No Deposit Car Insurance!

We all know how expensive it can be when it comes time to renew our car insurance policies. In the UK the high cost of insuring your car means that as many as 1 in 10 drivers on the road are driving uninsured. Willing to take the risk of being caught rather than have to pay a premium that many people cannot afford.

Car insurance does not have to be an expense that you have to find all the money for all at once. Particularly if you are living on a tight budget or you are currently paying higher than average premiums because you are under 25 or because you are a new car driver.

A great for you to be able to afford and to budget for your car insurance costs is to take out a no deposit car insurance policy. This is a pay as you go type of insurance where you pay for your insurance premiums in equal monthly payments rather than having to pay all the money up front.

No deposit insurance where you can pay money is not something new in the UK. In fact many insurers have offered a facility for quite a while where you can choose to pay monthly rather than all up front. Usually though there is an additional cost for this type of service as the insurance company are providing you with a credit service. As they are offering credit it can mean that if you have a less than stellar credit rating they may not offer the service to you.

Many companies do require you to pay a larger than usual first month premium, this can be as much as 2 months worth of premiums in cost. You may also be expected to pay an admin fee due to the extra administration due to the management needed for the monthly payments. In addition you can also expect to be charged interest as the insurance company will often outsource the credit arrangement to a third party finance company who will charge interest for this facility.

A newer pay as you go scheme however does offer a true month by month car insurance facility. You pay a month at a time with no minimum or maximum amount of months that you are expected to remain using the policy. There is no deposit or additional charges on top of your premiums and you can cancel at any time. You can expect this new type of car insurance to become more popular as the cost if car insurance increases.

Who to Use for Cheap Car Insurance Quotes

You might be content with your car insurance. But are you receiving the most comprehensive coverage at the best price? Your friends and family might be paying a lot less with their insurance coverage, even if you’re driving a similar type and class of vehicle. This is because insurance providers take into account multiple factors when accessing the risk and putting forward a quotation. It is possible to avoid paying over the odds but taking the time to search online for a cheap car insurance premium that works best for your individual requirements and lifestyle.

If your car insurance is coming up for renewal you can shop for alternative quotes either by going direct to one of the mainstream insurance companies, using an insurance agent or broker, or to simplify the process, using a price comparison site.

If obtaining a quotation direct from an insurer provider, you won’t be told if similar coverage is on offer elsewhere for a more competitive premium – you would just be limiting yourself to receiving a quotation from one particular company. Coverage options might also be restrictive to what else might be available on the market; an insurer is likely to be reluctant to point out any shortcomings that might appear on the policy. A lot of motorists presume it is easier and cheaper to just obtain a quotation from a well-known insurer as this takes out the middleman. But this is rarely true, it is always a wise step to comparison shop multiple quotes to make sure you negotiate the cheapest car insurance quote available.

An insurance agent or broker is able to search the market for multiple policies, so you ought to receive an attractive rate going this route. However, as a lot of the brokers are tied to a select few insurance underwriters, the search for insurance coverage might not be overly wide. Some brokers might be limited to placing their business with just one or two different insurance providers. Of course, the expertise that’s offered by a broker will be invaluable to some; even so, if wishing to use the services of a broker it is a good idea to obtain quotes from several different sources.

A price comparison website is an effective way to get the most competitive deals on your car insurance. These types of sites can compare literally hundreds of different insurers, including the more specialist companies, in a matter of minutes – and you only need to enter your personal and vehicle details once. So it is possible to save great deal of time – and money, too.