Is it possible to get car insurance without paying a deposit?

 

Insurance is a legal binding contract. In order to validate the contract an initial payment needs to pass hands. Car insurance without a deposit has been on the rise since insurance companies started to take payment via direct debit. This has meant insurance companies can now charge monthly for insurance. The initial payment can be as little as 1 month’s insurance premiums.  This has made premium car insurance available to all road users. As customers no longer have to pay deposit the total policy can be spread over a longer period. This has made higher value policies with higher levels of cover available to all.

Quote Zone

Quote Zone has recently been chosen as our comparison partner. There system includes over 90 insurers. The insurance companies compared include MoreThan, Swift Cover, Swinton and Endsleigh. They also include many insurance brokers. These companies have direct relationships with insurers. This gives them access to deals than are generally available direct to the public. By using our quotation service provider you will get access to these deals as well as those provided by the high street insurers. On the final page of the quotation system you’ll find which deals offer monthly deals and those that have no deposit.

 

What kind of cars can be insured?

Often car insurance provided by brokers are cheaper for enthusiast’s vehicles. Performance and modified cars would also fall under the title “enthusiast” as well as classic cars

  • Classic Cars – You can get an insurance policy for virtual any type of vehicle using our quotation partner. If you’re looking for no deposit classic car cover they can provide quotes from specialist insurance brokers… These cars can often be difficult to insure.
  • Performance cars have extreme speed and are involved in more accidents than normal road cars. Add the high ticket price of an accident in these cars means that insurers are often wary of insuring them.
  • Modified cars are the same. Insurers have no way of keeping track of what’s been done. If you’ve supped up your car so it goes 20-30mph over what it did when it left the factory the likelihood of you having an accident also greatly increases. Often people will leave out all the modification they’ve done to their car to get insurance. Consequently insurers may not insure modified cars.

What if I’m from outside the UK?

Those with driving licences from other EU countries qualify for driving in the UK. They can get charged higher premiums however. Our comparison provider caters for many different languages. You can compare car insurance deals in your language to make sure you get the best deal.

No deposit van insurance

Using our quotation partner you can get UK van and commercial vehicle insurance. Over 30 different insurers are included meaning you get the best deal. The speedy click service means you can get your quote in less than 3 minutes. A copy of your quote is emailed to you so as well as being saved on the system. This means you can return at any time to get your quote. The types of commercial vehicle covered include commercial vans, private, courier, catering and ice cream. No deposit insurance is available on all of them.

No deposit car insurance – the specifics

Insurance is a legal binding contract. In order to validate the contract an initial payment needs to pass hands. This idea is old and does not fit in with the current trend of spreading payments. Some insurance companies have got round this by charging the customer an initial payment of 2 months fees. Other no deposit car insurance providers have products branded “pay as you go”. Car insurance prices are currently growing at an exceptional rate according to the AA

A “pay as you go” policy is paid monthly and can be cancelled at any time. These policies have no cancelation fee. Larger insurers charge cancelation fees as they want to keep a customer for longer periods. A pay as you go customer is of no value to a high street brand that has invested millions in advertising. They need to keep each policy live for up to 3 years to return a profit.

Currently a number of providers offer car insurance with no deposit. All offer the customer the opportunity to spread the payments over a year. They can then offer better levels of cover and better policies. They can also charge interest for this service, sometimes up to 25% apr for this service.

Overall a no deposit car insurance policy is advisable for those without the money to pay up front. If you can cover the cost of the whole policy with your first payment, it may be worth doing. By doing this you will avoid the interest charges.

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