How To Get Very Cheap Car Insurance With No Deposit (Easy Guide)
Insurance Tips

How To Get Very Cheap Car Insurance With No Deposit (Easy Guide)

It is always better to get very cheap insurance with no deposit to save money, but finding cheap car insurance can be challenging.

This can be a heavy strain if you’re on a tight budget or have little money to put down upfront. 

However, there are ways to get cheap car insurance without a large deposit. 

This easy guide will explain how it’s possible and provide tips to save you money.

How To Get Very Cheap Car Insurance With No Deposit

Get maximum yet affordable protection with these tips on how to get cheap car insurance with no deposit: 

1. Research Companies and Policies Thoroughly

The first step is to spend time researching different insurance companies and the policies they offer. 

Some insurers specialize in high-risk drivers or provide discounts to certain groups like students or seniors. 

Look into the financial strength of companies you’re considering to ensure they have the resources to pay claims.

Read the fine print to understand coverage levels, exclusions, deductibles, and hidden fees. 

Don’t just look at the sticker price dig into what’s included for that rate. Getting quotes from at least three insurers will give you an idea of your options.

2. Compare Quotes and Ask About Discounts

Once you’ve identified some potential providers, get quotes from each one. Provide the same information to all of them to accurately compare rates. 

Don’t hesitate to negotiate with companies and ask them what discounts might be available. 

Some common ones include:

  • Good driver discount: For a clean driving record with no accidents or tickets.
  • Good student discount: If you or your child gets high grades, usually a B average or above.
  • Low mileage discount: Driving fewer than a set number of miles per year.
  • Multi-policy discount: For bundling auto with home/renters insurance.
  • Defensive driver discount: For completing an approved safe driving course.

The more discounts you can qualify for, the lower your overall premium will be.

3. Raise Your Deductible

Choosing a higher deductible means you pay more out-of-pocket if you have a claim, but it lowers the monthly premium significantly. 

This can be a great way to reduce costs if you have some savings set aside in case you need to pay the deductible. 

Make sure you can afford the larger upfront amount if an accident occurs.

4. Limit Your Coverage

Eliminating unnecessary coverage types can also save money. For example, you may be able to remove comprehensive and collision coverage on an older car that is not worth much. 

Or opt out of rental reimbursement if you have another vehicle or can use public transportation. 

Just be cautious about reducing liability limits or other critical protections.

5. Use Telematics

Insurers are increasingly offering telematics programs, which use a device in your car or a smartphone app to monitor driving habits. 

Safe drivers can earn big discounts for low mileage, avoiding late-night trips, and no hard braking. But you give up privacy and some control by participating.

6. Choose a Higher Risk Insurer

A few insurance companies are catering specifically to higher-risk drivers who may have accidents, DUIs, or other violations on record. 

These specialists are more likely to provide affordable quotes without requiring large down payments. 

Just know the trade-off may include slightly less comprehensive coverage.

7. Pay Annually or in Installments

Instead of paying monthly, see if you get a discount for paying 6 months or a full year upfront. 

Auto-debiting from your bank account can save on installment fees versus mailing in monthly payments. 

Just be sure you have the funds available when those automatic deductions hit.

6. Maintain Good Credit

Many insurers use your credit-based insurance score as a factor when setting rates. 

So maintaining good credit and keeping accounts current can lower your premiums over time. 

Pay all bills on time and correct errors on your credit report for the best scores.

7. Shop Around Annually

Don’t just renew the same policy year after year. Rates fluctuate, and discounts may change over time. 

So make it a habit to requote coverage around the same time each year. You may find a much better deal from a new company offering you lower pricing.

8. Ask About Low Down Payment Plans

If you’re struggling to pay a large lump-sum deposit, inquire about “minimum down payment” options with insurers. 

Plans available only require several hundred dollars down, followed by smaller installment payments. 

You’ll pay more in the long run with financing charges but can get covered for very little upfront.

9. Seek Out Community Programs

Some nonprofit groups and associations have negotiated with insurers to offer low-cost coverage, often with inexpensive down payments. 

Check with entities like your alumni organization, employer, church, credit union, or other community groups you’re a member of.

10. Bundle with a Family Member’s Policy

See if a parent, spouse, or domestic partner can add you as a driver on their policy. Most carriers provide discounts for adding multiple vehicles and drivers to the same policy. 

Rates often go down for each additional person. But make sure their driving record and profile won’t raise rates before linking policies.

Tips for Saving Money After Getting Insured

Getting very cheap car insurance won’t help much if your rates skyrocket after getting covered. 

Here are some tips for keeping costs low after signing up for a policy.

1. Drive Safely

Avoid accidents, traffic violations, and claims if at all possible. Drivers with clean records save significantly on insurance versus those with moving violations and at-fault accidents. One ticket can raise your premium by 15-30% overall.

2. Maintain Good Credit

Keep paying all your bills on time after becoming an insured driver. With continuous insurance, companies will monitor your credit-based score and lower rates if your rating improves.

3. Take Advantage of Discounts

Sign up for any new discounts that come available from your insurer. Consider retaking a defensive driving course before renewal time to maintain that discount. 

And notify them if you become eligible for a good student discount.

4. Increase Deductibles Over Time

As you get older and presumably earn more income, consider raising deductibles closer to renewal. 

The higher amounts can provide big savings to offset the increased financial risk.

5. Reduce Unnecessary Coverage

Eliminate extras you may not need anymore, like rental car reimbursement or roadside assistance if you have AAA. 

And opt for lower limits on older vehicles, not worth comprehensive collision coverage.

6. Shop Around Annually

Make it a habit to get fresh quotes each year before renewal. You may find one of the many new insurers offers you a much better rate thanks to improved risk models and discounts.

7. Maintain Low Mileage

Keep annual mileage low and let your insurer know if it drops significantly. Most will adjust rates downward when you drive fewer miles and spend less time on the road.

8. Ask About Loyalty Discounts

Some carriers offer special pricing for long-tenured customers. See if your loyalty can be rewarded with reduced rates at renewal. But still compare other options in case you find an even better deal.

9. Seek Higher Deductibles

Consider increasing deductibles by $250 or $500 closer to renewal time. Doing so can potentially provide nice savings, significantly if your finances have improved.

Final Tips for Getting the Cheapest Car Insurance

Finding cheap car insurance coverage with no deposit takes effort, but it can be done. Here are a few final tips to minimize what you pay:

  • Compare quotes from at least 5-6 different insurance companies. Rates can vary wildly.
  • Ask insurers about ways to reduce down payments. Some will spread it over 3-6 months interest-free.
  • See if any family, alumni or employer groups offer discounted coverage options.
  • Maintain a clean driving record. Just one speeding ticket or accident can raise rates significantly.
  • Pay your insurance premiums on time every month. Payment lapses can result in non-renewal or placement in high-risk pools.
  • Consider a slightly higher liability limit if it makes sense. Lower premiums from dropping this coverage may not justify the risk.
  • Bundle insurance products and keep all policies with the same provider for multi-policy discounts.
  • Always provide the same information when requesting quotes. Differences can alter rates between providers.


With some persistence and smart shopping, you can find cheap car insurance with little money down. 

Make sure you understand exactly what’s included and excluded before signing up. 

Pay attention to the details and ask questions anytime something is unclear. If you put in the effort upfront, getting covered for much less than you might think is possible.