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Some drivers may be looking for very cheap car insurance with no deposit required, but you should expect to put some amount down in most cases. When buying car insurance, the money you put down is what binds the policy, which puts your coverage in force (or activates your coverage). However, the money you pay upfront technically is not a down payment. Instead, it is your first premium payment, or installment. You could also pay monthly rather than in one lump sum for the entire policy period if you prefer to make small payments throughout the year. What companies offer cheap car insurance with no deposit? Searching specifically for very cheap car insurance with no deposit would likely not yield many credible options, as you have to pay something towards the policy to activate the coverage in many cases. However, there are several options for affordable, no- or low-down payment coverage. For example, you may be able to get cheap minimum coverage auto insurance from insurers such as Auto-Owners, Geico and Amica based on the average premiums of the carriers we reviewed. When insurers offer a no down payment option, you save on one month of paying your premium and instead pay the remaining months of your policy at a higher rate until your renewal. What many drivers seeking cheap no down payment car insurance may actually be looking for is cheaper coverage overall. Looking into cheap insurers could be an effective way to have your premium cause less impact to your budget. Read more