Car Insurance with No Deposit
Car insurance with no deposit may sound like an anomaly when friends, family and co-workers are conditioned to scraping together a deposit that matches the total of an annual premium. However, it is conceivable, possible, existent and fairly popular. Car insurance with no deposit isn’t available with every carrier, but there are enough of them in the UK to make this type of cover plan one to investigate. You simply compare insurance rates based on a zero-pound deposit. You will probably see a month-to-month plan listing, for that is precisely what car insurance with no deposit uses as its base. The difference is that whilst many monthly policies require some kind of deposit, obviously a no-deposit policy requires none.
Run Through the Contract
Unfortunately, this is one policy type that is subject of many insurance scams, so read through your policy information with care. Open a different tab or browser and find the carrier’s website. Read the information there to ensure the online content and your policy information match. Then go one step farther. Instead of taking their word that they are authorised by the Financial Services Authority, contact the FSA to ensure the company is legitimate and financially sound. Since the FSA is the only organisation to authorise any company to issue insurance, those consumer advocates would have the most current data. They can even run a background investigation on the company if that’s what you wish.
As you peruse your insurance contract, for that’s what a car insurance with no deposit policy is, watch for restrictions and conditions. Before you buy, ensure you understand completely how to cancel the policy, how much of a notice you must give if any, any penalties they require if you quit the policy prior to the annual renewal time. Know if you can pay in advance, and know what you must do to receive overpayments without penalty. Above all, ensure it’s a legitimate policy by contacting the FSA. An alternate source of information might be the Association of British Insurers as well.
Know what coverage level your no-deposit car insurance provides, and especially understand what it does not. Read how to change your policy benefits via either an upgrade or downgrade and how that will change your premiums. Be on special alert for any kind of additional payment at any point, for some carriers do charge a fee that is the equivalent of a deposit; they just don’t call it that. If you paid in advance, know how that prior payment will be disbursed according to the adjusted coverage levels and especially if that disqualifies a no-deposit disposition.
If any of this information is not provided, contact the carrier and ask. Get written confirmation of all answers provided: Don’t count on a disembodied voice on the phone. The representative may provide accurate information, but written confirmation avoids your own memory from filling in gaps on its own: You may not remember exactly what was said. It’s natural. Just get written answers to ensure you know all you need to before you buy any car insurance with no deposit.
An Online Comparison
If you are interested in car insurance with no deposit, as many young drivers or students on tight budgets are, first check via your preferred search engine to see if the type of cover is available in your area. Note the names of familiar companies. Then open another browser tab or window and find online quote comparison sites. This one provides free tools, for example, that contact hundreds of carriers on your behalf. When you complete the application and request quotes, you are not obligated to buy any of them. You can conduct search after search, each with multiple quotes from leading providers in the auto insurance industry. You should find several viable premium and policy options to investigate closer.
You can tailor your policy to a particular auto insurance category, opting for minimal cover of a third-party policy or extend all the way to the best value in insurance, a comprehensive cover level. Your insurance cover type will, of course, influence your monthly payment, but since you want car insurance with no deposit, even comprehensive cover might be affordable. Consider buying a policy, either online or offline, only from an authorised carrier in good financial shape; verify before you buy, and drive safely to take advantage of all discount and bonus programmes available.