So your insurance renewal quote has
just arrived; you can't afford to pay it so now you have three choices.
Firstly you can take your car off the road; this means of course
informing the DVLA because it is now illegal to keep a car on the road
if it is not insured. Secondly, you could take the risk of driving
whilst uninsured; and a big risk it is, since all insurance policies are
listed on a central government database, and the authorities would be
alerted to the fact that you had no insurance in force; or you could, as
many hundreds of thousands of people are doing, pay your insurance
premium monthly.
Monthly payments always used to be accompanied by a substantial deposit,
not just because the insurance
company wanted to get their hands on
your money (which of course they do) but also because as a legally
binding contract an insurance policy must be accompanied by at least a
deposit in order for it to be binding on both sides. When a buyer takes
out a so-called no deposit insurance policy, the deposit is in fact paid
by credit card so although the insurance company receive the payment
immediately the buyer does not have to settle the bill until the
relevant card payment becomes due. Owing to the huge increase in
premiums and the recession this type of policy has become extremely
popular and the phrase 'no deposit car insurance'is now amongst the most
popular searches on Google!
Insurance companies have in the past been very slow to adapt to changes
but in the case of this type of policy many of them have simply had no
choice because there is a huge market which is likely to get bigger in
the future, and companies that do not offer no deposit facilities will
certainly find that their competitors will take away an awful lot of
business from them. This is particularly important in the insurance
industry, because a client who buys car insurance from a particular
insurer is an ideal prospective buyer for home insurance, pet cover,
life insurance etc etc and so many companies spend enormous marketing
budgets in order to bring new clients on board. For this reason there
are often very attractive offers for motorists who wish to buy their
policies without a deposit, and these are usually best found on a price
comparison website, where a large number of companies can be invited to
quote for both a straightforward pre-payment policy, and a no deposit
policy. Not every insurance company is prepared to offer this facility,
and of those that do, some of them can charge pretty stiff fees, which
means that the expensive quotation will have just become even more
costly! Nevertheless, for a lot of people are no deposit car insurance
policy means the difference between them being able to drive, and having
to park up their vehicles until such a time when they can afford to pay
the insurance bill.
zero deposit car
insurance