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Lucy F, Bradford UK
Car Insurance


No Deposit Car Insurance

If you don’t have the ready cash to secure an insurance contract, no deposit car insurance may be the solution for you. Often, an insurance provider may require some sort of deposit on a policy. The advantage is that it may reduce your recurring fees, but it may come at an awkward time financially. Historically, though, the deposit amount may equal up to an entire year of premiums. A no deposit car insurance provider waives this requirement, allowing you to drive legally and without the financial worries of driving without cover.

A deposit on auto insurance guarantees premium payment and continuous cover. Many no deposit insurance providers substitute a cash deposit for credit card information for automatic debit should your payment not arrive on time. Many carriers extend the automatic debits to required status, which means that your card will be billed without hassle or a lag in coverage, making it a win-win situation for carriers and consumers alike. The disadvantage to card-attached no deposit insurance is that it can be more expensive than a with-deposit policy. Each card transaction incurs processing fees for the carrier and an instalment fee for the users. Also, there is no hold placed against a card cancellation, so the risk is higher for the provider. The lack of monetary payment up front, though, often convinces users to opt for a no deposit auto mobile insurance policy anyway.

Flexible No Deposit Car Insurance

No deposit car insurance allows monthly payments of your premiums, granting that flexibility within your budget when you cannot pay in full for an annual policy. If your budget is too restrictive to afford a one-off payment on an annual policy, consider the possibility of a no deposit car insurance policy to give you coverage to drive legally.

Whether you try to sneak to the store or to work for even one day without insurance, you are still at very serious risk: Cameras scan UK roadways and note the tag numbers of vehicles. Those numbers are noted against a national database to ensure that car is insured and to verify the car has passed the annual MOT safety test. If you own the uninsured car, you get fined. If you borrow the car without insurance, both the car owner and the driver are fined – even if you are both entities. Save yourself from not only the citations on your record but also the penalty points on your licence and the financial burden of fines: Purchase no deposit car insurance.

Third-party covers are the minimum levels of insurance required, and you can find cheap no deposit policies that offer this basic protection for liability to property or injuries if you are found to be at fault in an accident. Third-party policies compensate others, but they do not compensate you.

Third-party fire and theft policies shift benefits higher with additional protection for damage from fire or from theft. This intermediate cover provides protection for your personal belongings that were in your vehicle as well. The plan still grants compensation to others for property damage and injuries caused by an accident at which you are at fault, but it adds those “what if” benefits as well. It still does not compensate you for your car’s damages or for your injuries, though.

Cutting Car Insurance Costs

When seeking multiple quotes from no deposit insurers in your area, you improve your chances at finding inexpensive, no deposit cover without that high deposit payment. Use the industry competition for your business and today’s technology to your benefit: Have several companies compete for your business by requesting several no deposit car insurance quotes simultaneously.

Even without the lump payment deposit, some insurance providers still grant some discount programs to their customers. One of the more popular discount plans for the best auto mobile protection is the no claims discount. Under this plan, if you complete a policy cycle without a claim being filed, you will receive a no claims discount on your next policy premium set. Since the no claim discount is often cumulative, some drivers enjoy premium reductions in the hundreds of pounds over time with some dropping as much as 65 per cent.

Other discounts may include premium reductions from steps you take to increase the safeguards you take to secure your vehicle: Use stronger locks, immobilisers, tracking devices and secured garages, for instance. Many consumers opt for a higher voluntary excess to effect lower premiums. By paying a higher voluntary excess, you reduce the financial risk for the insurance company, and that revolves back into reduced premiums for you. Additional premium discount can stem from driving a low-risk vehicle, living in a low-crime area, reducing the miles that you drive and by maintaining a good driving record, in addition to several other actions and options.

No deposit car insurance may be your answer if you are searching for quality car cover with minimal up-front costs. You might not have the funds available for a full deposit, but within a few moments, you can leverage technology and competition to sort through several plan quotes to find the best no deposit car insurance package for the lowest price possible.

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