Car insurance with no deposit | and a year to pay

Cheap car insurance with no deposit

We have all had that horrible sinking feeling when our car insurance renewal form has arrived through the letterbox. Fair enough, we have heard that insurance costs have risen worldwide and that insurance for cars has gone up through the roof but these are problems that affect other people, not us! Well, the day has arrived when we must pay, like everyone else, for all the disasters which have befallen the insurers industry over the last 12 months, from tsunamis to young drivers causing motorway pileups, and we are faced with the hard and simple fact that no matter how unpalatable it is, we have no choice but to pay out for a car insurance policy. We get onto the Internet to try to find a cheaper quotation, but if anything they are all even more mind boggling than the one that we have been offered already, so what do we do? Well, one option is to pay up with a grin and forget about that two weeks on the Costa Blanca that you had planned, and the other is to investigate the possibilities of this newfangled no deposit car insurance that you have heard all about recently; perhaps from here.

No deposit is perhaps a misnomer; delayed deposit is a far more accurate description. No insurance company can truthfully offer a truly zero deposit car insurance policy because it simply would not be a legal contract. Under British law, and as far as I can work out just about every other countries law as well, it is necessary for every contract, including an insurance contract, to include what is legally called a consideration, and which in non-jargonese means that you have to either pay up front or provide at least a deposit. You do in fact pay a deposit, but it is done by credit card which means that you do not actually have to face the bill for this for some considerable time. This means that you can get insured right away without having to pay anything up front out of your own pocket.

Ah, you may say, but what about the rest of the payment? Well, this is paid on a monthly basis too. You may think that it is very kind of your insurance company to offer you a facility like this but there is a big drawback; they are likely to charge you for it. Call it an interest charge, call it an administration charge, there is no difference; virtually every insurance company charges extra for no deposit policies and it is very hard to blame them when you bear in mind that policies of this nature carry a much greater risk of the person who took it out failing to meet all repayments.

The insurers, however, really have no choice. Since the widespread use of the Internet we consumers have all become a lot more savvy and we have got used to searching online not only for better prices but also for better products too, and since no deposit schemes were offered some time ago their popularity has exploded and so insurers have had to face the fact that if they want to have a large share of the market they need to have a similar product to offer; and the market is huge. Insurance costs have risen dramatically over the last 12 months and paying out for all the different policies that an average family needs has become a major financial burden. Despite the high cost of car insurance a large proportion of the insurers out there are still making a loss on their car business, and so the likelihood is that prices will rise even further in the future. More and more people from now on will be expecting their insurers to offer this type of product if they wish to keep their business.

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