Benefits of No Deposit Auto Insurance Plans

Advertisement

You are probably well aware of the multitude of reasons that insurance companies blame the expensive price of car insurance; fraud, compensation culture, ash clouds, the wrong type of snow on the points. You name it and I guarantee that some insurance executive, somewhere, claims it is the reason why premiums have skyrocketed over the last couple of years.

All this is irrelevant because the only fact that matters is that we all have no choice whatsoever in whether or not we buy car insurance. The chances of getting away with driving without it are slim and getting slimmer with horrendous penalties. So, the choice is to either pay up r start walking again. Insurers are well aware that car insurance is now a very major expense for the vast majority of motorists, so a lot of them are making it as easy as they can for you to buy it, even if you do have to pay a premium equal to the GDP of Iceland.

Many people find themselves in the position of needing auto insurance but not having the deposit that the insurance company requires available.  The good news is that there are now ways to get auto insurance without making large payments upfront.  There has been so much competition among the various auto insurance companies that they have started to make getting insurance easier to attract more clients. One of the biggest benefits to customers has been the ability to get low or no deposit car insurance

Buying Insurance with Monthly Payments

After centuries of demanding insurance premiums at least a year in advance, and then investing those premiums in stocks, shares, and other (hopefully) profitable ventures insurance companies are now far more open to the idea of allowing people to buy insurance with monthly payments. This is not because they feel particularly charitable, it is because if they do not do so their competitors will take the business away instead. This means that you can get now and pay later auto insurance with payments spread out throughout the year, and with no thumping great deposit to find at the beginning.

To make things more interesting, there are now a number of price comparison websites that will allow you to not only compare the total cost of policies from a large number of competing insurance companies and brokers, but they will also let you see what the monthly repayments will be as well. Since the initial payment (which can often be as little as 1/12th of the total premium, and sometimes even lower) can be paid by credit card, you don’t even have to find this sum yourself until the car payment becomes due, so you should be able to buy your insurance right away, even if, like the rest of us, you are completely broke.

No Deposit Car Insurance, a Great Idea

No deposit car insurance is a great idea for people who simply do not have a large amount of money at one time.  Many people find it much easier to pay in monthly installments than to come up with a large sum.  Many students are particularly on tight budgets and find the ability to make small monthly payments very helpful.

Advertisement

This type of car insurance has become so popular that you can find a variety of different auto insurance companies that offer car insurance with no money down. Insurance companies are hoping to attract new customers by giving them the ability to pay for their policy in small monthly increments.  Keep in mind that your insurance rates are based in part on your experience.  If you have a lot of accidents or make a lot of claims your rates will rise, no matter what payment system you have arranged with your insurance company.

Comparing Different Policies

Do please bear in mind that when you compare different policies the cheapest one is not always the best; in fact, sometimes a fully comprehensive policy can actually cost less than a third-party fire and theft policy from the same company, whilst offering much better benefits! The moral is, check out each quotation carefully and read the policy details so that you are fully aware of just what you are paying for.

Most insurance companies were requiring large deposits as part of signing the contract. With no deposit car insurance, your total premium is divided among 12 months and you make monthly payments. This means that you will not need to come up with a large amount of money upfront but simply pay your regular monthly bill.

When Looking for no Deposit Car Insurance Watch out for Scams 

There are some companies that will charge you large fees or have disclaimers that limit your coverage when you get this type of policy.

Advertisement
Share on:

Leave a Comment