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