Low Deposit Car Insurance

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  • Attractive payment terms
  • Start your insurance with a small deposit
  • Customize your policy the way you want

No matter how much you compare car insurance or look for car insurance quotes fetching the best value, spending the entire amount upfront or on an annual basis, may not work well with many of us. In such cases, a monthly payment plan with a low initial deposit can help.

Who Needs Low Deposit Car Insurance?

The very purpose of low deposit car insurance is to help car owners who cannot afford to pay a hefty sum as initial deposit.

Look At The Complete Picture

Many believe that cheap car insurance and low deposit car insurance are the same, which is entirely counterintuitive. Spreading the cost of your car insurance might put a lesser burden on your pocket in the beginning. But remember, the interest will add up to cost you more in the long run.

Here’s a small case study wherein the same insurance plan might be available under three types of payment options:

  • Annual Payment – Pay 800 GBP upfront
  • Monthly Instalments – Initial deposit of 160 GBP (20% of total sum) followed by ten monthly instalments of 70.4 GBP (64 GBP plus 10% interest of 6.4 GBP). In total, this adds up to 864 GBP
  • Monthly Instalments – Initial deposit of 80 GBP (10% of total sum) followed by ten monthly instalments of 86.4 GBP (72 GBP plus 20% interest of 14.4 GBP). In total, this adds up to 944 GBP

As you can see above, the annual payment plan will cost you less in the long run, though some of us still prefer monthly instalments when we cannot afford to pay the entire sum in one go.

Even under the 2nd and 3rd low deposit car insurance plans cited above, the interest charged is always lesser if you agree to pay a higher deposit in the beginning. The smaller your initial deposit, the higher your interest, and instalment.

Another payment option would be credit payment. You can save on interest paid if your credit card has a ‘zero-percent’ purchase deal that lasts through the entire instalment period. But most credit card companies charge a fee for such an arrangement. So it would still cost you more than yearly payment.

Low Deposit Car Insurance Quotes

Even if you have amassed all the necessary information about low deposit car insurance and the standard norms of a car insurance calculator, your work is only half done. When you look at the market, there are thousands of insurance sellers across the UK, and this is where our panel of experts at Rhinosure come in to assist you.

Whether you are looking for cheap car insurance or low deposit car insurance, in particular, we get you the most competitive quotes from leading insurers. It is our responsibility to negotiate with underwriters to fetch you the best cover and a flexible payment plan. All you need to do is to tell us how much initial deposit you are willing to invest and the instalment duration. As UK’s leading, independent insurance broker, we are always at your beck and call!

Get Insured In Minutes

Call us to get the best low deposit car insurance quotes, and also to get insured online, quick and easy. It really is as simple as it sounds. Give it a try now!

What About No Deposit Car Insurance?

Nowadays, ‘car insurance without deposit’ is being sold by many dubious insurers and brokers, but the truth is that there is no such thing. No insurer will allow you to buy a car insurance policy without paying something upfront.

Even in the case of low deposit car insurance where you spread the total cost over months, the first payout is always bigger than subsequent installments. So it is technically not an instalment, but a small deposit (which usually ranges from 20 to 30% of your total insurance amount).

In rare cases, the insurance seller might agree to equal monthly instalments right from the first month but the interest will usually be higher, and you will have to make the first payment immediately.

Your Low Deposit Car Insurance Checklist

Apart from the standard security installations and protection of no-claims bonus, here is a checklist that can help you save more!

  • Always try to pay a higher amount upfront to bring down your monthly payable amount and overall interest.
  • The number of months you want to spread out the instalments over also determines the interest you pay. Say, if you agree to pay the entire amount over nine months, you will be charged a lower interest rate. For the same cover and premium, if you instead spread out over 12 months, the insurer will charge you a higher interest rate.
  • Always agree for a voluntary excess, which you feel is affordable in the event of a full claim, and yet not too low. This will keep bring down your premium payable to a certain extent.
  • Try to opt for a flexible cover so that it can accommodate optional extras as and when you require.
  • Check if your insurer offers discounts under black box policy, which monitors driving performance.
  • Agreeing for higher voluntary excess will automatically lower your premium. But do not go overboard with this practice as very high voluntary excess will burn a hole in pocket in case of any significant payout