Is It Possible to Get a $20 Down Payment for Car Insurance?

You can get car insurance with a low down payment from several companies, such as Farmers, Progressive, State Farm and USAA.

However, it’s rare to find plans with deposits as low as $20. You’ll have to purchase state minimum insurance if you hope to get this deal since your down payment is affected by how much insurance you need.

USAA, which offers the cheapest liability-only policy, requires a deposit of around $41. Although you may have to pay more out-of-pocket in the long-run, car insurance with a low down payment is affordable for the short term, making it ideal for low-income drivers.

• How It Works
• How to Get a Lower Down Payment
• Cheapest Car Insurance Companies
• FAQs

A car insurance down payment is also known as a deposit. It’s the amount you need to pay before your coverage is activated, assuming you decide to pay in monthly installments.

Auto insurance companies don't offer “$20 down payment car insurance” as a standalone product. Instead, this refers to the possibility of qualifying for a low initial deposit. Getting a $20 down payment is challenging unless you’re an exceptionally safe driver, but you’ll have a better chance of getting it if you purchase a cheaper policy.If you’re paying in installments, your coverage won’t take effect until you’ve paid your down payment. This amount usually equals your first month’s premium at a minimum.

A down payment isn’t mandatory — it’s only required if you can’t pay your premium in full. If you pay in installments, you can choose to pay semi-annually, quarterly or monthly. In all of these situations, you’ll need to pay a deposit before your coverage takes effect. The down payment is usually as much as your first month’s premium.

There are several ways you can get a low down payment when buying auto insurance. These include voluntarily completing a defensive driving course and maintaining a good credit score. MoneyGeek’s guide walks you through several strategies you can use to get the best deal for you.

There are several ways you can reduce your car insurance costs. These include qualifying for an insurance discount by completing a defensive driving course, increasing your deductible and maintaining good credit.

Typically, your cheapest option is a liability-only policy, which increases your chance to find a low down payment for car insurance. For instance, if you purchase minimum coverage through GEICO, your deposit can be as low as $17. Although full coverage car insurance provides more protection, it may not be a realistic option if your priority is finding a low down payment.

Not all companies offer auto insurance with down payments as low as $20. The cost of car insurance is affected by location and varies between states. However, certain drivers can qualify for a low down payment if everything falls into place.

Below are the car insurance companies that offer cheap coverage. They may give you the highest chance of finding $20 down payment car insurance.

There’s some confusion about $20 down payment car insurance. Here are the most commonly asked questions to provide more information on this topic.