So why is paying a deposit for your car insurance such a big deal? Other people want to know how much is the percentage of a car insurance deposit? Why does this make car insurance with no deposit so popular?
Getting your car insured for most people is an annual event, you search online to compare quotes to see where you can get the cheapest quote. After finding the right policy at the right price many people will then pay for their annual policy outright. If you have all your no claims and drive a popular car, have no convictions and are in the right age group then you may be paying as little as a few hundred pounds. On the other end of the scale however your policy may be costing you thousands.
If you have an expensive policy due to your circumstances then many people choose to spread the cost of the policy over the year. Most insurers now have a monthly payment option that you can choose which may be funded by the insurer or by a third party finance company. For this option you will have to pay a deposit, the amount of deposit is usually a percentage of the entire policy and tends to be give or take up to the equivalent of 2 months worth of premiums.
Now for many people this will not be too much of a problem, it still means that they are able to afford the insurance policy. For other people on a tighter budget having less disposable income they might not be able to afford to cover the cost of the deposit all at once, remember the deposit could run into the hundreds of pounds for some policies.
As a more affordable alternative that is easier to budget for is to take out car insurance with no deposit. So how can this be possible if most car insurers require a deposit upfront? You can take out a pay as you go car insurance policy where you buy your insurance a month at a time. This means that there is no deposit to pay, you just pay equal monthly premiums for as long as you need the cover making this a more affordable way to insure your car.