If you are little tight on your budget and you are unable to have car insurance because of this, then there may be another option for you. Car insurance with no deposit is the option where you don’t need to pay a large amount of money upfront as the deposit. You can pay your deposit with your monthly installments as a part of 12-month insurance plan.
Having car insurance is more than safety measure, it is a moral duty of everyone. However, if you’re unable to cover the cost of insurance, then there is an alternative to it: car insurance with no deposit.Monthly payments of car insurance can be expensive, and if insurance companies expect you to put a hefty sum upfront, can be a difficult situation for you. But if you get a no deposit auto insurance and spread the total amount into a long-term monthly payment plan then it can be convenient for you to have your car insured.
What is car insurance with no deposit?
When we talk about no deposit auto insurance, then it does not mean that companies are not going to ask for any deposit before giving you an insurance plan. All car insurance companies expect you to put some money upfront before they can provide your vehicle with any type of cover. Usually, if you a huge amount of money handy then you should pay your deposit as is cheaper. But you can also spread the total amount of insurance into a simple 12-month installment plan where your first payment will a higher than other installments.
Always ask the insurance companies to provide you a break down of all the costs of insurance. The first payment of cour car insurance will be higher than other so always check if you have that much of money in hand before applying.
Insurance companies who provide no deposit auto insurance:
There are few companies in the market which offer services like instant car insurance with no deposit or very low deposit. Two of the most trusted companies are Progressive and GEICO. Both the companies are among the largest insurance provider in the US. There are some regional companies who provide car insurance with no deposit, but you have to do research about them before applying.
It is important for you to know that you should apply for no deposit car insurance companies to those companies only which are reputable. There are many fraudulent companies, but chances of you getting ripped off by them are very low.
How to apply for no deposit auto insurance?
To apply for no deposit auto insurance, you have to check following things:
- Check whether your current insurance company offers this service. If they offer this service and you qualify for it, then you should apply for it.
- If not, then you have to search for any other company.
- If you have a good credit history, then you have higher chances of getting your loan approved.
- Important documents such as bank statement, diving history, credit history are required while applying
There are both benefits and drawbacks while applying for no deposit car insurance. Benefits such as cheap insurance, better budgeting opportunities and less money to pay upfront are very lucrative. But drawback such as higher monthly premium can make you think about it. Therefore always go through both benefits and drawbacks and then make an informed decision.