Very Cheap No Deposit Car Insurance
Do you not have enough cash on hand to pay the deposit for your new car insurance policy upfront, you are going to have to look for an alternative. One thing you can do to insure your new or used vehicle is to get a very cheap car insurance no deposit cover. These alternatives to traditional car insurance are also called no money down or no down payment car insurance. The main difference between the two is that you don’t have to pay an initial deposit in cash as a lump amount.
There are many companies that offer this type of car insurance as an option for people who don’t have the funding to afford the down payment on their brand-new car insurance policy. It is very beneficial if you are a part of this group. Surprisingly enough, most of the larger insurance companies offer this as an option too, so you won’t have to worry about getting scammed out of your money.
Of course, this doesn’t mean that you should leap into the signing of a no deposit car insurance policy contract. You still have to consider many factors, weigh the advantages against the disadvantages, and figure out whether or not your new no money down car insurance policy is your best bet. You can use our quotes compare tool above to find very cheap no deposit car insurance. If you want to learn more, please read on.
What is No Deposit Car Insurance?
If you own a car or drive one often, you will need a car insurance policy. You can’t just get any policy, either. You need one that will work for you. There are many insurance companies out there ready to offer their services to you. A no deposit car insurance plan might be the best way to save money and get car insurance when you don’t usually qualify.
Typical no deposit auto insurance plans involve signing up for a monthly plan instead, where you pay the cost of the deposit over a period of 12 months or more. This allows the company to waive the lump sum initial deposit off. The problem here is that you could be charged a little extra over time for the processing of your payments.
The best cheap car insurance no deposit policies are those that allow you to pay off the deposit in installments that happen less frequently, such as a larger sum every three months. Insurance companies have pay-as-you-go plans which allow you to secure a no deposit car insurance policy even when you don’t have a good credit score.
This method of insuring your car is better because car insurance is typically bought for a period of up to one year. The policy can be cancelled at any time by the company. By paying on a regular basis, you ensure that your insurance remains intact for the duration of the policy period. Monthly payments are popular, but are not recommended. The reason for this is that if you forget a single payment or you can’t afford it on one month, you risk having the plan cancelled.
Tips for Paying Your No Deposit Car Insurance Off Monthly
When you get yourself a car insurance plan without a deposit, you will need a company that approves the payment of the premiums and deposit on a monthly basis. A good tip to follow here is to pay off your car insurance one month before the actual month begins. This ensures that your company has the premium in their hands before the start of the month which it was for. This basically secures your coverage in the same way a lump sum deposit would.
A good example of this is: pay off your insurance amount for August in July, so that you will be covered for the entirety of August without having to worry about a cancelled policy. This is a common practice – if you get into an accident in a month and you haven’t paid the insurance payment for that month yet (if you get in the accident on the 10th and the payment date is the 11th), your insurance company might try to say that the accident wasn’t covered under the insurance for that month.
What Can Go Wrong with Monthly Payments?
While monthly payments of your premiums are a good way to get started on no deposit auto insurance, there is plenty that could go wrong and put your coverage in danger. Some of these include:
- Forgetting to pay off the premium before the due date
- Losing a check or a payment in the mail
- Insurance companies taking too long to push payments through
When you get yourself a car insurance policy with no deposit, ensure that the insurance company that you are working with puts the payments through in a timely manner each month. If you have a maintenance fee for each payment you make on the monthly plan, ensure that this fee is a reasonable amount.
The Factors that Affect Your Insurance Cost
Did you know that your credit rating plays a rather large role in determining your car insurance rates? In fact, the amount that you would need to pay as a deposit in a normal plan also depends on this score. Other factors that impact your car insurance rates include your record, age, vehicle, job, address, and even your home life.
What Car Insurance Companies Ask For
Before you get online and start conducting your research into the many no deposit auto insurance policies out there, you should know what you need to qualify and apply for the approval of an auto insurance plan. These factors matter greatly in your application for new or used car insurance with or without a deposit, so make sure you have the information you need.
- The details of your vehicle
Many companies today that offer very cheap car insurance no deposit will ask for details about the car or cars you drive as well as why you want to cover them with insurance. Do some digging into your car so that you can tell them the make, model, and the year of the car. If you have bought your car used, you may also want to look into the previous owners of it and give the company the entire driving history of the car.
- Personal details
Most car insurance companies will also ask you for pretty much all the details about your personal life. This is usually a requirement if you are getting your insurance policy with no deposit. Get your hands on any and all personal data including your driving record, old insurance details, and the details of cars you used to own. If you want to find who has cheapest auto insurance you’ll need to give the most update and accurate information you can to the insurance companies.
The Perks of No Down Payment Auto Insurance
No deposit car insurance is fast becoming a popular choice for people who can’t afford the initial deposit of their car insurance plan. There are many benefits to getting this form of insurance. Some of these include:
- No upfront money has to be paid
One of the bases of getting one of those very cheap car insurance no deposit plans is that you don’t have to pay any money upfront to get the policy. In any other car insurance plan, you have to pay a deposit in order to secure the terms. The insurance policy only enters full effect when this deposit has been paid. However, when you get a special no deposit plan, the insurance company activates your protection without you having to pay a lot of money initially.
- It helps when you have bad credit
When you get normal car insurance anywhere in the country, you pay a deposit. This deposit is a security feature of sorts that tells the insurance company that you can make your payments on time each month. It is also a way for the company to protect itself if you default on your insurance payments. Since your credit score counts for a lot when it comes to this type of payment, you will be better off with a no deposit insurance plan where the rating isn’t taken into consideration as much as it usually is.
- The cheapest rates are available
More often than not, the insurance premiums you have to pay when you use a no deposit car insurance plan are cheaper by far than their counterparts in normal plans. This means that you get to save a little more money each month during the course of your coverage. No longer will you have to draw yourself thin trying to make ends meet because of how draining the insurance premiums are.
- You get the best protection
One of the best things about the law in this type of situation is that it is fair. There is a certain standard of protection that a car insurance company needs to stick to with their plans. This is assured regardless of the type of plan you get or how much you paid for it. You will always get exactly what you paid for. When you are involved in a collision, the company is required by law to treat you just like they would any one of their other customers.
- You are granted insurance for a better future
Car insurance is required in some countries and states. In others, it is an option. However, getting auto insurance could save you from bankruptcy when you’re involved in a collision. There are many people out there who get in accidents and can’t afford to pay for damages out of their pockets. This is mainly due to the damages costing tens of thousands of dollars. With a no deposit auto insurance plan you get the coverage you need to secure your future.
No Deposit Car Insurance is Perfect for Youth Drivers
IF you are between the ages of 17 and 25, you are going to struggle a little when looking for a car insurance policy without a deposit required. This is usually due to the fact that a large percentage of people in this age group are unemployed or have no credit history to speak of. However, if you can do a little legwork and show your insurance company that you aren’t a flight risk, your chances of being eligible for a deal in auto insurance like a no deposit policy greatly increase.
Which Car Insurance Companies Don’t Ask for Deposits?
Getting very cheap car insurance no deposit required is easier than it used to be. Some of the larger insurance companies in the country like GEICO and Progressive Insurance are now among those offering this service to anyone who needs it. Depending on your state and your address, there may also be smaller companies in the local area that offer no deposit auto insurance. Check out your no deposit options nearby using your zip code when doing research.
Watch Out for Insurance Scams and Fraud
When picking out a car insurance company, the risk of getting scammed is a large one indeed. It is important that your choice of a company is reputable and safe. If you don’t ensure this fact, you are placing your money and your vehicle in danger. Of course, insurance companies are typically harder to fake than other fraud schemes. It is still a possibility, though, so make sure you keep yourself wary.
How to Keep Your No Deposit Insurance Policy Cheap
In addition to the savings you can enjoy when you use a no deposit auto insurance policy, you can also make the rates on your coverage cheaper for even more savings during the course of your insurance period. Take these nifty tips and tricks and put them to work for you.
- Job titles are important
When filling out the application for an insurance policy, what do you put in the “job title” field? The exact wording you use could save you hundreds of dollars a year in your rates. For example, if you are chef at a restaurant, consider saying that you are “kitchen staff” instead. Specialized jobs like this are required by the companies to pay a little more because they can afford it. In the same way, special instructors must pay more than general teachers, managers more than supervisors, construction site workers more than masons, and so on.
Think about the different ways in which you can describe your profession. Go online with a list of this and request quotes for each one to see how your title changes your insurance policy rates. Remember that retirees and stay at home moms can be eligible to pay less than those who are unemployed. If you are the former, do not check the unemployed box on the application!
- Experience is the key
Adding a secondary driver who has a ton of driving experience and a clean driving record to your policy is a good way to reduce the rates. Do not list them as the primary driver if it is your vehicle – this is illegal. With their permission, though, you can add them as a secondary driver and use their driving history to reduce the rates on your insurance policy.
- Stop delaying payments and other actions!
If you truly want to save money on your car insurance, make sure you look into your other options every time your renewal date draws near. Don’t switch your insurance policy on the day of the renewal itself, though, as this could endanger your savings. If you can do it a week or more before the date of your current policy’s renewal, you might save a few hundred dollars!
- Use referral sites to get money back
This is another way to save some money and get paid too. When you switch your car insurance over, make sure you use a cashback referral site to do so. These sites have offers for cash back if you switch through their services. Compare prices for insurance policies without deposits on one of these or online, then go over to one of these cashback sites and switch through it for a better deal!
- Stop paying for the extras
Before you start paying for your car insurance no deposit policy, take a look at the quote. See if there are any extra features you are paying for that you don’t need. Some of these include coverage for breakdowns, broken windshields, personal valuables in the car, foreign insurance, accident coverage, and more. Each of these “extras” adds a little more to your insurance rates. The worst part is that your other insurance policies like home insurance might already cover some of these, which means you’re paying more for the same protection twice.
Always check to make sure that you aren’t paying twice for the same feature. Also make sure that you actually need these extra features you’re paying for. One last thing to check is the excess, or the deductible on your insurance. Deductibles are the amount you pay on your own when you are making an insurance claim. You usually have to pay this amount even if you’re entitled to the entirety of the money in the claim. Lowering this amount increases your premiums. Find the right balance between what you can afford and what you don’t want to pay. Make sure that the extra features you remove are truly not needed; if you do need more coverage you can buy cheap full coverage car insurance online.
The Bottom Line
If you look hard enough you are bound to find very cheap car insurance no deposit required plans in your area. However, you must do your research before signing up for a plan like this. You should also check to make sure you aren’t making a mistake with using this policy. If you’d like more coverage you can find cheap full coverage car insurance here.