Getting Cheap Car Insurance Quotes With No Deposit

Getting cheap car insurance quotes with no deposit takes a little time and research, but it’s easier than you think! Read our guide and enter your ZIP code below to start comparing quotes from multiple local companies. Make sure you are searching for no-deposit auto insurance plans so you don’t get quoted for plans you don’t need.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Oct 30, 2020

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There is nothing more frustrating than comparing car insurance quotes, finding the perfect policy that fits your budget, and discovering that you must pay a large down payment before the policy will take effect.

The low monthly rates that fit your budget will only fit your budget because the company requires you to pay 30 or even 40 percent of the premiums upfront to bind the coverage.

For consumers who are on a fixed budget, buying a policy that requires a deposit is not practical.

Putting down a large down payment is not a requirement if you take the time to do your homework. While it was once an industry-wide requirement for companies to require a deposit or even the entire 6 month term premium upfront, this requirement has started to disappear in the more modern marketplace.

Some agencies and brokerages still have a deposit requirement that is set for all policyholders to purchase coverage and others have no such requirement.

As a consumer who is smart and resourceful, it is important to learn how you can find no deposit car insurance quotes without having to sift through all of the options individually.

Because there are a long list of reputable companies that want to appeal to the 210 million drivers that own vehicles across the nation, there are several carriers that have flexible payment options that do not require the large upfront payment. Here is your guide to finding the cheapest car insurance quotes from no deposit car insurance companies.

Use our FREE car insurance comparison tool above to find quotes instantly! Simply enter your ZIP code to get started.

What are your payment options?

Not all companies are dedicated to offering their clients the flexibility that they need. While this is true in any industry, in the car insurance industry, where coverage is both required and essential, flexibility has never been more important.

Some individuals may be able to afford to pay their entire premiums at once, but a majority of consumers prefer to split up the expense into quarterly or monthly payments.

Most companies accept the same forms of payment, but the payment options that are available to you depend upon the company that you do business with.

There are several different payment schedules available, and the ideal schedule is one that you can easily maintain your coverage without forgetting to make your payment.

Here are some of the options and what makes these options best:


If you do not have large sums of money to pay for your insurance premiums, paying a small payment every month of your term could be a great option.

Monthly payments allow you to divide the balance into smaller amounts, but you will need to add a billing fee that could be a percentage of your bill or a fixed amount. It is crucial that you remember your due date and that you pay on time so that you always have coverage.


If you want to reduce the likelihood of forgetting a payment but you would like to go 3 months without making a payment, you could pay quarterly.

This is a good option if you want to reduce the monthly bill surcharges but you cannot pay semi-annually or annually.

Semi-Annual and Annual

Some companies offer 6 month terms and others offer 12 month terms. A 12 month term has rates that are locked in for the entire year and a 6 month term has rates that could change earlier. Many people choose 12 month terms because they are not likely to fall victim to rate increases as much as they would if they held a semi-annual term.

No matter which option you choose, you will have a choice to pay your premiums in full.

If you are looking for no deposit policies, you probably do no want to pay premiums all at once.

In the future, if it is an option to pay your premiums for the entire term, it is nice to know that you could receive a “pay in full discount” or eliminate the monthly or quarterly fees that you will be charged.

It is not always practical, but you can pay less overall and get peace of mind if you find a way to pay the lump sum.

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What are the pros and cons of cheap no deposit car insurance?

Now that you know the payment intervals that you can choose from, it is time to learn about the benefits and drawbacks of the more modern no deposit car insurance plans.

Remember, just like a pay in full plan is not for everyone, no deposit plans are not for everyone either. Consider both sides and you decide for yourself.

Benefits of No Deposit Insurance For Cheap

One of the biggest benefits of a cheap car insurance policy that requires no initial deposit is that your initial payments to get insurance will be more manageable.

If you just recently purchased a vehicle, you have already paid a great deal of money out-of-pocket to purchase or finance the car.

If you already own a car and carry insurance, the idea of switching carriers to find overall lower premiums may not be possible because of the large deposit required to make the switch.

You will be able to afford to pay for the insurance that you need and are required to carry by choosing a company with flexible options.

You can either choose a dirt cheap plan with bare minimum coverage limits, or you can choose higher limits and still divide the payment up into smaller amounts throughout the term.

No deposit insurance makes the cost to buy insurance predictable.

If you have been quoted $70 for an insurance policy in your state, you will only be required to pay that $70 to start the plan on the effective date that you choose.

For a plan that requires a deposit, that $70 payment could mean a $140 or even $210 first month payment. A no deposit plan is a lot less confusing and a lot more predictable.

Adding the fact that you can have premiums drafting directly from your bank account and you can see how predictable and convenient monthly payments can be.

Drawbacks of No Deposit Car Insurance for Cheap

Where there are benefits there will also be drawbacks that need to be considered. The biggest drawback is that cheap is not always a good thing. While it is not always true, you get what you pay for in some senses.

If you choose a subpar company that offers very little services and minimal coverage, you may find cheap insurance, but the limited protection could put you at-risk when you need the protection the most.

If you do not take the time to choose a quality insurer that you know is financially stable and that has a good product offering, buying a cheap no insurance policy could be an issue.

Another drawback is that the initial deposit will not bring the future payments down, so the monthly payments will be higher than they would if you bought a plan that required a deposit.

If you do not have a bank account, it may not even be an option to buy a no deposit plan. This is because many of the companies that offer plans that do not require a deposit will require the applicant to submit their bank information for automatic drafts.

This helps the company avoid the risk of a person applying for coverage just to get an auto ID card and then letting their policy cancel very shortly after.

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Sources to Help You Find No Deposit Auto Insurance

If you decide that no deposit insurance is best for you, you might be wondering how you can find the companies that do not require a deposit.

There is not a state-by-state list that you can refer to, but there are valuable tools online that can be accessed for free that will make your search much easier.

Instead of visiting dozens of sites to go through quote forms and to find that the company wants a deposit, you can use an online rate comparison tool that can help you filter out the companies that will ask you for more than your monthly payment upfront.

These online platforms help you compare the costs for coverage with a single company and will make price shopping easy by laying out the payment schedule in a way that you can understand.

There are several ways to save money on insurance, but the most effective way to get a great deal on car insurance is to comparison shop. If you are looking to get coverage immediately so that you can comply with state laws, finding a no deposit plan could be a must.

Use our FREE quote comparison tool located below to start your search for car insurance instantly!

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