Updated: April 9, 2025
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GEICO offers the most affordable minimum coverage at $534 annually. Travelers is the cheapest for full coverage at $1,105.
State Farm is MoneyGeek's top pick for best car insurance, earning the highest overall rating based on affordability and quality.
Insurers require an upfront payment, typically covering one month of insurance, which isn’t exactly a deposit but a partial payment for your policy.
GEICO offers the cheapest minimum coverage, while Travelers has the lowest full coverage rates. State Farm is MoneyGeek's top pick for best overall car insurance.
Insurance companies require upfront payment because they take on risk when insuring a driver. They won't provide coverage without an initial premium. You have many affordable options that fit your needs. We ranked the cheapest and best choices below to help you find the right policy.
GEICO, State Farm and Progressive are the top options for drivers looking for cheap minimum coverage car insurance with no down payment. The table below compares monthly and annual premiums from the most affordable providers.
| GEICO | $45 | $534 |
| State Farm | $45 | $536 |
| Progressive | $45 | $544 |
| Travelers | $46 | $548 |
| Nationwide | $48 | $575 |
| Farmers | $59 | $708 |
| Allstate | $66 | $791 |
Travelers, Nationwide and GEICO offer the cheapest full coverage car insurance with no down payment. The table shows the average rates from the top insurers.
| Travelers | $92 | $1,105 |
| Nationwide | $93 | $1,111 |
| GEICO | $98 | $1,180 |
| State Farm | $101 | $1,216 |
| Progressive | $107 | $1,282 |
| Allstate | $121 | $1,453 |
| Farmers | $125 | $1,496 |
Car insurance costs vary by location, so the least expensive provider differs from state to state. The table below shows average premiums from each state's most affordable insurer at various coverage levels.
| Alabama | Cincinnati | $19 | $226 |
| Alaska | Allstate | $38 | $458 |
| Arizona | Mercury | $33 | $395 |
| Arkansas | Southern Farm Bureau | $24 | $288 |
| California | CSAA | $11 | $131 |
| Colorado | American National | $24 | $283 |
| Connecticut | GEICO | $36 | $435 |
| Delaware | Travelers | $39 | $464 |
| District of Columbia | Chubb | $31 | $372 |
| Florida | GEICO | $53 | $633 |
| Georgia | COUNTRY Financial | $37 | $440 |
| Hawaii | GEICO | $19 | $223 |
| Idaho | American National | $16 | $187 |
| Illinois | Mercury | $23 | $274 |
| Indiana | Auto-Owners | $20 | $238 |
| Iowa | Progressive | $14 | $166 |
| Kansas | Auto-Owners | $28 | $337 |
| Kentucky | Cincinnati | $25 | $296 |
| Louisiana | Louisiana Farm Bureau | $39 | $471 |
| Maine | Vermont | $23 | $278 |
| Maryland | State Farm | $53 | $642 |
| Massachusetts | State Farm | $18 | $221 |
| Michigan | Westfield | $31 | $369 |
| Minnesota | Westfield | $26 | $316 |
| Mississippi | Mississippi Farm Bureau | $25 | $296 |
| Missouri | Progressive | $36 | $433 |
| Montana | State Farm | $11 | $135 |
| Nebraska | American National | $14 | $163 |
| Nevada | COUNTRY Financial | $38 | $459 |
| New Hampshire | Hanover | $11 | $133 |
| New Jersey | GEICO | $40 | $478 |
| New Mexico | Progressive | $30 | $363 |
| New York | Kemper | $54 | $646 |
| North Carolina | North Carolina Farm Bureau | $22 | $265 |
| North Dakota | Nodak | $19 | $232 |
| Ohio | Nationwide | $19 | $226 |
| Oklahoma | Progressive | $24 | $289 |
| Oregon | COUNTRY Financial | $37 | $443 |
| Pennsylvania | Auto-Owners | $25 | $305 |
| Rhode Island | Amica | $39 | $463 |
| South Carolina | American National | $25 | $297 |
| South Dakota | Farmers Mutual of Nebraska | $15 | $184 |
| Tennessee | Auto-Owners | $21 | $256 |
| Texas | Texas Farm Bureau | $28 | $339 |
| Utah | Farmers Union | $33 | $396 |
| Vermont | State Farm | $18 | $218 |
| Virginia | Virginia Farm Bureau | $26 | $310 |
| Washington | PEMCO | $29 | $349 |
| West Virginia | Westfield | $31 | $371 |
| Wisconsin | AAA | $16 | $194 |
| Wyoming | GEICO | $15 | $176 |
State Farm is the best no-down-payment car insurance company, with the right coverage options, good customer service and financial stability.
State Farm earns strong affordability and claims satisfaction scores, making it a top choice for car insurance with a low down payment. It offers roadside assistance, new car replacement and accident forgiveness. While it lacks some rare coverage options, State Farm's high MoneyGeek score makes it a solid choice for various insurance needs.
The best car insurance company isn't the same for everyone. Insurers consider factors unique to each driver, so two drivers may get different quotes for the same policy. The table below compares top providers to help you find the right no-down-payment insurance.
| State Farm | $101 | $1,216 | 79 |
| Nationwide | $93 | $1,111 | 78 |
| Travelers | $92 | $1,105 | 77 |
| GEICO | $98 | $1,180 | 74 |
| Progressive | $107 | $1,282 | 72 |
| Allstate | $121 | $1,453 | 71 |
| Farmers | $125 | $1,496 | 70 |
To find the best cheap no-down-payment car insurance for your needs, explore the following sections for guidance on choosing the right policy. This will help you balance coverage and cost based on your situation.
Many car insurance companies let you purchase a policy online, making it easier than ever. Below is a simple guide to finding the best cheap car insurance.
Evaluate your needs as a driver to determine the right coverage, which will also impact your insurance rate. How much car insurance you need depends on your state's minimum coverage requirements, your car's value and your financial situation.
The best car insurance companies balance quality and cost. Check available discounts, customer service reviews and average rates. Your best option depends on your driving record and personal situation. Consider how your needs affect the coverage you require.
Insurers have different rates, even for the same driver profile. The best way to find the right option is to compare quotes. Get personalized quotes from at least three auto insurance companies. Also, compare coverage levels and relevant discounts. Review the fine print to avoid any issues or unexpected costs.
Once you choose the best no-down-payment car insurance, make an initial payment to activate your policy. Paying monthly premiums may be a good option if you want the cheapest upfront cost.
Comparing quotes helps you find the best car insurance company and policy. MoneyGeek's calculator provides personalized quotes from multiple providers in minutes. Enter some basic information below to get started.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Apr 14, 2025
| Insurance Carrier | MoneyGeek Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 | 83 /of 100 | $118 | |
| 4 | 83 /of 100 | $129 | |
| 5 | 79 /of 100 | $133 | |
| 6 | 77 /of 100 | $151 |
Get your real quotes from trusted insurance providers.
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Finding no-down-payment car insurance isn't realistic, but you can make the initial payment more manageable. Follow these strategies to minimize your first payment and reduce your overall premiums:
Gather quotes from at least three insurers. Some companies may offer low-down-payment options or seasonal promotions with reduced initial costs.
Consider lowering your coverage limits with minimum coverage insurance or opting for higher deductibles to reduce the initial payment. If your car is over 10 years old, you might be paying too much for full coverage.
Many insurers use credit-based insurance scores to determine payment options and premiums. A higher score can qualify you for better terms, including lower initial payments.
While focusing on the down payment, consider the policy's total annual cost. A lower down payment might result in higher monthly or overall annual costs.
Raising your collision and comprehensive deductibles from $200 to $500 could save you 15% to 30%, and increasing them to $1,000 could save up to 40%. Ensure you set aside enough money to cover the deductible if your car is damaged.
Driving a car that's less expensive to insure can reduce your down payment. Vehicles that are cheaper to repair or have better safety ratings typically have lower insurance costs.
Sports and luxury cars cost more to insure, while SUVs usually cost less. Safety features like adaptive cruise control and lane detection assist can also help lower rates.
A good driving record and solid credit may help you negotiate better terms.
Online comparison tools can help you compare down payments and overall costs, simplifying your decision-making.
If you can pay off the balance quickly to avoid accruing interest, putting your initial premium on a credit card could delay the payment by a month.
Many insurance companies offer discounts or lower premiums to customers who purchase multiple policies. Bundling home and auto policies or insuring all family cars under one policy often qualifies for discounts.
Car insurance is more than just meeting a legal requirement — it protects you financially in case of an accident. Even with a low down payment, the cheapest policy may not provide the necessary coverage. Focus on balancing affordability and protection that fits your budget and long-term needs.
All reputable insurance companies require a first payment to start a policy. This protects them from fraud and high-risk drivers. Here's how it works:
Most companies offer two payment options: a low down payment or a full policy payment upfront. Below is a table comparing these options.
Payment Structure | Total Policy Cost |
|---|---|
Low down payment | If you choose a low down payment plan and your policy costs $720, you'd pay only $60 upfront to get insured and make the same monthly payment for a full year. |
Standard policy paid in full | If you pay in full, the $720 no-deposit policy may cost only $684 with the annual payment discount. You'd make a one-time payment of $684 and save $36, with no monthly payments. |
No car insurance company offers free first-month coverage. All legitimate insurers require upfront payment to activate a policy, typically for the first month. Be cautious of any company that doesn't require an initial payment.
A down payment establishes a clear agreement between you and the insurance company. It shows your financial commitment to maintaining coverage while reducing the insurer's risk. By collecting payment first, the company protects its financial stability by not providing coverage without securing funds.
No-deposit car insurance means you pay only your policy's first month without a separate deposit. Initial payments can be as low as $20. Providers offer various payment plans to spread out costs:
Be cautious of "no-money-down" promotions, as some payment is usually necessary for immediate coverage.
Monthly payments provide flexibility for your budget. However, paying your full premium upfront might qualify you for discounts that monthly payments don't offer. If you can't afford a large down payment, consider using a credit card and paying it off quickly to avoid interest.
Nationwide, State Farm and GEICO offer the lowest rates with no down payment for multiple coverage options. They're among the best for customer service, affordability, various discounts and product options. While they require an initial payment, they offer flexible payment options, with partial payments as low as $20 to start the policy.
Below are the cheapest no-down-payment car insurance providers:
Company | What It Offers |
|---|---|
Nationwide |
|
State Farm |
|
GEICO |
|
No-down-payment car insurance plans can help you secure affordable coverage. State Farm, GEICO and Travelers are the best providers for these plans, offering flexible payment options for drivers seeking coverage while minimizing costs.
Always compare rates before making a decision. Many providers offer discounts, so look for savings opportunities like paperless billing, online document signing and safe driver programs to reduce your premium.
Below, we answer some frequently asked questions about no-down-payment car insurance to help you understand how it works.
All auto insurance companies require some form of payment to start coverage. This down payment is a security to reduce risk and confirm the payment method. However, those seeking the cheapest car insurance can find policies with low upfront costs.
No deposit and no down payment mean the same thing in car insurance. No-deposit payments typically refer to premiums paid monthly. While some insurers advertise no down payment, you'll still usually need to make an upfront payment covering your first month.
If you need auto insurance but can't afford it, look into state-funded programs and low-income insurance options to help you maintain legal coverage.
Policyholders can choose how to make insurance payments. Options typically include monthly, semi-annual or annual payments.
GEICO offers the cheapest no-down-payment car insurance, with minimum coverage averaging $534 annually.
While providers require an upfront payment, you can still find low-down-payment car insurance. Many insurers offer online tools to help you compare rates and request quotes. Some even offer same-day insurance.
Insurers may allow you to pay your premium with a lower upfront cost for a six or 12-month period. However, paying in full for the entire policy term often comes with a small discount, potentially saving you money in the long run.
Pay-as-you-go insurance can benefit infrequent drivers by charging based on actual usage and adjusting rates based on driving habits and risk profile. While this can save money, some policies might lack comprehensive coverage, and poor driving could trigger penalties.
Pay-per-mile coverage works similarly but charges based on mileage, making it cost-effective for those who don't drive much.
Data Depth and Overview
MoneyGeek analyzed 2,474,515 quotes from 607 companies across 3,523 ZIP codes to find the cheapest car insurance for various driver profiles.
Driver Profiles
We created an average driver profile, including:
To analyze rates for specific driver types, we adjusted this profile by location, age, credit score and driving history — adding tickets, DUIs or accidents as needed.
Coverage Definitions
Full coverage includes:
Minimum coverage includes:
How We Ranked Insurers for Affordability
We ranked the best affordable insurance providers using data from AM Best, J.D. Power, the CRASH Network report card, Quadrant Information Services and state insurance departments.
Our scoring system (out of 100) weighted factors as follows:
Learn more about MoneyGeek's auto insurance methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
