A deep look into the meaning of no deposit car insurance

Because car insurance is a highly, if not the most popular segment on the insurance market, it comes hardly as a surprise that it continually designs new types of covers and modifications of the standard and established ones. Fairly recent introductions are the pay-as-you-go insurance, the short term insurance and no deposit insurance. While insurers are still to introduce them on a wide scale, they have been permanently established as products on the market. This articles summarises the characteristics of the no deposit car insurance.

No upfront fee

By definition and as its name presumes, no deposit car insurance is the cover which needs no lump sum paid upfront. While you again sign an annual contract, you are allowed to pay in monthly instalments. In this way, you can allocate payments of oft expensive insurance contracts over time.

One of the greatest benefits is that there are no hidden extras. You set up your car insurance plan with set monthly payments and you won't be surprised by £100 starting deposit plus the amount you pay for month. This is very convenient when finances are tight and helps manage your budget better. 

What to beware

On the surface of it, it all appears like a good alternative. It closely resembles the subscription model long appropriated by a number of markets, thus looking familiar and tested. On the other hand, insurers have balanced off deferred payment with extra fees, either in the form of interest payment on your monthly premiums or as high cancellation fees in case of early withdrawal. Usually, these charges are higher than for conventional annual covers because of the inherently higher risk of default on payment.

Discounts as usual

If you are an impeccable driver on the road with no motoring convictions or claims, you have no medical conditions affecting your driving and your car is in a good condition, then, like with all other covers, you are entitled to discounts. Do not miss out on claiming them when talking to your insurance agent or filling out a form.

Since no deposit car insurance is still in limited supply, it is best that you start your search with websites specialising in cross-comparison such as uSwitch. Go to the car insurance section and then fill out a form specifying the details of yourself and your car, as well as emphasise on your special interest in no deposit covers.

To ensure you have grasped the full picture, double-check with Confused.com . This website guarantees an independent comparison because it has no affiliation to any car insurer.

The car insurance specialist Be Wiser can tailor for you a no deposit car insurance and offer you add-on covers free of charge, among them being handbag and gadget insurance, legal protection and much more.

You may want to read about: No Claims Car Insurance