Many people might wonder as to how car insurance with no deposit works. Normally, companies, which provide insurance covers for cars, require buyers to pay some amount of money as a deposit for activating the coverage being offered. But every buyer may not have enough cash at his disposal for paying a lump sum amount upfront for getting his vehicle insured. To cater to the needs of such types of drivers and to survive in increasing market competition, some insurers have devised alternative ways to stay ahead of their competitors. Consequently, auto insurance policies without the need for any kind of deposit came into existence and are now being made available to those drivers who are unable to afford upfront payments for deposits. But if you are thinking of getting a no deposit auto insurance policy, you must first know how it works.