It’s impossible to get car insurance without an upfront payment—in fact, if you’re promised a policy with the “first month free,” you’re likely looking at a scam. But paying your car insurance premium in monthly installments can reduce the amount you need to pay to activate a policy.
You always need to make a payment before you can get coverage. The best “no down payment” car insurance is actually just very cheap car insurance
on a monthly payment plan—and car insurance broker app Jerry is here to help you find it. As a licensed insurance broker
and trusted quote comparison app, Jerry
has the tools to track down the lowest rates on whatever auto coverage you need. Read on for tips to lower your first month’s premium. How to get auto insurance with a low down payment
It’s impossible to get car insurance without paying some money upfront. But the “down payment” or “deposit” on your car insurance policy isn’t a separate charge—it’s just a percentage of the annual premium, along with state fees that apply to all insurance policies.
In other words, the best way to find very cheap car insurance without a large down payment is to find a low premium that you can pay in monthly installments. Think of it this way:
The lower your total premium, the lower your first month’s payment will be.
Cutting your insurance payment into monthly premiums instead of an annual or semi-annual payment reduces the amount you need to pay at any one time.
To find the lowest monthly payment, you’ll need to compare car insurance quotes from multiple insurance providers. A good credit score, continuous insurance coverage, and a clean driving record
can set you up to find the best rates. Key Takeaway True no deposit car insurance doesn’t exist except in the world of scams. Instead of “no deposit car insurance,” start looking for low deposit car insurance.
How much does a car insurance down payment cost?
The exact cost of your insurance down payment will depend on your total premium, the payment plan you’ve selected for your policy, and the discounts you may qualify for.
Let’s look at an example. Say you’ve found a six-month policy with Progressive
for a total premium of $450 with a monthly payment plan. Your first month’s payment—the down payment you need to make before your auto insurance coverage is active—will likely be a higher percentage of that total sum. Let’s say that your first payment is 20% of the premium, and the remaining five payments are each for 16%. In that case, your down payment would be $90, followed by five more payments of $72 per month. That’s a lot more manageable than putting down $450 upfront! But Progressive offers a variable discount for automatic payments, so you might be able to shrink that initial payment even further by signing up for autopay!
Keep in mind that this is all theoretical—your actual auto insurance rates will vary based on your profile, and the payment plans available to you will depend on your credit score, your insurance history, and which company you decide to go with.
Cheapest car insurance companies
By now, it’s clear that the insurance company with the best no down payment car insurance is really just the company with the cheapest rates and the best payment options. So which company offers the cheapest insurance?
Unfortunately, there isn’t a single answer to that question. Remember, insurance companies analyze your whole profile before setting your rate, and every company gives a different weight to each factor. For instance, Progressive cares less about your driving history than some other insurers, so high-risk drivers with serious charges like a DUI on their record might find the best rates with Progressive. But for other drivers, USAA
, State Farm
, or Nationwide
might offer better premiums—or better payment plans. Compare the average rates in the table below to see which companies might offer you the best rate on the car insurance coverage you need.
| Car Insurance Companies | Monthly Rate | Semi-annual Rate | Annual Rate |
|---|
| Progressive | $302 | $1,811 | $3,622 |
Clearcover | $277 | $1,664 | $3,329 |
Bristol West | $506 | $3,038 | $6,077 |
Safeco | $275 | $1,650 | $3,299 |
Mercury | $279 | $1,674 | $3,348 |
Travelers | $249 | $1,495 | $2,990 |
| Allstate | $314 | $1,884 | $3,768 |
National General | $314 | $1,884 | $3,768 |
| Nationwide | $229 | $1,373 | $2,746 |
Electric | $335 | $2,008 | $4,015 |
State Auto | $327 | $1,964 | $3,928 |
Plymouth Rock | $375 | $2,252 | $4,505 |
Kemper | $338 | $2,025 | $4,051 |
| AAA | $422 | $2,531 | $5,063 |
Encompass | $454 | $2,724 | $5,449 |
Trexis | $339 | $2,035 | $4,069 |
Dairyland | $256 | $1,539 | $3,078 |
Infinity | $674 | $4,046 | $8,091 |
First Acceptance | $339 | $2,033 | $4,065 |
Embark General | $345 | $2,071 | $4,141 |
The General | $625 | $3,749 | $7,497 |
Commonwealth Insurance | $402 | $2,415 | $4,830 |
Mapfre | $215 | $1,293 | $2,586 |
Metlife | $315 | $1,893 | $3,786 |
Oregon Mutual | $394 | $2,362 | $4,723 |
Why do car insurance companies require a down payment?
Every insurance company requires some form of down payment to activate your policy and solidify the insurance contract. Once the insurance provider makes the offer of coverage and you accept said offer by making the payment, this locks your coverage in place.
Car insurance providers are all about risk. When setting your rate, insurance companies will analyze a ton of factors that essentially help them to evaluate how much risk you pose as a policyholder. Those factors include:
Driving record: A history of accidents and violations tells insurance companies you’re likely to generate claims. A clean record, on the other hand, shows them you’re likely to cost them less—so they’ll often charge less!
Continuous coverage: Having a lapse of insurance coverage for any reason can negatively impact your rates—continuous coverage signals to the insurance companies that you are a good risk and have responsible payment habits.
Age: Young drivers, especially teens, have the highest statistical rate of accidents and violations. Insurance companies hike up rates for drivers under age 25.
Gender: Statistics also show that male drivers have a higher rate of accidents, violations, and claims. You can expect your car insurance rates to reflect that.
ZIP code: The rate of accidents, thefts, and weather damage where you live can all affect the cost of car insurance, especially if you have full coverage.
Vehicle: Your vehicle’s make and model, size, engine type, safety ratings, and value all influence the cost of a policy.
Credit score: Credit is a measure of your ability to pay your bills, so insurance companies typically give the best rates and payment plans to drivers with good credit.
Mileage: The less you drive, the less likely you are to generate claims.
While you can’t find car insurance with no deposit, understanding the factors that go into setting your rate can help you find the lowest monthly car insurance payment. Compare quotes from several auto insurance companies before you put down money on a policy.
MORE: 10 ways to get cheap car insurance that’s actually good
Is no deposit car insurance a scam?
Yes and no. If you see anyone promising to cover your car with the first month entirely free, that’s a scam. No legitimate insurance company offers coverage without any kind of payment upfront.
But “no deposit car insurance” often just means an auto insurance policy that’s paid out in regular installments instead of an annual or semi-annual lump sum. Different companies offer different payment plans: some won’t allow monthly payments, while others only allow drivers without any insurance lapses
to make monthly payments. Check before you sign up to see what kind of payment plan is offered. Other types of car insurance scams to look out for include:
Temporary car insurance: If you’re having trouble finding affordable car insurance, a temporary policy
might sound good—but beware! No reputable insurance company offers policies shorter than six months. Quotes for a fee: If anyone asks you to pay for auto insurance quotes, don’t. You should never pay for quotes, only for a legitimate car insurance policy. How to find affordable car insurance with a low down payment
There’s no such thing as a free lunch—and there’s no such thing as free car insurance. But with a few tips and hacks, you can lower your insurance costs and find the right coverage at a price you can live with. Here’s how.
Compare multiple quotes
Because finding the best low-deposit car insurance is all about finding the lowest premium, comparing multiple rates is absolutely essential. Unfortunately, comparing quotes can be time-consuming, and dealing with more than a few companies gets confusing fast.
That’s why Jerry
exists—to expand the reach of your search while cutting down on the time and effort it takes. Jerry partners with over 55 top-rated insurance companies, and the app can compare real-time quotes for any policy you’re eligible for in just 45 seconds. Jerry’s quotes are completely free (remember, being asked to pay for quotes is a red flag!), and you’ll pay the same rate as if you went through the insurance company directly. Even better, you’ll get a team of live insurance agents standing by ready to answer any questions you have. They’ll even handle the paperwork when you find the quote you need so that you don’t have to waste time filling out endless forms.
Manage your budget
When you’re searching for insurance quotes, it’s a good idea to take stock of your budget and see if you can free up extra cash for the payments you need to make—especially that larger first payment.
If your car is financed, auto loan refinance
could be one way to bring down your monthly car payment so that you can afford the insurance you need. Refinancing isn’t for everyone, but if you purchase car insurance through Jerry
, you’ll be able to see refinancing offers in the app if you’re eligible. Opt for a lower coverage level
Are you looking for full coverage insurance to meet a lender’s requirements or to protect a new vehicle—or do you just want to pay the lowest amount possible?
Full coverage car insurance refers to the combination of basic liability insurance
with collision
and comprehensive insurance
. Car insurance is required by law in just about every state, but so-called “full coverage” insurance isn’t. While it’s a good idea to buy it if you can afford it—or if the lender that issued your auto loan requires it—full coverage
is generally the most expensive coverage option. Know what car insurance is required by law in your state
and check the terms of your auto loan before you start shopping. If you’re able to get by without full coverage, sticking to minimum liability insurance will give you the lowest possible down payment. | State | Full-coverage Rates | Minimum Rates | Savings |
|---|
| AK | $194 | $182 | $63 |
| NY | $548 | $392 | $123 |
| DC | $346 | $211 | $29 |
| HI | $319 | $163 | $98 |
| MD | $396 | $245 | $87 |
| SC | $371 | $216 | $19 |
| NJ | $435 | $262 | $48 |
| DE | $326 | $204 | $16 |
| GA | $394 | $215 | $27 |
| MA | $242 | $195 | $14 |
| RI | $426 | $191 | $4 |
| LA | $531 | $187 | $31 |
| CT | $363 | $233 | $57 |
| FL | $446 | $204 | $57 |
| MI | $296 | $212 | $26 |
| NV | $351 | $212 | $60 |
| CO | $316 | $128 | $12 |
| PA | $290 | $141 | $14 |
| KY | $317 | $199 | $25 |
| NC | $218 | $147 | $24 |
| VA | $264 | $154 | $8 |
| WA | $262 | $129 | $2 |
| CA | $348 | $121 | $28 |
| ND | $337 | $112 | $1 |
| TX | $305 | $147 | $39 |
| MO | $258 | $152 | $13 |
| OR | $257 | $170 | $15 |
| MS | $278 | $99 | $5 |
| TN | $261 | $116 | $2 |
| AL | $242 | $111 | $10 |
| AR | $276 | $104 | $7 |
| AZ | $281 | $153 | $15 |
| MN | $248 | $152 | $11 |
| SD | $187 | $133 | $13 |
| WV | $308 | $124 | $4 |
| NE | $215 | $139 | $4 |
| KS | $248 | $123 | $2 |
| MT | $168 | $102 | $18 |
| WI | $191 | $117 | $5 |
| OK | $273 | $122 | $17 |
| IL | $229 | $132 | $19 |
| NM | $226 | $117 | $0 |
| NH | $173 | $143 | $10 |
| WY | $183 | $105 | $13 |
| IN | $207 | $118 | $9 |
| UT | $241 | $159 | $19 |
| OH | $203 | $127 | $7 |
| IA | $176 | $108 | $2 |
| VT | $135 | $81 | $25 |
| ID | $205 | $102 | $16 |
| ME | $154 | $147 | $21 |
Look for discounts
Car insurance discounts don’t start and stop with bundling home and auto policies
. While that’s the discount you’ll hear most about on TV, most insurance companies offer way more discounts that could save you a ton on your policy—especially if you stack them! Here are just a few of the most popular discounts: | | |
|---|
| Maintaining a clean driving record or installing a telematics device to track your driving habits could earn you a discounted rate. | |
| If you have multiple cars on the same policy, many companies will knock a percentage off your rate. | |
| For teen drivers, taking an approved driver education course could result in premium savings. | |
| Drivers under 25 years old who are enrolled in school full time and have at least a 3.0 GPA or B average can qualify for discounts. | |
| If you’ve never had a lapse in coverage, insurers will reward your consistency with discounts. | |
| Transferring funds directly from your bank rather than paying with a credit or debit card or check could earn you a slightly discounted rate. | |
| If you’re paying monthly, an on-time payment every month for 12 months could qualify you for a lower rate. | |
The main popular car insurance discount that typically isn’t compatible with a monthly payment plan is a paid in full discount. If you’re looking to lower your overall insurance costs but can afford a bigger up-front payment, consider paying in full to secure that lower premium.
Change your payment date
Sometimes it’s all about timing. If you’re looking for no deposit auto insurance to get through a tight time, ask about changing your payment date once you’ve signed up for a policy. Some insurance companies will allow you to move your due date so that you’re set up to make your payment on time. You should also look into your company’s grace period for missed payments.
Choose a higher deductible
If you’re looking for full coverage car insurance without a large down payment, consider choosing a higher deductible. The deductible is the set amount you’ll pay out of pocket before your coverage kicks in on a collision or comprehensive claim, and the higher it is, the less you’ll pay to start and maintain the policy.
But be careful with this one. Never choose a deductible that’s higher than what you could realistically pay in the event of an accident!
MORE: 10 ways to get cheap car insurance that’s actually good
No reputable car insurance company will sell you a policy without requiring some type of up-front payment. Look for an insurance provider that gives you a low quote and will allow you to make monthly payments instead of a large lump-sum annual payment.
Every single driver will find different quotes based on their unique profile, but you’ll typically find the lowest car insurance payment if you have good credit and a clean driving record and opt for minimum coverage instead of full.
No. If you’re ever promised auto insurance coverage without any money down, you’re being scammed and could face serious consequences for driving without insurance
. Instead, get free quotes with Jerry
to find the lowest car insurance payment possible. 
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