No Deposit Car Insurance: Get Cheaper Quotes For Car Insurance With no Deposit

Are you shopping for a no deposit car insurance policy? Can’t decide which one is right for you, or are you looking for more information?

Car insurance isn’t cheap and hasty decisions can prove to be very costly. It’s not surprising that no deposit car insurance policies are becoming a popular option when only recently the AA reported a steep increase in the cost of car insurance premiums, with young male drivers between the ages of 17 and 22 being hit the hardest with insurance premium rocketing by as much as 47%.

But despite the huge hikes in premiums car insurance providers are still extremely competitive. It’s a ‘cut throat’ market, they all want your business and will offer cheap deals, discounts and special offers to attract new clients.

If you are unable to pay for your car insurance in one lump sum or pay the initial 3 or 6 months deposit, the only alternative is to look for an affordable no deposit car insurance policy allowing you to pay your insurance premiums in monthly installments.

It all sounds quite straightforward, but depending on the insurer you may find there are some strings attached, it’s important that you always read the small print.

Although you will be paying in monthly bite size chunks, making no deposit insurance schemes a more affordable and attractive alternative, the overall cost of your car insurance over the 12 month period will be more expensive.

You will have to pay additional interest charges calculated on the total value of the policy, and depending on the insurer this can be as much as 20%

Spreading the cost of car insurance with a ‘pay-as-you-go’ no deposit car insurance policy makes sense if you are a young driver facing the hefty price increases levied by the car insurance providers, and especially young male drivers who can expect quotes in the region of £2,000 plus. Why so much? Well it all comes down to accident statistics, here in the UK approximately 33% of all road fatalities are caused by reckless young drivers up-to 25 years of age. Young female drivers on the otherhand are a much lower risk and will pay up to 50% less in insurance premiums compared to male drivers of the same age.

How to cut the cost of your ‘no deposit car insurance’ policy especially if you’re a young male driver

(1) Forget the 2.0 litre, 0 to 60 in 4.2 seconds ‘babe magnet’ and instead buy a cheap run-around. Big engine high performance ‘fast’ cars are classed as high risk and cost a great deal more to insure – get a small engine used car, as long as its in good mechanical condition that’s all that matters and go with the cheapest policy -‘third party only’ or slightly better ‘third party fire and theft’

(2) Go on the ‘Pass Plus’ course. This is a training course designed for newly qualified drivers which teaches more advanced driving skills such as, driving on the motorway, night driving, driving in congested areas such as town centres etc. Completing this course could save you up-to 30% on your car insurance.

(3) As explained earlier, insurers will charge you interest on a no deposit car insurance policy. See what the cheapest no deposit insurance quote is compared to the cheapest quote of an annual premium. If the cheapest no deposit car insurance quote charges more to pay monthly then why not consider paying for an annual policy in one lump sum with a new 0% APR credit card that offers 13 months of interest free credit and pay off the debt in ‘interest free’ monthly installments.

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