There are many ways to reduce the amount you pay for car insurance, it simply takes a little research to find which methods are the right ones that work for your needs. One of the more interesting schemes is lowering or even eliminating the deposit required for your car insurance.
What is No Deposit?
A no deposit car policy in the UK means that no money needs to be deposited in order to receive the insurance. Normally, a deposit of 10% to 20% is required in order to secure the insurance policy if you are making monthly payments. By foregoing the deposit, you can essentially save the equivalent of one month or more in your payments.
Qualifications for No Deposit Car Insurance
This is type of insurance is not available to everyone and only some companies offer no deposit in the UK. So, you will need to do a little research to see which ones offer a no deposit policy. The good news is that you can enjoy the benefits of not having to pay a deposit as long as you maintain your qualifications.
– Good Credit Rating
– Excellent Payment History
Both of these are standard requirements for obtaining a no deposit policy. Since the deposit is designed to protect the insurance company from having their customers bail out before fulfilling the full obligation of the insurance, a good credit rating or score is critical to obtaining a no deposit policy. In addition, if you have been with the insurance agency for a while, then having an excellent payment history is also very important as it shows that you can be trusted to make the payments on time.
Ways to Qualify for No Deposit
You can start by looking to your own insurance company to see if they offer a no deposit policy. If so, then check the rates that they will offer and then compare them to other insurance companies. You can do this by obtaining free quotes for no deposit car insurance. Once you gather enough quotes, you can then choose the one that fits your particular needs.
Another method is to pay for the entire year at once. While it may be difficult to raise the money, paying for all of the insurance means no deposit is required and you might receive additional discounts. If you can, paying for all of the insurance is a great way to save money and not have to make a deposit.
Why Choose to Forego the Deposit?
Although it may take some effort, in the end it will pay off considerably if you can reduce or even eliminate the deposit. The effort you make is certainly worth it to find out if you qualify. If you do, you can then shop around for less expensive auto insurance. If you do not qualify, then you can address the reasons directly so that you can correct the situation and save money in the future.
To find a no deposit car insurance policy can save you 10%, 20%, or more on what you pay which means more money in your pocket.