No Deposit Car Insurance

Finding monthly car insurance with no deposit to pay

Most insurers will now allow motorists to spread the cost of car insurance by paying in monthly installments. More motorists are choosing this method of payment because it is convenient and makes the premiums more affordable by helping to avoid the initial lump sum.

However, it can also bump up the cost of cover as insurers usually charge an administration fee, plus interest. On top of this many firms will insist on a deposit of up to 20% if you select the monthly installment option.

MoneySupermarket is well aware that many of its customers will struggle to pay this initial deposit and therefore obtains no deposit car insurance quotes as part of its mission to find the right deal for all of its customer's specific needs.

Avoiding the one-off fee

The cost of car insurance can sometimes be eye-wateringly high; an expense which a lot of people simply can't afford to pay-off in one go.

Some motorists pay much higher premiums. Young drivers are riskier to insure because they are statistically more likely to be involved in an accident and make a claim. Insurers therefore ramp up the cost of cover.

Of course, insurance is not the only motoring cost. There's also tax, fuel, repairs and maintenance, which can all add up. So it's perhaps not surprising that many motorists, particularly younger drivers, struggle to pay their annual premium in one lump sum.

However, paying for your premiums on a monthly basis rather than with a one-off fee is one way that car insurance can be made affordable. The only problem with this is the additional fees which are inherent with these policies such as the monthly interest charges which can make it the more expensive option overall. Nevertheless, those who cannot afford the initial payment may have no other option.

For example, you might search MoneySupermarket for a cheap motor insurance quote and decide on a policy that costs £520 if you pay upfront. If you opted to pay monthly, the insurer would ask for 11 installments of £51.60, so the total cost of cover under the monthly plan would be £567.60, or £47.60 more expensive. Of course, the convenience is often worth the additional cost. But you should also compare the price of monthly car insurance as competition in the market has pushed fees down. Monthly payments cost on average 10.68% more than the original premium. However, if you shop around, you can pay as little as 5.34% extra.

Why is no deposit car insurance a good option?

But watch out for firms that insist on a deposit of up to 20% if you select the monthly installment option. Let's say you pick a quote for £644. You might have to pay a first installment of £128.80, followed by 10 installments of £51.52. A hefty deposit doesn't affect the overall cost, but if you are struggling to find a lump sum, it can put the insurance beyond your financial reach.

This is where no deposit car insurance policies come in handy and they are the perfect solution for those who would be unable to find the money for either the one-off fee or the initial deposit.

Find cheap no deposit car insurance with MoneySupermarket

It will almost always be more expensive to pay monthly instead of upfront, but with MoneySupermarket's help you may not have to break the bank to get your car on the road. MoneySupermarket's free independent service allows you to compare quotes from more than 100 insurers to find the best deal for your car.

Through our service you can also compare no deposit car insurance which could help you better manage your finances by avoiding any initial large payments required in order to secure the monthly payment agreement; potentially making motoring affordable once more.