No Deposit Car
Insurance
How many people, I wonder, will buy a car today,
and completely forget about just how expensive it is going to be to
ensure their new pride and joy? With a huge rise in the cost of car
insurance over the last few years, and particularly over the last 12
months, premiums for many people are getting way beyond a joke and it is
not much fun to have bought a new motor only to find that one cannot
afford the insurance premiums for it!
Nowadays we are looking at absolutely frightening premiums for many
motorists, with quotations on average approaching or even exceeding four
figures for even relatively modest vehicles and drivers with good
records. A lot of motorists, to put it bluntly, simply cannot afford to
pay these premiums upfront and it was common back in the days of
unlimited loans for people to borrow the money to pay their car
insurance, often over long periods and extortionate interest rates, in
order to get themselves on the road. Those days are now gone; the
problem still remains and a lot of insurance companies have answered it
by producing no deposit car insurance schemes, about which you can find
info here.
It started with a small number of companies offering monthly payment
facilities for the bulk of a policy, with a deposit of around 20%
payable in advance, and then some enterprising insurers realised that
they would capture far more business if they could eliminate the deposit
and so no deposit schemes were born. These entail the splitting up of
the premium into 12 equal bites, which are paid monthly, the first
payment at least be made by credit card. This means that it is possible
to ensure the vehicle even if the buyer has no money at all in the bank
with which to pay the premium! What has to be recognised however is that
this is usually a more expensive way of buying insurance because the
insurance company would far prefer to have the money in its own bank
accounts, in advance! Hardly surprisingly then, most of them do add
interest of anything between zero and 24% APR or even more, and so it is
a product which has to be bought carefully in order to avoid making an
already expensive policy even more so.
Insurance will never be cheap again; there are however a lot of offers
on the market because car insurance is a highly competitive business to
be in and so insurers will sometimes bend over backwards in order to
attract new clients. Since a very large number of people nowadays wish
to pay for their insurance on a monthly basis it is very often possible
to get a very attractive deal indeed by shopping around, and the easiest
way to do this is by using a dedicated no deposit comparison engine.
This will sort through a large number of companies and provide you with
details of not only what the basic premium is but also what it will cost
you if you make your payments on a monthly basis with no deposit.
Sometimes the difference in premiums are surprising; insurance companies
recognise the fact that although someone buying their policy may require
monthly payments at present, but does not necessarily mean that the same
situation will exist when the policy comes up for renewal. Insurance
companies are extremely fond of people who renew without looking around
for alternative insurers, because they do not have to to offer them any
initial discounts and can often get away with sneaky price increases,
relying upon natural human inertia to stop their customers from looking
around for a better deal. The moral therefore is, if you buy your car
insurance through a no deposit scheme that you found through a good
comparison site, then use the same comparison site again next year when
your renewal premium is due; you could save yourself a great deal of
your hard earned money!
Copyright
Jean Lefebre
2008 |