Cheapest Auto Insurance With No Deposit in 2025 (Save With These 10 Providers)
USAA, Progressive, and Esurance are the cheapest auto insurance with no deposit starts at just $50. These companies excel in providing affordable policies, coverage options, and excellent customer service, making them standout choices for drivers looking to maximize value without a hefty upfront payment.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed life and health insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chr...
Licensed Insurance Agent
UPDATED: Dec 22, 2024
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Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Dec 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Company Facts
Min. Coverage With No Deposit
A.M. Best Rating
Complaint Level
Pros & Cons
Company Facts
Min. Coverage With No Deposit
A.M. Best Rating
Complaint Level
Pros & Cons
The cheapest auto insurance with no deposit are offered by USAA, Progressive, and Esurance, each providing competitive rates starting as low as $50. USAA stands out for its exceptional value, particularly for military families, ensuring affordability and comprehensive coverage.
Progressive and Esurance also offer extensive policy options and discounts, catering to a wide range of drivers looking for flexible payment terms. These providers not only offer affordability but also reliability and customer satisfaction, making them top choices for consumers.
Not only is no-deposit cheap car insurance a misnomer, but this payment structure can end up costing you hundreds of dollars more long term.
Our Top 10 Company Picks: Cheapest Auto Insurance With No Deposit
Company | Rank | Monthly Rates | Low-Mileage Discount | Best For | Jump to Pros/Cons |
---|---|---|---|---|---|
#1 | $50 | 20% | Military Savings | USAA | |
#2 | $65 | 17% | Online Convenience | Progressive | |
#3 | $65 | 30% | Policy Options | Geico | |
#4 | $70 | 20% | Many Discounts | State Farm | |
#5 | $75 | 17% | Accident Forgiveness | Travelers | |
#6 | $75 | 25% | Usage Discount | Nationwide | |
#7 | $110 | 30% | Customizable Polices | Liberty Mutual | |
#8 | $130 | 22% | Local Agents | Farmers | |
#9 | $120 | 20% | Student Savings | American Family | |
#10 | $120 | 30% | Add-on Coverages | Allstate |
Enter your ZIP code in the free comparison tool above to see quotes from the top auto insurance providers in your area.
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#1 – USAA: Top Overall Pick
Pros
- Low Average Monthly Rate: USAA offers a notably low average monthly rate for good drivers, making it an appealing choice for those seeking affordable auto insurance.
- Military Savings: USAA car insurance review specifically recognized for catering to military members and their families, providing unique benefits and discounts tailored to their needs.
- High A.M. Best Rating: With an A+ A.M. Best rating, USAA demonstrates financial stability and reliability, assuring customers of the company’s ability to fulfill its financial obligations.
Cons
- Limited Availability: USAA membership is limited to military members, veterans, and their families, restricting access to a specific demographic and excluding the general public.
- Not Specified Complaint Level: While mentioned as “low,” the content does not provide specific information about the complaint level for USAA, leaving potential customers without detailed insights into customer satisfaction.
#2 – Progressive: Best for Online Convenience
Pros
- Competitive Rates: In Progressive car insurance review, it is known for offering competitive rates for auto insurance, making it an attractive option for budget-conscious customers.
- Online Convenience: Progressive stands out for its user-friendly online platform, providing customers with the convenience of managing their policies, filing claims, and accessing information online.
- Diverse Discounts: Progressive offers a range of discounts, including multi-policy and low-mileage discounts, providing policyholders with opportunities to further reduce their insurance costs.
Cons
- Limited Coverage Information: The content does not provide specific details about the average monthly rate for good drivers or additional coverage options, making it challenging to assess the complete scope of Progressive’s offerings.
- Not Specified Complaint Level: While mentioned as “low,” the content does not provide specific information about the complaint level for Progressive, leaving potential customers without detailed insights into customer satisfaction.
#3 – Esurance: Best for Policy Options
Pros
- Multi-Policy Discount: Esurance offers a significant multi-policy discount of up to 25%, encouraging customers to bundle multiple insurance policies for added savings.
- Low-Mileage Discount: With a maximum low-mileage discount of up to 30%, in Esurance auto insurance review rewards policyholders for driving fewer miles, potentially resulting in substantial savings on their auto insurance.
- Policy Options: Esurance is recognized for providing a variety of policy options, allowing customers to choose coverage that aligns with their specific needs and preferences.
Cons
- Not Specified Complaint Level: The content does not provide specific information about the complaint level for Esurance, leaving potential customers without detailed insights into customer satisfaction.
- May Require Good Driving Record: The content does not specify the eligibility criteria for discounts, and Esurance may require policyholders to have a good driving record to qualify for the maximum discounts.
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#4 – State Farm: Best for Many Discounts
Pros
- Many Discounts: State Farm is praised for offering numerous discounts, including multi-policy and low-mileage discounts, giving policyholders various opportunities to save on their insurance premiums.
- Long-Standing Reputation: State Farm car insurance review has a longstanding reputation in the insurance industry, providing a sense of stability and trust for customers seeking a reliable insurance provider.
- Maximum Low-Mileage Discount: With a maximum low-mileage discount of up to 20%, State Farm encourages and rewards policyholders for driving fewer miles, potentially reducing their insurance costs.
Cons
- Not Provided Average Monthly Rate: The content does not provide information about the average monthly rate for good drivers with State Farm, making it challenging to compare the cost-effectiveness of their policies.
- Not Specified A.M. Best Rating: The content does not specify State Farm’s A.M. Best rating, an important factor in assessing the financial strength and stability of an insurance company. Customers may lack crucial information for decision-making.
#5 – Travelers: Best for Accident Forgiveness
Pros
- Multi-Policy Discount: Travelers offers a multi-policy discount of up to 13%, providing customers with the opportunity to save on their premiums by bundling different insurance policies.
- Accident Forgiveness: With a maximum accident forgiveness discount of up to 17%, Travelers provides policyholders with a potential reduction in premiums even after an at-fault accident.
- Customizable Coverage: In Travelers car insurance review, it is known for providing customizable coverage options, allowing customers to tailor their policies to better suit their individual needs.
Cons
- Not Specified Low-Mileage Discount: The content does not provide information about the low-mileage discount offered by Travelers, making it challenging to assess the full spectrum of potential savings.
- Not Specified Complaint Level: The content does not provide specific information about the complaint level for Travelers, leaving potential customers without detailed insights into customer satisfaction.
#6 – Nationwide: Best for Usage Discount
Pros
- Maximum Multi-Policy Discount: Nationwide offers a substantial multi-policy discount of up to 20%, providing customers with the opportunity to save on their premiums by bundling different insurance policies.
- Maximum Usage Discount: Nationwide stands out with a usage discount of up to 25%, rewarding policyholders for using their vehicles less frequently and driving fewer miles.
- Local Agents: Nationwide is known for having local agents, offering a personalized touch to customer service and assistance. Check out out comprehensive review “Nationwide General Insurance Company: Customer Ratings & Reviews“
Cons
- Not Specified Low-Mileage Discount: The content does not provide information about the low-mileage discount offered by Nationwide, making it challenging to assess the full spectrum of potential savings.
- Not Specified Complaint Level: The content does not provide specific information about the complaint level for Nationwide, leaving potential customers without detailed insights into customer satisfaction.
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#7 – Liberty Mutual: Best for Customizable Polices
Pros
- Maximum Multi-Policy Discount: Liberty Mutual offers a substantial multi-policy discount of up to 25%, encouraging customers to bundle multiple insurance policies for added savings.
- Maximum Low-Mileage Discount: With a maximum low-mileage discount of up to 30%, Liberty Mutual incentivizes policyholders to drive less, potentially reducing their overall insurance costs.
- Customizable Policies: Liberty Mutual car insurance review recognized for providing customizable policies, allowing customers to tailor their coverage to better align with their specific needs and preferences.
Cons
- Higher Full Coverage Rates: The provided data indicates that Liberty Mutual’s full coverage rates are relatively higher compared to some other companies, potentially making it less competitive in terms of overall cost.
- Not Specified Complaint Level: The content does not provide specific information about the complaint level for Liberty Mutual, leaving potential customers without detailed insights into customer satisfaction.
#8 – Farmers: Best for Local Agents
Pros
- Multi-Policy Discount: Farmers offers a multi-policy discount of up to 20%, allowing customers to save on their premiums by bundling different insurance policies with the company.
- Low-Mileage Discount: With a maximum low-mileage discount of up to 22%, Farmers car insurance review incentivizes policyholders to drive less, potentially leading to lower overall insurance costs.
- Local Agents: Farmers is known for having local agents, providing customers with a personalized and localized approach to insurance services and assistance.
Cons
- Not Specified Complaint Level: The content does not provide specific information about the complaint level for Farmers, leaving potential customers without detailed insights into customer satisfaction.
- Limited Information on Discounts: While some discount percentages are mentioned, the content does not provide a comprehensive list of all discounts offered by Farmers, potentially limiting the visibility of available savings options.
#9 – American Family: Best for Student Savings
Pros
- Multi-Policy Discount: American Family offers a multi-policy discount of up to 20%, allowing customers to save on their premiums by bundling different insurance policies with the company.
- Student Savings: With a maximum student savings discount of up to 20%, American Family auto insurance review provides potential cost savings for student drivers and their families.
- Policy Options: American Family is recognized for providing a variety of policy options, allowing customers to choose coverage that aligns with their specific needs and preferences.
Cons
- Not Specified Complaint Level: The content does not provide specific information about the complaint level for American Family, leaving potential customers without detailed insights into customer satisfaction.
- Limited Information on Discounts: While some discount percentages are mentioned, the content does not provide a comprehensive list of all discounts offered by American Family, potentially limiting the visibility of available savings options.
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#10 – Allstate: Best for Add-On Coverages
Pros
- Maximum Multi-Policy Discount: Allstate offers a significant multi-policy discount of up to 25%, providing policyholders with the opportunity to save on their premiums by bundling different insurance policies.
- Maximum Low-Mileage Discount: With a maximum low-mileage discount of up to 30%, Allstate car insurance review rewards customers for driving fewer miles, potentially leading to substantial savings on their auto insurance.
- Add-On Coverages: Allstate is noted for providing a variety of add-on coverages, allowing customers to customize their policies to better suit their individual needs and preferences.
Cons
- Higher Full Coverage Rates: The provided data indicates that Allstate’s full coverage rates are relatively higher compared to some other companies, potentially making it less competitive in terms of overall cost.
- Not Specified Complaint Level: The content does not provide specific information about the complaint level for Allstate, leaving potential customers without detailed insights into customer satisfaction.
Illustrating the Top 10 Car Insurance Companies That Offers No Deposit
A new wave of flexibility emerges as top companies offer coverage without demanding hefty upfront deposits. Progressive leads the charge with a modest $65 for minimum coverage and an affordable $150 for comprehensive protection. USAA follows closely, catering to the military community with an enticing $50 for basic coverage and a competitive $120 for full protection.
No-Deposit Auto Insurance Monthly Rates by Coverage Level & Provider
Insurance Company | Minimum Coverage | Full Coverage |
---|---|---|
Allstate | $120 | $280 |
American Family | $120 | $280 |
Farmers | $130 | $300 |
Geico | $65 | $150 |
Liberty Mutual | $110 | $240 |
Nationwide | $75 | $190 |
Progressive | $65 | $150 |
State Farm | $70 | $170 |
Travelers | $75 | $170 |
USAA | $50 | $120 |
Other major players like State Farm, Allstate, Liberty Mutual, Nationwide, Farmers, Esurance, Travelers, and American Family join the movement, presenting rates that challenge the traditional norms of deposit-heavy policies. This shift provides drivers with a range of options to choose from, emphasizing affordability and accessibility in the evolving landscape of auto insurance.
However, as drivers explore this no-deposit frontier, it’s essential to consider factors beyond mere rates. The complete evaluation should encompass overall coverage, customer service, and potential hidden fees associated with these plans. In navigating this new paradigm, consumers must carefully compare offerings to find the most suitable and cost-effective option.
Explore Which Cheap Car Insurance Requires no Deposit
So you just got a new set of wheels, and you’re excited to go for a drive. Of course, you need insurance first, but you just spent your savings on a new car. When shopping for a car insurance policy, you may have discovered a few companies that advertise very cheap car insurance with no deposit. Is this type of car insurance policy really all it’s cracked up to be?
Many people struggle to come up with the funds to pay for a car insurance policy upfront. Some impatient drivers are tempted by instant auto insurance, no down payment required, dirt cheap policies. Are these buy now, pay later car insurance policies legit? Will you actually save money with no down payment car insurance when it comes to brass tacks?
The truth is no down payment car insurance doesn’t exist. This title is mostly a marketing strategy for car insurance policies that you can pay monthly instead of annually. It is impossible to start a car insurance policy without paying for the first month. No deposit car insurance policies require some amount of money upfront.
Car insurance policies advertised as no deposit are only allowed in select states. This limited availability can significantly limit your opportunity to take out a no-deposit car insurance policy, depending on your location.
Read more: Best Auto Insurance for a New Car
States that allow no deposit car insurance:
- Arizona
- California
- Florida
- Georgia
- New York
- Oklahoma
- Washington
If your state isn’t listed, don’t fret. Actual no-deposit car insurance might be borderline fictitious and not widely available, but monthly payment options exist for most people.
Read more:
- Cheapest Florida Auto Insurance Providers
- Cheapest California Auto Insurance Providers
- Top Florida Auto Insurance Providers
- Best No Down Payment Auto Insurance
Leading auto insurance companies allow some drivers to pay their car insurance rates monthly instead of the whole year upfront. These policies still require a deposit which can be upwards of 20% of the annual rate. Some auto insurance companies allow you to pay a small deposit, sometimes as low as a $20 down payment.
For an example of the low deposit monthly rates for liability-only insurance for a 30-year-old male driver in New York City with a 2015 Ford Taurus and clean driving record, take a look at these top auto insurance companies:
- Progressive: $160
- Geico: $71
- State Farm: $58
- USAA: $35
If you can take out a car insurance policy with no deposit, you will likely spend more money on your rates. As previously mentioned, no deposit car insurance doesn’t genuinely exist.
Companies redistribute the initial deposit into the monthly payments for car insurance policies advertised as no deposit. Interest and fees are also rolled into the monthly rates, so you end up spending more with this payment structure when it’s all added up.
For example, suppose you get a quote for a car insurance policy across both payment structures. Basic math can help show you the difference in cost. Let’s say a hypothetical auto insurance company offers liability-only car insurance quoted at $1,000 annually. If you want to pay monthly, they require a 20% down deposit equaling $200.
Upon exploring your options further, you discover that they offer a no-deposit payment structure. You are quoted $95 a month for a no-deposit payment plan. In effect, this means the $200 deposit is included in the monthly payments along with interest and fees.
Over the course of your insured year, you will end up spending $140 more than if you had gone with paying the annual rate upfront or the $200 deposit.
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Find out if Can You Get First Month Free for Car Insurance
If you’re struggling with bills but you know you’ll have the funds soon, then you might be wondering why you can’t find car insurance with the first month free. There is a good reason why auto insurance companies do not offer the first month free.
Primarily, you are not insured unless you’ve actually invested money into your policy. If auto insurance companies offer the first month free, some drivers will undoubtedly take advantage of this. (For more information, read our “Are auto insurance companies allowed to charge a policy fee?“).
Sometimes drivers will purchase an auto insurance policy to prove compliance with the government or the lessor of their vehicle. Once they have the paperwork to prove they have insurance, they often stop paying their rates.
This type of behavior is a liability for the insurance company, so they have measures to protect against it. If the insured must cough up a sizable chunk of change to start the policy, they are less likely to abandon it. Even if they do default on their policy, the insurance company has already collected a portion of the rates.
Tips for Finding Dirt Cheap Car Insurance
Car insurance is an expensive but necessary part of life. You may feel disheartened to learn that very cheap car insurance with no deposit doesn’t truly exist. Don’t feel too discouraged, though, because there are other ways to save money on your car insurance rates. Top auto insurance companies offer promotions like the following:
- Safe Driver Discounts: Safe driver discounts rely on black box technology, also known as telematics devices, to monitor your driving behavior. If you are able to prove to the auto insurance company that you are a safe driver, they discount your rates as a reward.
- Good Student Discounts: Good student discounts are a boon for new drivers. Younger drivers can save money on their car insurance rates by performing well in school. This promotion is a great incentive to buckle down and study. The long-term financial rewards can help keep rates low if you stay with the same auto insurance company.
- Bundle and Save Deals: Top car insurance companies offer promotions to save money if you bundle your car insurance with other insurance. Bundle options include, but are not limited to, home, renters, RV, and boat insurance.
As you can see, there are ways you can save money and get dirt cheap car insurance depending on your location and situation. The most critical money-saving tip for any insurance is thoroughly exploring your options. That’s why comparing car insurance quotes can save you hundreds of dollars.
Read more: Best Auto Insurance for New Drivers
You may have recently seen very cheap car insurance with no deposit advertised. Like many insurance shoppers, you may be wondering if it’s too good to be true. The hard truth is that instant car insurance with no deposit doesn’t exist. A monthly payment structure can be more accessible for individuals who cannot afford a larger upfront payment.
Case Studies: Exploring No-Deposit Auto Insurance With Leading Providers
These case studies offer valuable insights into the diverse reasons individuals opt for no-deposit auto insurance with leading providers.
- Case Study #1– Online Convenience vs. Long-Term Savings: Sarah values convenience and chose Progressive for its online system. We’ll track her experience over a year, comparing the ease of online management with traditional upfront payments.
- Case Study #2– Military Savings and Financial Wisdom: Mark, a military service member, opted for USAA for its military savings. His decision reflects financial savvy and long-term budget planning.
- Case Study #3– Customizable Policies and Financial Trade-offs: Olivia selected Liberty Mutual for customizable policies. We’ll explore the trade-offs of no-deposit options and whether they align with her budget and coverage needs.
This offer a comprehensive exploration of the motivations, considerations, and outcomes associated with choosing no-deposit auto insurance from leading providers. To delve deeper, explore our comprehensive guide titled “Compare Insurance Provider Quotes“.
Progressive stands out with competitive rates, online convenience, and diverse discounts, making it a top choice for those seeking comprehensive coverage and financial ease.Dani Best Licensed Insurance Producer
By delving into the experiences of Sarah, Mark, and Olivia, we can glean valuable insights into the evolving landscape of auto insurance and the diverse needs of consumers in today’s market. See which companies have the cheapest minimum auto insurance rates by entering your ZIP code into our free comparison tool below.
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Frequently Asked Questions
What are tips for finding dirt cheap car insurance?
Look for safe driver discounts, good student discounts, and bundle options. Compare quotes from different providers to find the best rates.
Gain further knowledge about bundles by reading our “Top Homeowners and Auto Insurance Bundle“
Is buy now, pay later car insurance the right option?
Buy now, pay later car insurance may be more accessible, but it typically costs more in the long run due to added interest and fees. Consider the long-term costs before choosing this option.
Get the best auto insurance rates possible by entering your ZIP code below into our free comparison tool today.
Can you get the first month free for car insurance?
No, insurance companies don’t offer the first month free to ensure policyholders commit financially and discourage misuse.
Are there states that allow no deposit car insurance?
Yes, some states allow no deposit car insurance: Arizona, California, Florida, Georgia, New York, Oklahoma, and Washington.
Does my credit score affect the deposit amount for car insurance?
The deposit amount for car insurance can be influenced by various factors, including your credit score. Insurance companies may consider your creditworthiness when determining the deposit amount or eligibility for no-deposit options.
Expand your understanding with our “Do auto insurance companies do background checks?”
Which very cheap car insurance requires no deposit?
No car insurance truly requires no deposit. “No deposit” refers to policies allowing monthly payments instead of upfront annual payment.
What should I consider when choosing a car insurance policy with monthly payments?
Check the total cost for the year and look for extra fees. Make sure the coverage meets your needs.
How can I lower my car insurance premiums?
Keep a clean driving record, increase your auto insurance deductible, and use any discounts you qualify for. Compare quotes regularly.
Are there specific car insurance options for high-risk drivers?
Yes, there are insurers that specialize in covering high-risk drivers. These policies might cost more but are necessary for proper coverage.
Can improving my credit score affect my car insurance rates?
Yes, a better credit score can lead to lower rates in most states, as it suggests you’re less likely to file claims.
Avoid expensive auto insurance premiums by entering your ZIP code below to see the cheapest rates for you.
Compare Insurance Providers Rates to Save Up to 75%
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed life and health insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chr...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.