Very Cheap Car Insurance No Deposit

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Very Cheap Car Insurance No Deposit

Are you looking for a very cheap car insurance no deposit plan, and need to compare the best rates from providers offering this type of coverage? If so, you’re in the right place. This article will explain in-depth how to get the cheapest auto insurance rates with no down payment required.

It has never been easier to save money on car insurance. This includes plans with no deposit and monthly rates that start under $39. To compare online quotes, just enter your zip code and answer a few simple questions. All it takes is about 2-3 minutes.

What Is No Down Payment Auto Insurance?

A no down payment policy means an auto insurance company will consider your first installment payment as a deposit. The total cost of the premium will be divided into equal payments. You won’t be required to make a deposit, only the first monthly installment for your coverage to begin.

To put it another way, with a very cheap car insurance no deposit plan, your initial monthly payment will be considered as your down payment. No deposit policies spread the cost of insuring your vehicle over the year, making it seem like you’re not paying a deposit.

No Deposit Auto Insurance Is Not Free Coverage

The idea of getting free car insurance is appealing to many, especially those that are low on cash. The reality is, there is no such thing as free auto insurance. Again, it means you need to make a payment prior to your insurance coverage starting. Many people falsely believe that with a zero-deposit policy, the first month of coverage will be free. No insurance provider will insure a driver until the payment is made.

Who Needs Low-Cost Car Insurance with Nothing Down?

People who are low on funds and have very little money for car insurance deposits usually seek out ways to get insured without any upfront out-of-pocket expense. For example, a person might have purchased a vehicle and used up almost all of their savings, leaving no money for auto insurance. In this case, the cheapest car insurance with no deposit plan would help the driver get legally insured, in some cases, for as little as $39.

States that Allow No Deposit Auto Insurance

There are only seven states that currently allow this type of coverage. They include:

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

Of the states offering very cheap car insurance no deposit, California has the most providers. You can also find more reasonable rates than the national average in states like Georgia and Florida if the driver has a clean record and a vehicle that is cheap to insure.

What Companies Offer $0 down Auto Insurance?

Not all providers offer very cheap car insurance with no deposit, and it is not widely promoted. The companies that do include:

  • State Farm
  • Progressive
  • Esurance
  • USAA
  • Farm Bureau
  • Auto-Owners Insurance
  • Nationwide
  • Metropolitan Auto Insurance
  • Farmers
  • 21st Century
  • Travelers

CompanyState Minimum Liability50/100/50
USAA$421$507
State Farm$438$529
Farm Bureau$442$538
Nationwide$450$542
Progressive$464$557
Auto-Owners$539$645
Esurance$566$651
21st Century$587$669
Farmers$602$689
Met$685$772
Travelers$759$840
 (Rates given are based on a 45-year-old driver, with a clean DMV record, driving a 2012 Toyota Camry)

Home & Auto bundle

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Loyalty rewards

There are always ways to save. The longer you stay with us, the higher you go in our loyalty program and the more discounts you can get.

Automatic discounts

Instant discounts (i.e., safe driver, student, and homeowner) can save you lots of money.

Compare the Cheapest Auto Insurance No Deposit Plans

It can be a challenge to find car insurance companies that don’t require a deposit. It would take hours of phone calls to insurance companies to uncover this kind of coverage. Today, it is so much easier to compare auto insurance plans online that require no initial deposit.

By comparing quotes, you can review the deposit requirements based on your unique profile and coverage needs. If you cannot find very cheap car insurance no deposit, then you can often find low deposit car insurance, starting at just $20 down.

No Deposit Plan – Monthly Payments vs. 12 Month Policy Paid Upfront

Difference in CostNo Down PaymentFull Payment
First Payment$140$1,596
Remaining Monthly Payments$1,540$0
Cost Savings$0$84

Submit an application today and compare up to 10 quotes from top providers.

How to Qualify for Very Cheap Car Insurance No Deposit

It’s important to realize that not everyone qualifies for very cheap car insurance with nothing down. This is because car insurance companies calculate a person’s risk profile, and high-risk motorists will be required to pay higher premiums, in addition to making a larger deposit upfront.

The riskier a driver is, meaning the more likely he or she is to get into an accident and file a claim, the more auto insurance coverage will cost. Insurance carriers use complex models to predict risk and then assign premiums based on that risk calculation.

Most providers do not widely offer special discounts like no deposit car insurance. However, select companies do offer this type of coverage in several states. To qualify for no down payment auto insurance, you should have:

  • An Excellent Driving Record
  • Be over the age of 25
  • A Vehicle that is Cheap to Insure
  • Select a Liability Only Policy 
  • Have a Credit Score above 700
  • Live in an area with Low accident and Vehicle Theft Rates

In short, the less risk you are to a carrier, the less you will pay for car insurance coverage, and your deposit amounts will also be lower.

$0 Down Car Insurance for High-Risk Drivers

If you are a high-risk driver with multiple tickets and several accidents on your record, it will be nearly impossible to get very cheap car insurance with no deposit. If you are a higher-risk motorist, you will most likely be required to make a down payment of 25% or more before your coverage begins. Several companies specialize in providing coverage to high-risk drivers, including The General Insurance, which has some of the best rates.

Auto Insurance Premiums and Payment Options

Insurance companies calculate premiums annually. You basically have two choices to pay for your auto insurance. The first one is to make an upfront payment for the total amount of the premium. This can save you 2% or more over the total cost of the policy.

Many people can’t choose this option because they don’t have the savings or they don’t want to tie up the cash they need for other things. This is where very cheap car insurance no deposit can really help those struggling to get insured for the lowest possible rate. Select insurers will allow a driver to make the first month’s installment payment and the policy’s remaining payments in convenient monthly payments.

While these policies are not cheaper, they help those drivers get insured who otherwise could not afford car insurance. Many insurance companies require down payments as high as 30% of the total premium. This can amount to $300 or more for a full coverage policy. With a low deposit car insurance plan, the first installment payment can be under $50, depending on the coverage selected and the driver’s overall risk profile.

You can pay premiums:

  • Annually
  • Semi-Annually
  • Quarterly
  • Monthly

Cheapest Auto Insurance Coverage with No Down Payment

A low deposit car insurance plan will spread the total premium amount over 12 months. If you need the absolute cheapest car insurance coverage with no deposit due to your current financial situation, you should select a state minimum liability only policy. This “bare-bones” coverage will not provide you excellent protection, but it will give you the cheapest rates, and your vehicle will be legally insured.

To illustrate this, let’s say you live in Florida and just recently used up all of your savings to buy a used SUV. You intend to get full coverage car insurance when you can afford it, but at the moment, you just want to purchase State minimum liability car insurance with nothing down.

After checking several rates, you found that Progressive offered you a liability-only policy with monthly installment payments and no deposit for $56. In this case, you would then only need to pay an additional $616 over the next 11 months, for a yearly total of $672.

At any time, if you have the money, you can upgrade to full coverage and have more protection. The cheapest auto insurance with $0 down is a risk you must consider if you are low on funds. These policies will often leave you under-insured but will save you a considerable amount of money.

You are Not Required to Make a Deposit to Get a Car Insurance Quote

Some people mistakenly believe that they are then obligated to make a down payment once they get an auto insurance quote. This is simply not true. No major insurer will ask you for a deposit after you get a quote. In many cases, an agent will call you if you provide your personal phone number and try to sell you a policy. Quotes are free, and there is no obligation ever to buy a policy, including no deposit car insurance plans.

Advantages of Zero Down Auto Insurance

  • You can get covered with no deposit upfront.
  • Be eligible for installment payment plans as low as $29 monthly.
  • Get Direct rates that could save you $500 or more per year.

Disadvantages of Getting Very Cheap Car Insurance No Deposit

There is no real disadvantage to very cheap car insurance no deposit other than the policy will cost a little bit more. Expect to pay about $50 to $60 more per year by opting for no deposit auto insurance with monthly installment payments.

Car Insurance Down Payment Cost

You should understand that with a no deposit auto insurance plan, your first monthly payment will be considered the deposit. Many insurers charge deposit amounts between 20% and 30% of the premium. If you are charged a deposit, then it will be deducted from your installment payments going forward.

For example, if you were required to make a 20% down payment on a $1,500 annual policy, you would pay $300 down. Then each month, you would pay $100 to cover the remaining balance owed. With zero deposit coverage, you can get insured with a lower initial cost. However, you will be making larger monthly installment payments going forward.

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Cheap Auto Insurance with Zero Down for Seniors

Senior drivers under 75 are some of the safest drivers on the road. They take far fewer risks and also, on average, drive much less than other motorists. Qualifying seniors can get basic liability auto insurance with no down payment for around $39 a month. To check rates for senior car insurance, enter your zip code and fill out a quick application.

Full Coverage Auto Insurance with No Deposit

If you are a safe driver and meet certain requirements, you can get full coverage car insurance with no down payment. This type of policy is not offered by all insurers and is less common among the big national insurers. It is often provided by smaller non-standard insurers, which offer niche policies, such as auto insurance with $0 down.

Getting the Cheapest Car Insurance Coverage

Now that you understand how to get very cheap car insurance no deposit, you need to learn how to get the very cheapest coverage possible. Here are some helpful tips that can save you some serious money.

  • Compare Ten or More Quotes from National and Regional Carriers – Insurers’ rates for auto insurance can vary quite a bit from state to state. In California, Progressive might be the cheapest insurer but one of the most expensive providers in New Jersey. You just never know who will have the best rates where you live. Never assume just because a company is large, has been around for over 100 years, and runs TV commercials all the time that they have the best rates. While you might assume State Farm or Farmers might have the best deal for the coverage you need, a smaller company like Erie or Electric Insurance might have much lower rates. So, the point is to get as many quotes as you can and include local and regional carriers in your hunt for very cheap car insurance no deposit.
  • Get rid of Collision and Comprehensive Insurance for an Older Vehicle – Has your vehicle depreciated more than 60%? If so, it probably makes sense to drop collision and comprehensive. This can save you hundreds per year. If your car is financed or leased, you most likely will be required to pay for full coverage.
  • Get all the Discounts you can – Who doesn’t love a nice discount? Most insurers offer discounts you can take advantage of that can save you big bucks. These include:
    • Safe Driver
    • Military or Veteran Discount
    • Multi-Vehicle Bundling
    • Teacher Discounts
    • Bundling Home and Auto Insurance onto one policy Discount  
    • Student Discount (Given to Students that have a 3.0 or higher GPA) 
    • Paperless Discount 
    • Premium paid-in-full Discount
    • Enhanced Safety Features (Anti-lock Brakes, surround Airbags, GPS Security System) 
    • Automatic Payment Discount 
    • Telematics Discount (A device installed on your car will monitor your driving)
    • Discount for completing a Defensive Driver Course 
  • Opt for a Higher Deductible – If you have collision or comprehensive insurance that is more expensive, you can save a lot by opting for a higher deductible of $1,000 or more. This is something you have control over, and it’s an easy way to save 20% or more. If you have a liability-only policy, the deductible amount does not apply.
  • Get Rid of Overlapping or Unneeded Coverage – Many policies have overlapping items that you can remove and thus get a lower premium. This includes roadside assistance and rental car coverage.
  • Maintain a Good Credit Score – If you want to get the cheapest possible car insurance, you will need to have a 700 or higher credit score. In most states, insurers use a person’s credit rating as a critical factor in assessing risk. If you have bad credit, try to repair it as soon as you can.
  • Consider Mileage-Based Auto Insurance – If you drive less than 10,000 miles per year, you could save 40% or more on car insurance. Companies like Metro mile charge rates primarily based on the miles driven. The fewer miles you drive, the less you pay. Metro mile has very cheap car insurance with low down payments. If you don’t drive much, they are a great choice.

Find the Best Deals Online for Low Down Payment Car Insurance

Getting very cheap car insurance no deposit isn’t that hard if you know where to look. That means going online and reviewing as many quotes as you can.

Apply today for a custom rate quote and start comparing the best rates for the coverage you need in just minutes. The quote application only takes about four to five minutes to fill out. To apply for a free quote, you only need to give some basic information. This includes:

  • Provide your Vehicle Info – To qualify for instant car insurance with no deposit, you have to give the make, model, and year of your automobile, along with the VIN number.
  • Provide your Personal Details– You need to provide your name, age, relationship status, phone number, and your present home address—also, the zip code where your vehicle will be parked or garaged.
  • You will be required to provide information on your driving history, including any accidents.
  • How many drivers will be on the policy?
  • Choose Your Payment Plan – You can pay for your car insurance with a single payment or monthly installment plans. If you set up automatic payments, you can often get a small discount.

Once you find a policy that meets your needs at the best price, you have the choice to purchase it in full or make payments every month. It would be best to consider that the smaller the down payment, the higher your monthly installment payments will be.

Compare Quotes Every Six Months

Today, thanks to incredible advancements in technology, it’s easier and faster than ever before to compare auto insurance quotes. Online sites like this allow you to get quotes from multiple carriers in a few minutes. You can use any device that connects to the web to compare quotes. This includes an ever-popular choice, cellphones. Use your smartphone not only to compare very cheap car insurance with nothing down plans, but you can even buy a policy with it.

A good rule of thumb is to compare rates every 6 months. You never know when you are going to find a deal that could save you 15%, 20%, or even more. Also, if you find a lower rate, don’t feel bad about switching to another company. Carriers will cancel your insurance and refund you any outstanding balance owed, usually in less than 10 minutes.

Get No Deposit and Low-Down Payment Quotes from Our Site?

We have provided free quotes to our satisfied customers for more than 14 years. You can find very cheap car insurance no deposit plans on the internet by filling out a free online quote application.

This site can help you:

  • Compare auto insurance quotes in all 50 states.
  • Find what companies offer the lowest deposits and rates.
  • Low-cost monthly installment plans are as low as $39 per month.
  • A committed staff of customer service reps is ready to help you anytime.

 Key Takeaways

  • Very cheap car insurance no deposit can help you get insured without a big payment upfront
  • Not every insurer offers these policies, and they are only available in a few states
  • Take advantage of discounts to save even more
  • Get quotes from several insurance providers to find the best and cheapest car insurance with no deposit policies

Conclusion

Now that you understand how to find very cheap car insurance no deposit, it’s time to compare several online quotes. To get started, simply enter your zip code and comparison shop the lowest rates from top national and regional insurers. Save up to $550 with direct rates. Get better coverage today.