of a promise to pay for covered losses. Policies are aleatory contracts, meaning the value received by each party is unequal. The insurer’s performance under the contract depends on an uncertain event, a loss that may or may occur.

Finding Very Cheap Car Insurance Without a Deposit

Finding very cheap car insurance with no deposit is not possible, but affordable car insurance with a low deposit is out there. Find the best insurance company for you with Insurify, an easy-to-use car insurance quote comparison tool that helps you compare free online quotes from lots of insurers, saving you money and time.

Frequently Asked Questions

  • Yes, all car insurance providers require you to pay something before your car insurance becomes valid. However, not all of them require a separate deposit. Sometimes, your down payment is simply your first month’s premium. Beware of companies that offer car insurance with no deposit up front at all.

  • Yes! Some companies accept your first monthly payment as your down payment, which helps minimize your out-of-pocket costs for your first month and provides the illusion of no down payment car insurance. Other companies, like GEICO, offer discounted deposits, which can also help save money.

  • Only a few carriers offer no down payment policies. They include Farmers, Progressive, State Farm, Kemper, SafeAuto, Allstate, Nationwide, and Alliance.

  • Use an online comparison tool to make research easy. Insurify is one of these tools. It brings together all the information you need from top insurers in one place so you can compare policies easily.

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Methodology

The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Jennifer Pendell
Jennifer Pendell

Content Writer at Insurify

Jennifer Pendell is a personal finance writer from the Midwest. Her passion is breaking down tough subjects to make them easier to understand. When she’s not writing, she loves reading, camping and spending time with friends and family.

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