You can’t get car insurance without making an initial payment—but many major insurance companies offer monthly payment plans and discounts that can make the cost to activate your coverage as low as $73 or less.
QUICK LOOK
- You’ll always need to make an initial payment to activate a car insurance policy.
- Opting for monthly payments and stacking discounts can lower your upfront costs.
- The average cost to start a car insurance policy is $73 for minimum coverage and $128 for full coverage.
- MAPFRE, Clearcover, and Nationwide are three of the best companies for low down payment car insurance.
- Companies advertising “first month free” auto insurance are scammers after your personal information.
How to get auto insurance with a low down payment
The reality: You’ll always need to make a payment before activating a car insurance policy—even if it’s just the first month’s payment. True “zero deposit” car insurance with no money upfront doesn’t exist outside the world of scams.
The alternative: Look for low deposit car insurance by comparing car insurance quotes from multiple providers, asking about monthly payment options, and stacking discounts. While splitting your premium into monthly installments will raise the overall cost of coverage, it’ll keep your up-front costs low if you need quick, cheap coverage.
How to get it: Start by comparing auto insurance rates from at least three to five insurance providers to find the company with the lowest car insurance premium for you. Look for:
- Companies that offer monthly payment plans (like Allstate, Nationwide, and Progressive)
- Companies with strong discounts that match your profile (like accident-free discounts or good student discounts)
- Companies with responsive customer service teams
Key TakeawayTrue no deposit car insurance doesn’t exist outside of scams. Instead of “no down payment car insurance,” start looking for low down payment car insurance.
“A down payment is always required to start a new car insurance policy, but there are ways to make it less expensive.
First, look at what service fees you can avoid by setting your policy for automatic payments with a bank account instead of using a debit or credit card. Next, look at your coverages and remove extras that you can add back later, like towing and lockout coverage and rental reimbursement.
Finally, split up the down payment if necessary. Some providers will let you spread the payments out over different bank accounts and even allow a friend or family member to help make a partial payment on your behalf.”
Pay-per-mile car insurance: The key to cheap no-deposit insurance?
If you need to lower your car insurance costs and don’t drive very often, pay-per-mile auto insurance coverage could be the key to avoiding a big lump-sum down payment.
In a regular car insurance policy, you’ll be charged for at least the first month up front—and, in some cases, you’ll pay extra to account for the cost of opening a policy. But with a pay-per-mile policy, you only pay a daily rate as low as $1.50 per day, plus additional costs for every mile you drive.
The best pay-per-mile car insurance companies
| Allstate Milewise | Nationwide SmartMiles | Metromile | Mile Auto | |
|---|---|---|---|---|
| Sample base rate | $1.50 per day | $60 per month | $29 per month | $48 per month |
| Sample per-mile rate | $0.06 | $0.07 | $0.06 | $0.08 |
| How it’s tracked | Plug-in device | Plug-in device or connected car | Plug-in device | Odometer photo |
| Availability | 21 states | 45 states | 8 states | 11 states |
| Average reported savings | 25% to 50% | 22% | 47% | 30% to 40% |
Who it’s not for
If you use your car every day and drive an average of 35 miles per day or more, pay-per-mile insurance likely won’t save you any money.
Who it’s for
Anyone who drives less than about 10,000 miles per year, or 27 miles per day, is a good candidate to save with pay-per-mile insurance. Remote workers, stay-at-home parents, and anyone with a short commute or access to public transportation can use pay-per-mile insurance.
The best car insurance companies for low deposit auto insurance
We ran the numbers and identified the five cheapest car insurance companies for drivers looking for minimum liability insurance with a low down payment:
| Insurance company | Average monthly rate |
|---|---|
| Mapfre | $73 |
| Trexis | $90 |
| Metlife | $90 |
| Nationwide | $98 |
| Aspire Advantage | $104 |
An important disclaimer: Some insurance companies 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.
Best car insurance companies for cheap full coverage auto insurance
If you need full coverage auto insurance, the following companies are your best bet:
| Insurance company | Average monthly rate |
|---|---|
| Mapfre | $128 |
| Nationwide | $173 |
| Clearcover | $177 |
| Commonwealth Insurance | $180 |
| Progressive | $180 |
Why Nationwide is the best car insurance company for drivers with poor credit
Nationwide doesn’t just have some of the lowest monthly rates out of any insurer—they’ll also keep your annual premium low if your credit score drops, unlike most major insurers.
New research from the Consumer Federation of America reveals that GEICO and State Farm charged policyholders with poor credit 91% more and 225% more, respectively, than drivers with excellent credit—even if the poor-credit drivers had a perfect driving record.
By comparison, Nationwide raises rates by an average of just 57% for drivers with poor credit.
Learn more: Compare the best online quotes for car insurance
Avoid “first month free” scams
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.
To avoid car insurance scams, follow these tips:
- Never pay for quotes: Any reputable insurance company offers free quotes to prospective policyholders.
- Avoid “one day car insurance” scammers: The shortest policy length offered by legitimate car insurance providers is six months.
- Trust your gut: If you’re feeling pressured by an insurance agent or broker, don’t buy the policy unless you’ve read the fine print and confirmed that everything’s above board.
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.
An insurance down payment offsets risk to your insurance provider. Key risk factors for car insurance include:
- Driving record: A history of accidents and violations tells insurance companies that you’re a high-risk driver likely to generate claims. A clean driving history, 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.
Six ways to shrink your car insurance down payment
There’s no such thing as free car insurance. But with a few tips and hacks, you can lower your total premium and find the right coverage at a price you can live with. Here’s how.
1. Compare auto insurance quotes
The only way to lower your car insurance down payment is to compare rates from multiple insurance companies. Use a trusted insurance broker or comparison tool like Jerry to quickly compare rates and find affordable car insurance based on your driver profile.
The app will show you the first month’s premium for three different levels of coverage—Basic, Standard, and Preferred—along with potential discounts and tips to tailor your coverage options to your needs.
2. Manage your budget
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 refinancing could 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 any eligible refinancing offers in the app.
3. Opt for a lower coverage level
While it’s a good idea to buy full coverage car insurance if you can afford it—or if the lender that issued your auto loan requires it—dropping full coverage or picking a lower liability limit could reduce your insurance down payment.
Know what car insurance is required by law in your state and check the terms of your auto loan before you start shopping.
4. Change your payment date
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.
5. 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.
6. 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 insurance plan—especially if you stack them! Here are just a few of the most popular discounts:
| Discount | Description | Average savings |
|---|---|---|
| Safe driver discount | Maintaining a clean driving record or installing a telematics device to track your driving habits could earn you a discounted rate. | 5% – 30% |
| Multi-car discount | If you have multiple cars on the same policy, many companies will knock a percentage off your rate. | 10% – 20% |
| Driver training discount | For teen drivers, taking an approved driver education course could result in premium savings. | 8% – 10% |
| Good student discount | 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. | 5% – 25% |
| Continuous insurance discount | If you’ve never had a lapse in coverage, insurers will reward your consistency with discounts. | 10% – 15% |
| Electronic funds transfer (EFT) discount | Transferring funds directly from your bank rather than paying with a credit or debit card or check could earn you a slightly discounted rate. | 2% – 3% |
| Responsible payer discount | If you’re paying monthly, an on-time payment every month for 12 months could qualify you for a lower rate. | 5% |
Expert tip 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.
FAQ
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Licensed Insurance Agent
R.E. Fulton is an expert insurance writer specializing in car ownership topics from car shopping and loan advice to insurance and repair guides. R.E.’s mission is to create unique and accessible content that helps readers to become more successful and independent car owners. R.E. has written and edited over 900 high-performing articles for Jerry, with an average of 1 million+ views. As a senior writer on Jerry’s editorial team, R.E. draws on over 10 years of experience as a professional writer and digital publishing specialist. Prior to joining Jerry’s editorial team in 2021, R.E. worked as a writing coach at Columbia University, the Rochester Institute of Technology (RIT), and the University of Rochester. They serve as a managing editor for peer-reviewed history publication Nursing Clio, where their work has appeared regularly since 2015.
Kathleen Flear is an expert insurance writer and editor who previously lead up Jerry’s editorial team as director of content. Kathleen empowers drivers to make smart car ownership decisions through best-in-class articles on insurance, loans, and maintenance. Prior to joining Jerry in 2021, Kathleen served as managing editor for a team of SEO content marketing professionals at Article-Writing.co and worked as a freelance writer and editor for a range of digital publications, including Chicago Literati magazine and Golden Words. She earned a bachelor’s degree in English language and literature from Queen’s University, and a master’s degree in creative writing and fiction from Sierra Nevada University.
