Young drivers in the UK face very high premiums when they first start driving as they are considered the highest risk group for vehicular accidents. It’s little wonder that so many young drivers look for any discount they can find for their insurance.
One of the more interesting ways to save money is low deposit car insurance for young drivers. By removing or greatly reducing the deposit, drivers can save a considerable amount of money over time.
Car insurance that is paid on a monthly basis generally requires a deposit to secure the insurance. A typical deposit can be up to 20% of the value of the entire policy. This can be difficult for young drivers to pay initially which may rob them of the opportunity to proceed with a monthly payment plan. To remove the deposit means that the policy is divided up into 12 equal payments over the course of a year.
Qualifying for car insurance with no deposit to pay upfront does offer many benefits that will be helpful when it comes to managing your budget.
Getting no deposit auto insurance is not for everyone as you will have to qualify in most cases in order to receive the benefit. There is one notable exception that every driver will quality to have their deposit removed if they pay for the entire policy in one payment. Because the insurance is fully paid, no deposit is required.
Barring that, you’ll generally need a good credit rating and a history of paying your insurance on time. Insurance companies use deposits to cover potential losses due to non-payment. However, if you already have built up a good reputation in terms of paying your bills it can help reduce the deposit that is needed.
Apply for Free Quotes: The best way to pay less is by finding the companies that offer reduced or zero deposits for their insurance. You will need to have the information about you and your vehicle ready because that will be required when applying.
Compare Quotes from Different Companies: You will need to shop around and be smart when it comes to finding the lowest rates. Remember to look for other discounts that you may qualify for so that you can pay even less. We are providing free instant quotes for you to compare and save you on premium.
Search for No Deposit Qualifiers: You may find that that some companies have qualifiers that allow for a reduced deposit. If you can meet these qualifiers, then you can lower your monthly insurance payments. While it may take time, you can start with the lowest deposit insurance that you can find and once you meet the qualifiers start getting the deductions at that point.
Car insurance for teenagers can be expensive, particularly with a deposit is added to the total amount. However, by reducing the deposit you can take the first step towards paying less while still getting the coverage that you need.