Car insurance - no deposit?

So, you have just spent months and months saving money to purchase the car of your dreams. You have worked long, gruelling hours at your job, yet not once have you complained because you have kept that car in the back of your mind. Now, however, you realize that you need to spend even more money to buy car insurance. Letting the car sit in your garage simply is not an option; that vehicle needs to be seen! You sit down at various car insurance websites to compare quotes for the cover you need, but you realise that most of these premiums simply are not in your budget. Is there anything you can do to get your car out on the open road?

You may consider just driving your car without buying insurance, but that is a risky move and you will most likely be caught. Police across the country are buckling down on drivers, ensuring that everyone has proper insurance. This is actually a benefit to you; if you are in a car accident and the other driver does not have insurance, you will receive no compensation for your injuries if you do not have that option on your own policy. You may know that it is illegal to drive a car without having cover; you may not know that you cannot legally own a vehicle, even if you do not drive it, without car insurance unless you have made a SORN declaration.

Chances are, you can probably afford car insurance but only if you are allowed to make monthly payments on the policy without paying any money up-front first. Well, the good news is that many car insurance companies can offer you this luxury. However, some insurers charge for this benefit while others do not, so make sure you shop around and research each provider thoroughly before choosing a policy. Additionally, some insurers may invoke penalties should you fail to make your monthly payment on time. A good rule of thumb to remember is that if a policy is cheap, the penalties are high. Car insurance comparison websites exist to allow consumers and budget-minded drivers like yourself to see how policies fare side by side. You can compare full policies that require up-front payments, as well as the initial deposit for a monthly payment plan and the total cost of the policy.

Is there a catch to these no-deposit monthly payment plans? This payment method is not exactly what it sounds like. While you have the added convenience of paying every few weeks, you still have to pay a small deposit to purchase the policy; in the UK, a sum of money has to be paid for the policy to be considered valid. In order for the contract to be binding, both sides have to have some advantage. In this case, the insurance company is receiving money and you are receiving the benefit of making monthly payments. Do not despair if you believe you do not have this small sum in your budget. Many insurance companies allow you to charge the initial payment to a credit card; so theoretically, you really do not have to pay a penny out of pocket right away.