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While there are many factors that go into the pricing of your car insurance, you can usually find a provider that fits your budget by doing a bit of research and comparing free quotes. Get started below.


In this article, we'll discuss how to find very cheap car insurance, no deposit required. We’ll look at how insurance policies work, how they’re priced, and finally recommend a few providers known for low premiums and easy payment schedules.

Whenever you shop for car insurance, we recommend getting quotes from multiple insurers so you can compare car insurance coverage and rates. In addition to the insurance company you choose, factors such as your age, vehicle make and model, and driving history can affect your premium, so what’s best for your neighbor might not be best for you.

Simply fill out the form above to start comparing personalized auto insurance quotes and find the best rates.


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Best Providers For Very Cheap Car Insurance (No Deposit)

Instead of looking for a car insurance provider that doesn't require a deposit, look for a provider that offers all-around affordable premiums. If you purchase your policy from a company with reasonable rates, your monthly car insurance payment plans should be affordable, and most won't ask for a deposit anyway.

To do so, you’ll need to look for very cheap car insurance quotes from different companies and compare them. We recently reviewed the best car insurance companies in the industry. To help set you in the right direction, here are the cheapest car insurance providers that we found to have the highest level of customer service and insurance plan options.

These are the top five providers of very cheap car insurance, no deposit required:

Very Cheap Car Insurance (No Deposit) Overall Star Rating Usage-Based Insurance Accident Forgiveness New Car Replacement
1. USAA Auto Insurance 4.8
2. Erie Car Insurance 4.5
3. Root Insurance 4.0    
4. Geico Car Insurance 4.6  
5. State Farm Car Insurance 4.6  

#1 USAA Insurance: 4.8 Stars

Out of all the providers we researched, we found USAA car insurance to have some of the lowest average premiums. But USAA isn’t just inexpensive – we gave the company five stars due to its high-quality customer service, wide variety of discount and reward programs, great coverage options, and superb mobile app.

However, USAA auto insurance is only available to veterans, active military members, and their families, so most motorists won’t be able to take advantage of this company’s auto insurance policies. If you are eligible for auto insurance coverage from USAA, we highly recommend you get a quote. To learn more, read our review of USAA auto insurance.

#2 Erie Insurance: 4.5 Stars

While not available in most states, Erie Insurance is a good choice for drivers looking for very cheap car insurance, no deposit necessary. The insurance provider is known for offering comprehensive and customizable coverage options with very positive customer-reported experiences. On top of several add-on options, Erie offers a number of discounts to eligible drivers. To learn more, read our review of Erie Insurance.

#3 Root Insurance: 4.0 Stars

Root auto insurance is our pick for Best Usage-Based Insurance with affordable long-term rates and mobile claims. It should be noted that this insurance provider is able to provide very cheap car insurance (no deposit) by only ensuring good drivers. Instead of basing your rates mainly on your driving history, Root requires drivers to download their app and track their driving habits for a few weeks before giving a car insurance quote. Root insurance is a good choice if you are a safe driver, don't drive often, or like using your mobile phone to manage your car insurance policy. To learn more, read our review of Root car insurance.

#4 Geico Insurance: 4.6 Stars

In general, Geico auto insurance has very reasonably priced insurance premiums. As the second-largest insurance provider in the nation, the company has a strong financial base, meaning customers shouldn’t experience much difficulty getting claims fulfilled. We’re also fans of Geico’s highly-rated mobile app, which makes getting quotes, updating your policy, and filing claims quick and convenient. To learn more, read our review of Geico auto insurance.

#5 State Farm Insurance: 4.6 Stars

For drivers who aren’t in the military, State Farm auto insurance is an excellent choice. Although State Farm’s average premium isn’t as low as USAA’s, the provider still has low average premiums and a variety of discounts available that can help you save money – including discounts for students, good drivers, and those with multiple policies or vehicles. In business since 1922, State Farm is the largest car insurance provider in the United States and also one of the most reputable. To learn more, read our review of State Farm auto insurance.

To see how these factors will affect your premium specifically, use the tool below for free, personalized quotes.


What Is No-Deposit Car Insurance?

To understand what a no-deposit car insurance policy is, you first need to understand how car insurance payments work. When you buy a car insurance policy, you typically have two options: Pay the entire six or twelve-month premium upfront in a single lump sum, or split it into monthly installments. Some companies have additional options like bi-monthly or tri-monthly payments as well.

If you decide to pay the full cost of your car insurance premium outright, then no-deposit car insurance doesn’t apply to you. However, if you prefer to break up the cost of your premium and make your payments over time, then you may find that the first month’s payment is higher than the subsequent months – especially if you’re starting a policy with a new provider. On the other hand, the first payment for some companies, like Progressive, can actually be lower than the following payments.

Car insurance companies that increase the cost of the first installment may refer to that as a deposit, and it’s usually around 25 percent of the policy cost. When people talk about very cheap car insurance with no deposit, what they’re referring to is a policy that doesn’t require an increased payment for the first installment.

A Sample Insurance Policy

Let’s take a look at a quick example. Imagine you want to take out a policy with Geico, and your quote is $600 for a six-month policy. You can either pay the entire $600 right away or break it into installments. Returning Geico customers have the option to break up the premium into six equal payments of $100, but new customers only have the option to break it up into two, three, four, or five payments.

Now, if you divide it into two or four installments, all your payments will be equal. However, if you break it into three payments, your first payment will be 40 percent ($240), and your second and third will each be 30 percent ($180). If you divide it into five installments, your first payment will be 25 percent ($150), and the following four payments will each be 18.75 percent ($112.50).

In this example, Geico’s four or six equal payments would be considered a no-deposit auto insurance policy, while every other payment plan would be considered to have a deposit. That said, the increased payment is not technically a deposit, just a higher initial payment.

No-deposit car insurance isn’t a widely used term, and some companies say that there is no such thing in the first place. Because of this, it’s important to take caution and carefully vet any company that specifically markets itself as a no-deposit car insurance company. These providers may be untrustworthy or even an outright scam.

Why Do Some Car Insurance Companies Require A Deposit?

Car insurance companies often require more money upfront to reduce the risk of customers canceling before their term is over. The risk reduction is twofold: First, customers are less likely to cancel if they’ve already invested a significant amount of money. Second, if a customer does cancel, the insurance company will already have secured a decent portion of their premium.

For the most part, car insurance deposits only come into play if a customer is purchasing a policy with a new company or if they have a poor credit score. In both of these cases, the provider may ask for a higher initial payment to reduce risk.

How Do Car Insurance Companies Determine Rates?

When searching for very cheap car insurance with no deposit, keep in mind that auto insurance companies base your premium primarily on the following factors:

  • Your vehicle, including the year, make, and model: Car insurance usually includes coverage for damage to your own car, so the item that’s being insured is going to play a major role in how much the insurance costs.
  • Your ageYoung drivers and very old drivers are much more likely to get into accidents than the rest of the population. Because of this, car insurance rates are highest for motorists who are under 25 or over 70.
  • Your driving history: Insurance companies make money by properly gauging risk, and while past performance is no guarantee of future outcomes, it’s the best predictor that an insurance company can have of how you’ll drive once you’re covered under one of its policies. If you have a clean driving record, you can expect a lower rate, but if you have traffic violations, your rate will be significantly higher.
  • Your state: Every state has different minimum auto insurance requirements. While some states require only small amounts of liability coverage, others require bodily injury liability, property damage liability, personal injury protection, and uninsured/underinsured motorist coverage. Plus, every state has its own unique risk profile, so insurance companies will take that into account.

Sample Quote

We reached out for an auto insurance quote for a married couple, ages 30 and 31, with no at-fault accidents in the last three years. Our test drivers owned a 2016 Chevrolet Colorado with 70,000 miles and a 2012 Toyota RAV4 with 110,000 miles. The quotes we received were for full coverage policies, and roadside assistance and rental car reimbursement were included.

Insurance Provider Monthly Payment 6-Month Premium Coverage Details
Geico $126.13 $738.71 100/300/50 BI/PD and UM/UIM, $500 collision deductible, $500 comprehensive deductible, $2,000 MedPay, roadside assistance, and rental car reimbursement
Progressive $96.36
for first month,
for next five months
$486.65 100/300/50 BI/PD and UM/UIM, $500 collision deductible, $500 comprehensive deductible, $2,000 MedPay, roadside assistance, and rental car reimbursement
State Farm $159.88 $959.30 100/300/50 BI/PD and UM/UIM, $500 collision deductible, $500 comprehensive deductible, $2,000 MedPay, roadside assistance, and rental car reimbursement
USAA $164.46 $986.76 100/300/50 BI/PD and UM/UIM, $500 collision deductible, $500 comprehensive deductible, $2,000 MedPay, roadside assistance, and rental car reimbursement

To see how these factors will affect your premium specifically, use the tool below to start shopping for very cheap car insurance with no deposit. 


Can You Lower The Cost Of Your Car Insurance Deposit?

This is a tough question to answer. Remember: Agreement on whether car insurance deposits even exist is up for discussion. If you want to avoid a higher first month’s payment, the best idea is to pick one car insurance company and stick with it for a few years.

That said, if you’re looking for very cheap auto insurance with no deposit, your best bet is to drive safely, live in a state with low minimum insurance requirements, and drive a safe car. It also helps to be over 25 years old but under 70.

FAQ About Very Cheap Car Insurance, No Deposit Necessary

Can I get no down payment car insurance?

Many car insurance providers give drivers the option to pay for their policies in equal payment installments, with no money down. Some companies only offer this convenience to existing customers, but others will extend the offer to new customers as well. This would be considered car insurance with no deposit.

Do you pay for car insurance upfront?

Motorists can usually choose between paying the full cost of their annual premium upfront or splitting it into monthly premium payments. Some providers require a larger first payment, while others give drivers the option to split the premium into equal installments.

Can you pay half of your car insurance?

Some car insurance companies are happy to accept two 50-percent payment installments for a policy. There are also options for monthly payments with six- or twelve-month policies. However, unless your policy is set up this way, you cannot pay only half of your bill due and expect to have coverage.


In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.

  • Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
  • Availability: We consider availability by state as well as exclusions for specific groups of drivers.
  • Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
  • Cost and Discounts: Our research team reviews sample quotes for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
  • Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
  • Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.

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