$20 Down Payment Car Insurance

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$20 Down Payment Car Insurance

If you are low on cash and need to cover your vehicle right away, $20 down payment car insurance can help you out. There are so many people on a tight budget that have very little in savings. Paying for essential goods and services like auto insurance can be a considerable challenge. Buying auto insurance with the lowest deposit and monthly payments can help those who otherwise could not afford coverage get insured with minimal upfront costs. With a $20 down payment car insurance plan, almost anyone can afford to get legally covered.    

Is $20 Down Payment Car Insurance Really Available?   

Most insurers will demand that you pay part of the premium upfront before a policy becomes active. The problem is, some cash-strapped people can’t afford $90 or even a lower $50 down payment. This includes students and those recently laid off from work or who lost their job. 

For many, in today’s stressful economy, paying for a new auto insurance policy can seem out of reach. Also, temporary conditions, like someone who used up all their savings to buy a car, can leave them with little funds left over for insurance coverage. Some insurers offer a $20 down payment car insurance for select drivers. It’s important to note not all motorists will qualify for this type of discounted policy, and there are restrictions. To find what carriers offer $20 deposit car insurance get a quote and compare rates from multiple providers. To get started, enter your zip code.

cheapest car insurance down payment

How to Qualify for $20 Down Payment Auto Insurance

Getting the cheapest down payment from $20 depends in large part on a person’s risk profile. The less of a risk a driver is, the lower he or she will pay for the deposit and overall premium cost. High-risk motorists will likely not qualify for $20 down auto insurance. This includes drivers who have multiple points on their record, several accidents, or even DUIs. Insurance providers will assess the risk you pose and then determine if you qualify for very cheap car insurance with no deposit or policies that require a low deposit.

You will likely be asked for your social security number when filling out a quote. This will play a significant role in risk assessment and the rates you will end up paying. It’s also important to note that new vehicles, especially those that cost more than $30,000, will require a larger deposit. Those drivers who require an SR-22 or have had reckless driving tickets or DUI convictions in the past will be required to pay a more considerable amount of the total premium upfront.

To qualify for $20 Down Payment Car Insurance, you should: 

  • Be a Safe Driver with a Good Record
  • Drive less than 800 Miles per Month
  • Be over 25
  • Drive a safe Vehicle that’s Cheap to insure
  • Have Good Credit (a Score Above 700) 
  • Homeowner
  • Three or more Years of Continuous Coverage 
  • Garage Park your Vehicle  

What Companies Offer $20 Down Payment Car Insurance? 

Not many insurers offer this type of deeply discounted policy, and it’s not heavily promoted. Most insurers require deposit amounts of 20% or more of the total premium. Several insurers offer $20 down payment car insurance deals to qualifying drivers. 

Companies that offer cheap low deposit car insurance coverage include: 

  • State Farm
  • Farmers
  • Progressive
  • Liberty Mutual
  • Esurance
  • Mercury 

Payment Options for Low Deposit Auto Insurance Policies 

If you can’t pay the full premium amount upfront, you can take advantage of monthly installment programs. These are payments that are offered before you buy a policy, but you can always pay for your policy in full. The payment terms are set up with several options for you to choose from. This includes:

  • Premium paid in full with one payment
  • Payments made Bi-annually or every 6 months
  • Payments made Quarterly (these are offered on both 6 and 12-month policies)
  • Monthly payments (this is the option most people choose)

very cheap car insurance no deposit

When a person decides to pay for their coverage through an installment plan, they usually need to put down a deposit before the policy becomes effective. Typically, the first month’s payment is what most insurers require. 

With a $20 down payment car insurance plan, you can often get insured for the first month with only a $20 out-of-pocket expense. 

How to Pay Your Car Insurance Bill 

There are several ways you can pay your insurance bill. One of the benefits of getting a direct policy is you can make your payment online. Here are a few of the most common payment methods:

  • Pay by Check
  • Money order
  • Electronic Funds Transfer
  • Credit or Debit Card
  • Paypal

If you set up automatic payments, you can qualify for a small discount that will save you more.  

Safe Drivers Qualify for the Lowest Down Payment Car Insurance 

When you buy auto insurance coverage, the provider is taking a risk and betting that you won’t get into a wreck. This includes calculating many factors of risk, like repair and replacement costs.

If you have a new BMW that costs $60,000, you probably won’t qualify for $20 down payment car insurance. However, if you own a used Toyota Corolla that you only drive about 600 miles per month, there’s a higher chance you will qualify for the lowest deposit car insurance.  

The less likely you are to get into an accident, the more willing an insurer will be to offer incentives on the policy, including a low upfront deposit. 

A Person’s Credit Score is a Key Pricing Factor 

Another factor that comes into play is the credit rating. These days auto insurance firms are placing a higher degree of weight on a person’s credit score. 

The theory goes that someone responsible with their money should also be a safe driver and less likely to get into a wreck. In order to qualify for a $20 down auto insurance policy, you need to make sure your credit rating is in good standing. If it is not, take aggressive steps to get it fixed as soon as you can. Having a good credit score above 700 will not only help you get $20 down payment car insurance but so many other things like a low-interest rate auto loan.

$20 Down Payment Liability Car Insurance  

You’ll have a much greater chance of getting a $20 down payment car insurance if you get a liability-only policy. You can purchase the state minimum coverage for as little as $29 per month. It depends on factors like the state you live in and your overall risk profile.  

Liability insurance is mandatory in every state. It’s the minimum amount of coverage you need to buy to be legally covered. It’s also a starting point for insuring your car as it comes with limited coverage that won’t fully protect you in a severe accident. These “bare bones” types of policies can cause more harm than good if you get into a major wreck.  

Cheap Full Coverage Auto Insurance with No Down Payment

For many people with a new or newer vehicle leased or financed, it is required to buy full coverage car insurance. This means getting covered with a comprehensive plan that will protect the vehicle’s value from almost any incident. 

While this is enhanced protection, it comes with higher premiums. Buying full coverage protection can easily cost more than double what a basic liability policy costs. For many people that can barely afford a new vehicle, this puts them in a tough situation. They are forced by the lending company to buy a comprehensive policy but might not even have enough money for the car insurance down payment. 

Securing a $20 down payment car insurance for comprehensive coverage helps those low on cash who need greater protection. Compare full coverage quotes online in about five minutes. Enter your zip code to get started.  

low cost car insurance with no down payment

How $20 Deposit Car Insurance Works

This is a problem that far too many people face when buying or leasing new vehicles. The good news is there are some options available, with down payments that start at only $20. Several insurers like Progressive will waive the down payment on a full coverage policy and let your first premium installment payment be credited as the deposit.

For example, let’s say your full coverage policy costs $1,800 per year, and the deposit amount is 10% or $180. With some carriers, you can make the first month’s payment of $180 and then the subsequent 11 months payments of $147. This helps out those short on cash who can’t make both a deposit and a first-month car insurance payment, all within the first month.

If you shop around for these deals, it’s possible to find cheap car insurance with no down payment and rates under $100 per month. Compare at least ten quotes from both national and regional providers. Check our top list of car insurance companies.

$20 Down Payment Car Insurance

Car Insurance with No Down Payment

The reality is most insurers require an initial down payment before a policy going into effect. There is no such thing as a free auto insurance policy. In the case where you live in a state that allows $20 down payment car insurance, you can get insured for the first month with minimal out-of-pocket cost to you. Carriers won’t take the risk of insuring someone without first receiving a payment upfront.  

So many consumers are attracted to the idea of getting a free first-month car insurance policy. The reality is, there’s no free car insurance available from any insurer. 

car insurance with no down payment

Insurance companies want long-term clients that can afford to stay covered at all times. A prospective customer that wants something for free is often not a good long-term client. They are more prone to cancel their policy, not make a payment, or even worse, file a false claim. 

Therefore, it is not likely you’ll find low-cost car insurance with no down payment. However, it’s wise to do a search in your area for the cheapest policy available.

The Pros and Cons of $20 Down Payment Car Insurance 

You must consider that these low-down policies are often more expensive than if you pay the total premium upfront and in full. For example, you might think you are getting a great deal on a policy that requires nothing down or a deposit of just $20. These policies often cost 5% to 10% more than if you paid a higher upfront deposit. However, for those drivers short on cash who need immediate coverage, it can really help out.  

Low Deposit Policies Cost More

If you are able to find low-cost insurance with a $20 down payment or the first month free, you need to know you will probably end up paying more than if you made a significant down payment. This is one disadvantage of this type of policy.  

However, for many people that just don’t have any savings, they need the lowest deposit policy possible. Getting a $20 down payment auto insurance coverage can help someone who otherwise could not get insured. 

The truth is very low deposit policies and $20 down payment car insurance can cost 10% more than a typical policy that requires a 25% upfront deposit. Some mistakenly associate a low deposit auto insurance plan with a cheap policy. Even if your deposit is as low as $20, your monthly payment could be $150 or more. If you put down more money upfront, say $175, that installment payment could be around $130 monthly. In most cases, the larger the deposit amount you pay, the lower your monthly payments will be.

If you have the money, it’s also smart to pay the entire premium amount in full. This decision can save you some serious money. It also reduces stress because you won’t have to worry about making recurring payments each month.

States That Allow $20 Down Payment Auto Insurance Policies 

There are only certain states that allow insurers to offer $20 down and zero down car insurance. These include: 

  • California
  • Washington
  • Arizona
  • Oklahoma
  • Georgia
  • New York
  • Florida

Low Down Payment Car Insurance for Teenagers and Young Drivers

Drivers under the age of 25 often have a unique problem. Many don’t have a lot of money, yet they are charged more for things like auto insurance and loans. This is because stats show younger motorists get into more accidents than any other age group. They also take more risks and have bad habits. They often, you guessed it, text and talk on the phone while driving. So, how does a young driver get very cheap car insurance with no down payment or a very low $20 deposit? The odds are stacked against them, but it’s still worth a try.

First, compare several plans from direct insurers like Progressive and Esurance. These large insurers often have more flexible plans, with deposits that might be as low as $20 but often are $50 or more. 

The next step is to get a basic policy, such as state minimum liability coverage. This minimum coverage will reduce the overall cost of the premium. As a rule of thumb, the lower your total cost of coverage, the lower your deposit will be. 

So, for a 6-month liability insurance plan that costs $370, you might only need to put down a deposit payment of $45. This is one way to get low deposit auto insurance coverage. You also want to have a vehicle that is cheaper to insure. A new Corvette, for example, will require a larger deposit than a 10-year-old Ford Focus. If you want the lowest down payment auto insurance, get a used, older car with a four-cylinder engine and four doors.  

Low Deposit Auto Insurance for Seniors

Drivers over 55 are some of the safest motorists on the road. Their years of fast, reckless driving are long behind them. Statistics prove that seniors between 55 and 65 are some of the safest drivers, who get into far fewer wrecks than younger motorists. They rarely twitter or text while driving. Many seniors qualify for $20 down payment car insurance because they do not drive as much.

Many older motorists drive less than 800 miles per month. Insurers also love these drivers because they tend to pay their bills on time and stick with one company for years. For these reasons, many seniors can qualify for $20 down payment car insurance in select areas. Older drivers over 55 can be eligible for some of the lowest deposit amounts of any group of drivers. Compare quotes now by entering your zip code.

How to Get the Best and Cheapest Car Insurance with a $20 Deposit

If you need the cheapest car insurance with a low deposit starting at $20, start your search online no matter where you live. You can compare prices from national and regional insurers in just a few minutes. This way, you will let you see who has the lowest available rate without a down payment for the coverage you need. There are things you can control to get cheaper rates.

no money down car insurance

These include:

  • Raising your deductible amount to $1,000 or more
  • Get rid of over-lapping coverage (like rental car insurance)
  • Review your policy limits
  • Park your car in a garage 
  • Maintain a credit score above 700
  • Add Enhanced Anti-Theft Device to Your Vehicle 

Take Advantage of Several Discounts 

Multiple auto insurance discounts can help you save hundreds per year. This includes: 

  • Safe Driver 
  • Bundling Home and Auto Insurance Coverage
  • Multi-Vehicle Discount
  • Good Student
  • Military Member or Veteran 
  • Senior Citizen 
  • Good Credit Discount 

In some areas, it will be easier to get cheap auto insurance with a low down payment. For example, you might qualify $20 down payment car insurance in Florida if you:

  • Have a used vehicle more than 8 years old
  • Excellent Driving Record
  • Have had continual coverage for 3 or more years
  • Have great credit
  • Get a State Minimum Liability Policy


Finding cheap $20 deposit auto insurance is a difficult task. Look for insurers that have low deposit options like Progressive and Esurance. If your risk profile is good and you have a used vehicle, you might qualify for a $20 down payment car insurance. The more of a risk you pose to an insurer, the higher your deposit amount will be. 

Also, the more expensive your automobile is, the more of a down payment you will be required to pay upfront. To find the best rates and lowest deposit requirements, apply for quotes online. This will save you time and help you find a $20 down payment car insurance plan. Get started now by entering your zip code and compare the best rates from top-rated insurers.