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.