For those who are looking to reduce the amount they pay for car insurance, one of the simplest and best methods is finding a company that does not require a deposit for their services. It is possible to have car insurance with no deposit to pay up front if you are willing to search for the companies that offer this policy and if you qualify.
You will need to know about how monthly premiums work and why so many car insurance companies choose to have a deposit associated with this type of payment.
For example, if the total yearly premium is £520, then you pay 11 installments of £51.60 for eleven months if you have to pay a deposit which adds £47.60. By not paying a deposit, you are saving upwards of 5% to 10% or one month in payments for your car insurance. It’s little wonder that so many people will actually shop around to find the lowest payments possible.
There are plenty of reasons to choose to pay for car insurance without deposit. However, it is also true that most insurance companies which offer such an option want the entire payment up front. So, instead of paying a small monthly fee you are paying for the entire year of your car insurance in one payment. However, many people do not have the available cash to make such a payment.
Still, it is possible to get no upfront payment car insurance and still make monthly payments while saving up to 20% over those who have to leave a deposit. However, you will have to qualify for such a program which is depending on your circumstances may or may not be difficult.
A good example is taking out a policy that costs you £644 per year. With a deposit, you might have to pay as much as £128.80 as your first installment. This is more than double the standard £51 for the remaining monthly premium payments. By saving well over a month’s premium by going with no deposit, you can save yourself a considerable amount of money.
There are different standards used by different companies when it comes to qualifying for this policy. If you pay all of your insurance for the year up front, then virtually anyone will qualify simply because all of the insurance is paid. However, for those who want to pay their insurance by the month here are a few of the standards.
Naturally, having an excellent driving record will help secure car insurance with no upfront deposit. This is because drivers who have established their record over the years in being safe will naturally be more attractive to insurance companies. As a result, they are more likely to offer a no deposit plan to attract such drivers.
To have a good to excellent credit score is also very helpful since it establishes to the insurance company that you pay your bills on time. This is a very important consideration and while a perfect credit score is not required, having a good one will certainly help.
If you have a strong history of paying your insurance on time with a particular company, that helps as well. In fact, many drivers who start off with a policy that requires a deposit will often not have to pay one after a period of time that is established by the company. Finally, if you are a driver in the lowest risk category this will help in securing low cost insurance.
In addition to choosing car insurance no upfront deposit plan, there are a number of simple strategies that will help you save even more money.
Choose Cheaper Insurance: If there is no lien against the vehicle, then you can choose to pay for just liability and uninsured motorist which is far cheaper than paying for comprehensive insurance.
Higher Deductable: You will need more money in your bank account if you have an accident, but it will save money on your car insurance payments.
Drive a Safer Vehicle: One of the easiest ways to save is by driving a vehicle that offers a lower rate. This means avoiding high powered sports cars and expensive models that cost a considerable amount to repair even for minor damage.
Bundle Insurance: By using one company to cover your auto, home, boat, and other insurance needs, you can save a considerable amount of money.
Other methods include taking an approved driving safety course and limiting the distance that you drive per week. Those who drive under a pre-selected amount are far less likely to get involved in an accident which will save you money. The more you can save, the lower your premiums will be and the more likely you can gain no deposit options by maintaining a safe driving record.
Actually, quite a few companies in the UK offer a no deposit plan. The trick is to simply find it in their policies. Sometimes they will advertise while others will hide it as part of their services. This is more along the lines of what marketing efforts are being made by the companies in question.
Therefore, car insurance with no upfront payment company that advertises that policy heavily is not necessarily going to be cheaper than another insurance company that may bury such a service in the plans that they offer. You will need to check out what they offer and do a full comparison so that you can get the best deal possible.
Currently, there are more than a hundred car insurance companies and many of them do not require a deposit for qualified applicants. You will need to find the car insurance with no deposit to pay up front companies and choose from them the best deal that you can find. We can help you get free quotes online and find out the best deal available.