5+ years writing insurance and personal finance topics
Auto, home, health, and life insurance expertise
Elizabeth has extensive insurance industry experience, having written for Insureon, Rate Retriever, and Insurify. She’s also finance and insurance editor for Car and Driver.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
Clinical Professor of Finance, University of San Diego
Dan is a well-recognized and widely quoted financial services expert, regularly appearing in a variety of national and local media as a subject matter expert.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
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Cheapest recent rates
Drivers using Insurify have found quotes as cheap as $35/mo for liability only and $42/mo for full coverage.
*Quotes generated for Insurify users within the last 10 days. Last updated on August 15, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from August 15, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on August 15, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from August 15, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Almost every reputable car insurance company will require some sort of deposit or down payment before providing you with coverage. But if you’re strapped for cash, some insurers only require the first month’s premium as a deposit, rather than a separate fee.
You can find other ways to save money on car insurance — including discounts, payment plans, and comparison shopping — to get the lowest rates available to you.
Quick Facts
If you choose to pay for your new car insurance policy in installments, the insurance company will require a down payment to initiate the policy.[1]
Your down payment may be the first month’s premium paid in advance or a percentage of the total premium.
A down payment counts toward your total premium. It’s not an additional fee.
No-deposit car insurance doesn’t exist
Car insurance with no deposit or down payment doesn’t exist, as insurers don’t want to take on the risk of insuring you without some sort of payment.
The misconception of no-deposit car insurance may come from the differences in down payment amounts among companies and for different drivers. Deposit amounts can vary based on many factors, including the insurance company, your state, driving history, credit history, and more.
For example: Let’s say your insurer last year only required you to pay the first month’s installment as a down payment. But this year, you got into an at-fault accident, and now your new insurer wants more than one month’s premium as a deposit.
You may think the deposit amount is your first month’s premium plus an added fee — but it’s really just a higher percentage of the total premium.[2]
Find Coverage with a Low Down Payment
Minimum-coverage policies start at $18/mo.
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Why do insurance companies require a down payment?
Insurance companies require a down payment because it protects them from significant risk during the first month of the policy. When you sign up for car insurance coverage, your insurer is agreeing to take on financial responsibility for various claims outlined in the policy, so it needs a deposit or down payment to offset that risk.
Is no-deposit car insurance a scam?
You should be wary of any car insurance company offering no-deposit car insurance. No reliable insurance company will give you a policy without some sort of down payment.
Keep an eye out for insurance companies that require the first month’s payment as a deposit rather than a separate charge. They may advertise the policy as “no deposit” since the money goes toward your policy costs, but you’ll still need to pay this money before your coverage kicks in.
If a company claims to offer true no-deposit or zero-down car insurance without requiring any money up front, it’s likely a scam. No matter where you buy your insurance, it’s smart to read reviews and check ratings before committing to a policy.
How to lower your down payment
If you want to find the best deal on car insurance and lower your down payment, you can do a few things to save money. Follow these tips to decrease your deposit and monthly premium:
1. Compare multiple car insurance quotes
2. Consider pay-as-you-go insurance
3. Ask for discounts
4. Reduce car insurance coverage
Compare multiple car insurance quotes
Best for: All drivers
You should always compare car insurance quotes before buying a policy. Every insurer calculates rates differently, and each driver has unique characteristics, such as their location, driving record, and age, so rates can differ drastically. The cheapest car insurance company for you may be different from the cheapest option for your parents, for example, given their age.
Since most insurers will ask for the first month’s premium as a deposit, finding cheaper insurance through quote comparison can lower your down payment.
Consider pay-as-you-go insurance
Best for: Safe or low-mileage drivers
If you don’t drive much, you may benefit from pay-as-you-go or pay-per-mile insurance. These types of insurance are similar though not entirely the same.
Pay-as-you-go insurance — also known as usage-based insurance — charges you based on how much and how well you drive.[3]Pay-per-mile insurance charges you based on how many miles you drive on top of a base rate.
These types of policies typically have lower down payment requirements. But they’re not without risk. You may not get the same level of coverage as you would with typical full-coverage car insurance. With pay-as-you-go insurance, the insurer can even penalize you for poor driving, so consider how carefully you drive before signing up.
Here are the top insurers for pay-as-you-go car insurance.
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
7.0/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$231/mo
Launched in 2021, Hugo is currently the only insurance company offering policy terms as short as three days and the ability to make smaller, more frequent micropayments. Drivers open an account with Hugo without paying a down payment, and choose their policy term. Hugo sells policies for three, seven, 14, or 30 days, or six months, and offers minimum coverage liability insurance. Hugo no longer sells full-coverage policies, and liability policies are limited to state minimums – you can’t buy higher liability limits.
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
7.0/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$69/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$116/mo
Owned by Lemondate Insurance, Metromile is a pay-per-mile car insurance company that debuted in San Francisco in 2011. The company tracks customer mileage through an in-car device. Customers pay a monthly rate plus a set amount (usually pennies) for every mile they drive. Low-mileage drivers could realize significant savings with Metromile: the company says customers who drive 2,500 miles or fewer can save about $947 annually. However, the company isn’t rated by A.M. Best, and has more than seven times the number of expected complaints in the National Association of Insurance Commissioner’s Consumer Complaints Index.
Pros
Low mileage drivers could realize significant savings
Most full-coverage policies include free pet injury protection for covered claims
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
7.5/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$57/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$106/mo
Mile Auto is unlike other auto insurance companies in that it bases rates on the number of miles you drive. The company says low-mileage drivers can save up to 40% compared to a standard policy.
While Mile Auto does require drivers to report mileage, it asks for a photo of your odometer rather than track your driving with a telematics device. Your rate includes a base rate plus the rate for miles driven.
You won’t find an A.M. Best rating for Mile Auto because it doesn’t underwrite its own policies. However, it notes that its underwriter has an “Excellent” rating and its policies are backed by one of the world’s largest reinsurers.
Pros
Low-mileage drivers may see significant savings
You don't have to install a telematics device in your car
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.7/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$85/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$186/mo
Nationwide offers one of the most widely available pay-per-mile car insurance programs. SmartMiles allows low-mileage drivers to pay a monthly base rate plus a per-mile charge each month. You participate in the program either with a telematics device that goes in your car or with an eligible connected car.
Pros
Available in all states except Alaska, Hawaii, Louisiana, North Carolina, New York, and Oklahoma
10% renewal discount available for safe driving behavior
Cons
Requires telematics tracking
Poor driving habits could negatively affect your rates
Nationwide beats Allstate in automobile coverage and lowered my deductible by $1,500.
Samantha - August 12, 2024
Verified
Increasing Prices
The more loyal I am to them, the higher my monthly rate becomes. It's horrible.
…
Ask for discounts
Best for: Most drivers
Most car insurance companies offer a variety of car insurance discounts. Consider your situation and which offers you may qualify for, such as good student, loyalty, and defensive driving discounts. Ask your insurance agent to check for you, or simply research an insurer’s website to learn which discounts it offers.
Reduce car insurance coverage
Best for: Low-risk drivers, drivers with no financing costs
Consider reducing your coverage level. Liability car insurance costs significantly less than full coverage. But it won’t cover damages from collisions or weather damage.
Liability coverage is only good for drivers who don’t drive frequently or can afford to pay vehicle expenses out of pocket. If you drive a lot and wouldn’t be able to pay for significant vehicle repairs, you should probably carry full coverage. If you took out a loan to pay for your car or lease it, your lender or leasing company will require you to carry full coverage anyway.
The following table illustrates the difference in coverage costs among top insurers, according to Insurify data.
The below rates are estimated rates current as of: Thursday, August 1 at 12:00 PM PDT.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
No-deposit car insurance FAQs
If you’re on a budget, it’s possible to find affordable car insurance. Here’s some additional information that might help as you research different policies.
Do all car insurance companies require a deposit or down payment?
Yes. All car insurance companies require some form of payment up front before you can get coverage. This is a way for insurers to reduce risk.
Which auto insurance companies don’t require a down payment?
Every car insurance company requires a down payment in the form of the first month’s premium. However, many car insurance companies don’t require a secondary deposit on top of the initial premium, including:
This list is not exhaustive, so it’s a good idea to contact a car insurance company directly if you have questions about its down payment requirements.
Which companies have the cheapest car insurance?
COUNTRY Financial, NJM, and Auto-Owners have the lowest car insurance rates, according to Insurify data. But not every driver may be able to get coverage from these companies.
State Farm and GEICO are two nationally available insurance companies that offer some of the cheapest policies, so getting quotes from them is certainly a good start.
Every driver is unique — rates depend on different things like your driving record, credit score, and your ZIP code. You may find cheaper insurance with another company, so always compare quotes from multiple insurers before buying a policy.
Elizabeth Rivelli is a freelance writer covering insurance and personal finance. She has extensive knowledge of various insurance lines, including property and casualty, health, and life insurance. Her byline has been featured in dozens of publications, including Investopedia, Forbes, Bankrate, NextAdvisor, and Insurance.com.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
Clinical Professor of Finance, University of San Diego
Dan is a well-recognized and widely quoted financial services expert, regularly appearing in a variety of national and local media as a subject matter expert.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
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