Does No Deposit Car Insurance Help.

Is there such a thing as no deposit car insurance?

For many of us, it is difficult to come up with a lump sum to pay for something such as insurance.  It can be quite a large amount of money to pay all at once, and so the option of no deposit car insurance can be quite attractive.

No deposit car insurance means that you receive immediate car insurance coverage right away, as soon as the policy is placed over your vehicle, and you do not have to pay any money up front.

You can pay the policy on a month to month basis in installments; however, you may need to provide a credit card for assurance that you will send in some post dated cheques or a void cheque for automatic withdrawals from your bank account.

There is no disadvantage to no deposit car insurance really, except that you are probably going to pay a little bit more for your car insurance policy over the long run.

The reason for this is that the specialist auto insurance company under writing the policy is basically financing your car insurance and so they are going to charge you a monthly fee or premium for that and probably some interest as well.

This fee and interest is usually broken out over a twelve month period to make it easier for the insured to make the payments.

Of course, if you can afford to, you may wish to pay the entire policy up front and avoid any financing charges.  You could easily plan ahead by a year and put the money away monthly for your new no deposit car insurance policy when it is time to renew.

Comparison shopping is very easy to do these days, with the advent of the internet.  All you need to do is fill out your information in an online form and you will receive several competing quotes from various insurers, all of whom want to do business with you.  Be sure to give specific details surrounding your requirements that way you will find the best auto insurance companies.

Keep in mind that if you drive a newer car you will pay higher premiums than if you have a used lower value car.  Always ask what the coverage entails, and be sure that you have adequate coverage to suit your needs and those of your family.

If other people are going to be driving the car, do not forget to mention this no deposit car insurance can have tighter criteria.

Sometimes insurance companies will not cover a driver who does is not named in the policy and this can spell disaster in the case of an accident.

Knowing what your coverage encompasses and who is covered within that policy is your best bet.  Always ask to see the entire vehicle policy and read every detail of it, including the fine print.  Know your policy inside and out and never commit to something that you do not want or are not happy with.

No deposit car insurance is a newer offering but it is very convenient for a lot of people who juggle several payments each month.

 

 

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9 Responses to “Does No Deposit Car Insurance Help.”

  1. Michael says:

    If you were to say, get in a wreck and you had this no deposit insurance, what kind of a fight are you going to have to get the company to pay for the damages and to possibly replace your vehicle. For example you sign up for this insurance and it starts but you haven’t even paid your first month yet and you total your car, what is the insurance company going to do about that? I think this is a good idea but I have to be honest I am a little leery about it.

  2. Claude says:

    With the no deposit insurance does it offer the same coverage as the insurance that requires a deposit? Are the deductibles different because you are paying by the month and like you said they are basically financing your insurance for you? This sounds like a good idea for those people that are on a tight budget and need a little extra every month, unless they are killed with higher deductibles or their coverage isn’t quite as good. Great information though and it will give me something to research a little more to see what other companies may offer this option.

  3. Julie says:

    I do not know if it is just my own ignorance, but I have never heard of this type of option of car insurance before. It makes you wonder how it works behind the scenes. What I am talking about is how the auto insurance company handles or covers the deductible in order to be able to offer month to month car insurance with no down payment. Unless of course, this indicates that the deductible everyone has become accustomed to paying for an insurance policy is just an extra, unnecessary charge that insurance companies have been getting away with tacking on to the policies for years in order to rip off their clients.

  4. Liza says:

    I guess it has been a long time since I started a car insurance policy. Haven’t you always had the option of paying monthly with only the first payment due? Is this basically the same thing you’re talking about?

  5. Brittany says:

    I am about to get my license reinstated after a long stint of having it suspended and since I haven’t been able to work, I do not have any money saved up for a down payment on car insurance. So this is a welcome piece of news that I hope will enable me to get a used car and then insure it without having to wait until I can save up the money. If I have to do that, I would have to drive my car uninsured to and from work until I save up the money for a deductible. So this is a blessing of an opportunity for me that will get me back on track.

  6. Lois says:

    I have just recently had to tighten my budget belt quite a bit so I am going to research this no deposit car insurance a little further because it definitely sounds like a way to save some much needed money and it will be easier to fit into my new budget. Thanks for posting this information it will help people like me tremendously.

  7. Terrie says:

    I wish that utilities and such would take a hint from this “no deposit car insurance idea. Either way I think it Is a great idea and if more insurance companies would offer this as an incentive to take out their insurance their business would grow by leaps and bounds. People can’t afford to pay the kind of money they used to for things like insurance and utilities and even rent or mortgage payments. With the economy in the tank and no improvement in the foreseeable future and the job market the way it is, I think a lot of companies are going to have to start looking at options like this. Great post with a lot of very informative material.

  8. Before you lock yourself into any insurance policy, make sure that you have the financial means to cover it. If you happen to let your insurance lapse, you might end up paying a whole lot more to receive coverage again. Having the financial means to cover your policy for the duration is important.

    Be aware of what your FICO score is and know how to change it if you want to save big on your auto insurance. Auto insurance companies are using your FICO score to determine just how much of a risk you pose to them. Having a poor score will mean you pay more. It’s as simple as that. So check your score and learn how to improve it.

  9. William says:

    I have no deposit car insurance right now and it is great, I know exactly what to budget monthly for my insurance or I can pay it once a year in one lump sum. I will say that in order to get the no deposit insurance I had to pay a little bit more every month in premiums but I think It Is worth it for an extra ten bucks a month. Most of the quotes I received from other companies figured to be about ten to twenty dollars less a month but they required a full months deposit up front. Thanks for posting this information I know you helped me out.

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