Why People Choose To Not Pay the Upfront Deposit
Usually, the value of an upfront deposit is taken off the total insurance premium. Not many people can afford to pay this though; that’s why they choose to go down the no-deposit path. People who have just bought their cars may be in a hurry to get their car insured and may find it inconvenient to have to pay deposit just so they could drive their car out of dealership. Meanwhile, others just aren’t comfortable with the idea of paying that much money upfront, considering the existence of car insurance scams.
How Do Car Insurance With No Deposit Policies Work?
Instead of paying the upfront deposit, customers are required to pay for it monthly or through installment. Oftentimes, this amount is already included in their monthly premiums. Most companies charge penalties for this payment scheme, however. But because there’s so much competition going on among insurance companies, some companies choose to forego the surcharges, allowing you to pay your premiums like normal.
Who Can Benefit More From No Deposit Monthly Car Insurance?
Car insurance no deposit required policies are most preferred by young new drivers and students, who most probably don’t have any spare cash to pay for the upfront deposit. Also, insurance for these types of drivers is usually very expensive, which is why no deposit car insurance will definitely benefit them well.
Though you are allowed to pay for the deposit over time or along with your monthly premiums, many insurance companies may charge you a certain amount of “interest”. Your monthly premium payments may be more than what you’d expect. In the long run, you will end up spending more money over time than you would if you had paid for the deposit upfront. Nevertheless, for most people this payment scheme is still more manageable than having to pay a big lump sum at one time.
Finding No Deposit Car Insurance Policies
You should start by hitting your local yellow pages and inquiring at any local car insurance companies. To allow you some leg room, you might even look into consolidating multiple insurance policies (i.e. grouping up your car insurance with your home insurance) so you can get a discount. If none of your local insurance companies can offer you a deal you like, you could try visiting various car insurance websites and applying from there. Most of them come with online application forms that can make car insurance hunting very convenient.
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