Very Cheap Car Insurance No Deposit

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Very Cheap Car Insurance No Deposit

If you need to cover your vehicle with the least amount of money upfront, then a very cheap car insurance no deposit plan can be a solution. Not every carrier has no deposit auto insurance coverage, but several do.  This article will explain in-depth how to get the cheapest auto insurance rates with no down payment required.

Lately, auto insurance rates have gone up and look to rise in the foreseeable future. For qualifying drivers, it’s still possible to get good coverage at affordable rates. This includes plans with no deposit and monthly rates that start under $39. Just enter your zip code to compare online quotes and answer a few simple questions. All it takes is about 3-4 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.

With a very cheap car insurance no deposit plan, your initial monthly payment will be considered 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

Many people mistakenly think they will get first month free car insurance with this type of plan. This is simply false. With a very cheap car insurance no deposit plan, you still need to make the first payment before your policy is activated. No insurance company offers free auto insurance for a week or a month.  

The idea of getting free car insurance appeals to many, especially those low on cash. If you qualify, your first month’s total payment can be under $50 a month with a no-deposit plan. You will likely need a liability-only policy for under $50 a month to get insured. Check rates where you live in about four minutes. Enter your zip code to get started.

Who Needs Low-Cost Car Insurance with Nothing Down?

People who are low on funds and have very little money for car insurance deposits need to 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.

Other situations might be a person between jobs or a student needing the cheapest coverage possible. While these types of plans do cost more, they help drivers who are low on cash get covered with the least upfront costs.

States that Allow No Deposit Auto Insurance

There are only seven states that currently allow this No-Deposit auto insurance coverage. They include:

  • Arizona
  • California
  • Florida
  • New York
  • 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 cheap vehicle to insure. In addition, New York has several low-cost insurers that offer no deposit coverage.

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


Company State Minimum Liability 50/100/50
USAA $429 $512
State Farm $443 $535
Farm Bureau $452 $551
Nationwide $469 $573
Progressive $481 $592
Auto-Owners $558 $647
Esurance $576 $664
21st Century $597 $698
Farmers $632 $713
Met $705 $799
Travelers $776 $874
 (Rates given are based on a twelve-month policy, with a 45-year-old driver, who has a clean DMV record, driving a 2012 Toyota Camry)

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Compare Very Cheap Car Insurance No Deposit Plans

Finding car insurance companies that don’t require a deposit can be challenging, and only a handful of states allow no-deposit policies. It can take hours of phone calls to insurance companies and agencies to find this kind of coverage. Today, finding and comparing no-deposit auto insurance plans online is much easier. 

By comparing quotes, you can review the deposit requirements based on your unique profile and coverage needs. To get up to ten quotes where you live, enter your zip code and fill out a quick application. If you cannot find very cheap car insurance with no deposit, you can often find low deposit car insurance, starting at just $20 down.

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

Difference in Cost No Down Payment Full Payment
First Payment $140 $1,596
Remaining Monthly Payments $1,540 $0
Cost Savings $0 $84

In the example above, if you paid for the policy in full, you’d save about 5%. Many people just don’t have the savings to pay in full and need monthly installment payments.  

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 will qualify 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. A high-risk driver may be required to pay a deposit of as much as 30% of the overall premium.  

Insurance carriers use complex models to predict risk and then assign premiums based on that risk calculation. 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. Some high-risk drivers, like those convicted of a DUI, might have a hard time finding any insurer that will cover them.

Most Auto Insurance Providers Don’t Offer Very Cheap Car Insurance No Deposit Plans 

Most insurance companies 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 the following:

  • 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, getting very cheap car insurance with no deposit will be nearly impossible. You will likely be required to pay a deposit amount of 20% to 30% of the overall premium.   

Several companies specialize in providing coverage to high-risk drivers, including The General Insurance, which has some of the best rates. If you are a high-risk driver, compare the best rates online with the lowest deposit requirements. Enter your zip code to get started.

Very Cheap Car Insurance No Deposit 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 premium amount. This can save you 2% or more of the policy’s total cost. 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. As stated earlier, 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 your insurance premiums:

  • Annually
  • Semi-Annually
  • Quarterly
  • Monthly
very cheap car insurance no deposit

Cheapest Auto Insurance Coverage with No Down Payment

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

To illustrate this, let’s say you live in Florida and recently used up all 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 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 of $56. In this case, you would 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 underinsured but will save you considerable money.

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

Some people mistakenly believe they are 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. Often, 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 annually 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, 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, you would pay $100 each month to cover the remaining balance owed. You can get insured with a lower initial cost with zero deposit coverage. However, you will be making larger monthly installment payments going forward.


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Very Cheap Car Insurance No Deposit 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. All insurers do not offer this type of policy and is less common among the big national insurers. It is often provided by smaller non-standard insurers offering niche policies, such as auto insurance with a $0 down.

Getting Very Cheap Car Insurance No Deposit

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 that they have the best rates because a company is large, has been around for over 100 years, and runs TV commercials all the time. 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 possible 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. You have control over this, 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 must 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 possible.

Consider Mileage-Based Auto Insurance

Driving less than 10,000 miles per year 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 offers 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. You only need to give some basic information to apply for a free quote. 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. You can often get a small discount if you set up automatic payments.

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 technological advancements, it’s easier and faster than ever 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, cell phones. 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, don’t feel bad about switching to another company if you find a lower rate. Carriers will cancel your insurance and refund you any outstanding balance owed, usually in less than 10 minutes.

Getting No Deposit and Low-Down Payment Quotes Has Never Been Easier

We have provided our satisfied customers free quotes for over fifteen 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 on Very Cheap Car Insurance No Deposit

  • 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.


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 and save more today.