Low Deposit Car Insurance
A low-deposit car insurance plan usually involves a non-standard payment structure that helps those motorists who may not have the ready cash for a full premium deposit that most carriers require but who are able to reliably pay slightly higher monthly payments in concession for the low up-front payment. Young drivers who are searching for their first solo insurance policy, students and anyone who would prefer this alternate arrangement might find a trustworthy carrier willing to carry a policy that includes a low deposit. Car insurance plans are usually somewhat flexible, but the most common type of scheme that reflects this structure is a monthly-only payment arrangement.
The Low Deposit Scheme
Low deposit schemes are as well or as loudly advertised on the Internet as the standard-designed policies, but if you find an insurance package whose premiums are easily affordable, but you don’t have that large, one-off payment, contact the insurance company. In exchange for, say, increasing your voluntary excess and slightly higher premiums than your quote reflects, you might negotiate a low deposit on the car insurance plan that caught your eye. These alternate plans, either originally or through negotiation, is more probable for a motorist with a clean record who drives an economical car – low-risk driver with a low-risk vehicle, so safe driving can open more doors than you might realise.
Employee plans might present a low deposit car insurance possibility, especially if you work for the insurance company. However, while it’s unusual, if your employer carries commercial insurance on fleet vehicles, the employer might convince that carrier to present a low-deposit arrangement for the employees of that insured company. That terrific benefit might help employee retention, for who wouldn’t appreciate working for that employer?
The Way of Viewing Protection
The drawback to low deposit car insurance is that other out-of-pocket payment are usually higher than a standard structure of protection might be. Very few carriers will agree to a low deposit if the car insurance involved is only third-party. You might find a provider willing to a low deposit arrangement on third-party fire and theft, but the most common insurance category would be fully comprehensive, the most expensive level of cover there is. If you can afford higher-than-average premiums and a higher voluntary excess in lieu of a full deposit, it’s a fair deal. But make sure you have enough free cash to save toward that excess, for routine maintenance costs, for fuel, parking fees and security features that might lower those premiums. Exchanging every free pence you have toward premiums won’t help in the long run. The insurance company won’t pay full repair costs; you have to pay your share too.
The car you drive will influence your premiums whether you have a low deposit on auto insurance or not. Consider that escalation on top of the higher premiums you arrange. You can lower premiums on a high-risk vehicle by not driving it often or far. Park it in a locked garage, and install and engage Thatcham-approved security devices authorised by your carrier. Above all, drive safely in any vehicle on that policy. Take additional driving lessons if possible, and send a copy of your certificate to the company when completed.
Buying a cheap auto mobile insurance policy is a goal of countless motorists. If you can find a low deposit vehicle insurance plan that you can afford and still pay all other bills, plus save for those out-of-pocket expenses mentioned above, this might be the type of policy for you as you build a solid driving record again. You might consider a pay-as-you-go policy that has no deposit or standard monthly policy that can be cancelled or reopened as needed per month.
Non-standard policy options do exist. Source comparable insurance quotes from multiple providers to get a good idea of standard premiums, then don your negotiations hat to see what low deposit car insurance deal you can find.