No Deposit Car Insurance

Finding No Deposit Car Insurance in UK is Easy and AffordableNo deposit car insurance is the most practical means of saving on your vehicle’s cost without compromising quality or protection. While competition among low deposit car insurance companies in the UK has driven down the costs, a no deposit auto insurance makes more financial sense. Before you go and buy one however, understanding how it works will be necessary.

How Does the No Deposit Policy Work?

No deposit car insurance policies can vary somewhat among companies, but the basic principle is the same: you don’t have to pay any lump sum which typical insurance companies demand. Under these conditions, the insurance takes effect immediately and you get the benefits the company has to offer. Depending on the company and the type of policy you seek, you might get a monthly premium payment plan approval in monthly installments. Before signing up for an agreement, read the fine print and make certain you understand what it is about. There are a lot of insurance companies so you don’t have to hurry.

Who is This Policy For?

Car insurance without deposit is for anyone who doesn’t want to pay a huge price upfront. While auto insurance is a necessity, the cost is often too high for most drivers, so the no deposit scheme is a good option. Generally speaking the process for application and approval isn’t that different from regular car insurance so it shouldn’t be too difficult.

Where to Find No Deposit Car Insurance UK?

To Find Low Deposit on Car Insurance Get Free Quotes OnlineThe best place to find these insurance policies is the Internet. While these companies will provide the same no deposit provision, the rest of the policy will vary as will the cost. Rather than spend hours clicking and checking the cost, you can simply get a free auto insurance here that should speed up your research.

Aside from the cost you need to consider your insurance cover needs as well. While it’s nice to save on the deposit payment, it must not come at the cost of necessary cover for your car. The requirements vary per car owner of course so it’s something only you can decide.

What are the Requirements?

No deposit and car insurance with low deposit policies have the same requirements as regular auto insurance, and the following should give you an idea of the process. Again this is only meant to give you an idea only, and you must still get in touch with the insurance company for the full list of requirements.

Application Filing: filing for a car insurance with no deposit means you’ll be required to submit information about yourself and car.

  1. Type of vehicle: The more expensive your car is, the costlier it will be to insure overall, whether it’s regular, low or no deposit.
  2. Age: In the UK as in the US, younger drivers usually have to pay more as statistics show they’re more likely to file a claim.
  3. Occupation: some jobs like journalism could raise the cost.
  4. Vehicle usage: Your mileage determines in part the overall cost of insurance, as well as when you travel.
  5. Driving history: A very important factor that is taken into account by the insurance company.
  6. Where you live: If you live in an area where theft is very common, you will possibly pay higher.
  7. Voluntary excess: Voluntary excess refers to the amount you’re willing to pay out of your own pocket. The higher the excess the lower the insurance cost will be.

Once you have obtained car insurance without deposit, the insurance company should provide you with a certificate of insurance or a temperate certificate (or a cover note). A cover note offers the same level of protection as regular car insurance but for a limited time only. You should also receive a policy or schedule document that explains the terms and conditions of the policy.

The insurance policy should also give you a policy booklet detailing what the policy covers and who you should contact if there’s a problem. Depending on the insurance company you may be furnished other documents. Keep in mind that many insurance companies today provide the information online, so keep a backup or print the documents, and keep copies in your car just in case.

Tips for Saving Money on No Deposit Auto Insurance:

Tips to Save on Car Insurance in UK with No DepositNo deposit car insurance pay monthly rates vary, so you have to take a look around first and make sure you’re getting your money’s worth. While the no deposit feature is important, don’t forget to look at the rest of the policy. Here are some other suggestions.

  • Adding drivers: Add only regular drivers in your insurance policy. You can always add another driver later on.
  • Take care of that no claims bonus: This could increase the premium cost by a few pounds, but later on it is going to pay off as you’ll be able to save money. Keep in mind that the definition of a no claims bonus is going to vary per company so read the fine print or ask around.
  • Opt for a higher excess: Cheap car insurance quotes no deposit becomes even cheaper if you sign up for a higher excess. As was pointed out earlier, this will reduce the cost of your premium as you will be shouldering part of the cost in case of an accident. That being said, don’t set the excess level too high especially if you’re driving a low value car.
  • Secure your vehicle: this is something long time drivers are aware of and something new drivers need to realise quickly. Securing your car with an alarm or tracking device is going to get you a discount of as high as 5%. The newer cars have enhanced security features so that’s to your advantage.

A clean record is going to help reduce the cost, but so will driving less. The fewer miles you drive the more you’ll save on the insurance. For instance, an annual mileage reduction of 5,000 miles (8,000 km) can save you £50 off the cost. If you reduce this to 16,000 km or 10,000 miles, the savings will reach £100 or more. However you need to be honest when providing information about the mileage because it will be checked.


The primary benefit of affordable no deposit car insurance is you don’t have to pay a lot of money for the deposit. If you’re trying to save money, this can make all the difference. Second, insurance provides you with protection in case there’s an accident. Even if you’re a careful driver, you can never tell when an accident will occur so it’s best to get cover.

Another advantage of auto insurance is there are now more options than ever, and since they’re on the Internet it’s easy to compare the cost and features.

Another advantage offered by no deposit auto insurance firms is they’re usually flexible when it comes to the price. The policies offered vary as well; a lot of car owners opt to pay in monthly installments since the interest rate has gone down, but another option is to borrow the amount with a 0% credit card and pay everything off in 12 months.


Low deposit car insurance has several benefits, and the only real disadvantage is there are so many options that it could overwhelm you the first time out. The other thing you have to do is research carefully and thoroughly because there are different types of insurance coverage, and you have to find the one that suits your needs.


Since June 2011, all vehicles that have been registered in the UK must be continuously insured. The only exception to this is if the owner sends a Statutory Off Road Notification (SORN) to the Driver and Vehicle Licensing Association (DVLA) stating the vehicle is never going on the road. If you’ve got a vehicle you’re not using on public highways, you have to fill the SORN and notify the DVLA. Any time you’re using the car, it must be insured. Failure to comply with this rule could result in a fine up to £1,000, and depending on the nature of your case, your car could be impounded or destroyed.

The European Court of Justice (ECJ) Gender Directive

There are still some car insurance companies in different parts of the world that use gender as a basis to determine the premium, but in 2011, the European Court of Justice issued a ruling that effective December 21, 2012 onward, gender can no longer be used to set premiums.

Consumer Insurance (Disclosure and Representations) Act

This Act obtained Royal Assent in 2012 and took effect in 2013, and what this does is make it harder for car insurance companies to refuse payouts when the policyholder is unable to present the required facts. Under its provisions, auto insurance companies are required to make their questionnaires and policies easier for customers to understand.


No deposit car insurance is quickly becoming a popular alternative in the UK and Ireland among drivers who want to save money upfront without giving up on service and features. A quick look online will tell you the number of companies offering this service has gone up as well.