No Deposit Car Insurance

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The Deal With No Deposit Car Insurance

Looking for car insurance with absolutely no deposit needed? Well, you might be in for a surprise. Long story short, there is absolutely no legitimate “no deposit” car insurance, and if you do come across a provider that is claiming to provide such a thing, you may very well be walking into a scam. This news may be a little disheartening for people, especially those who are trying to push their dollar as far as possible or those who simply want to save money so they can use it to pay off other necessities. However, though every car insurance requires a deposit, this doesn’t mean there aren’t a wide variety of insurance providers that are affordable and reliable. The following are a few reasons why “no deposit” car insurance does not exist, along with ways you can acquire cheap yet reliable car insurance.

What is No Deposit Car Insurance and Why Don’t they Exist

No deposit car insurance is exactly what the name suggests: an insurance that you can purchase without having to pay any upfront costs. However, this is a dream that isn’t really in sight anytime soon. No insurance company, big or small, has been found giving no deposit insurance, and there is a very sensible reason for this. Insurance companies, though they help customers in times of accidents, are businesses at the end of the day, and providing no deposit car insurance doesn’t make much sense when looking at things from a business and financial perspective. If an insurance provider were to allow anyone to purchase their insurance without an upfront payment, then the insurance provider would end up tackling the full brunt of the financial risk of the individual being under that policy. And with a no deposit car insurance, if an individual were to get into an accident, the insurance provider would be spending huge amounts of money without any steady way of getting money in return. At the end of the day, these companies would simply run out of money and be forced to file for bankruptcy. And with the “loss” of multiple insurance companies because of a policy like this, consumers would also soon find themselves with very limited options as more companies are forced to shut down.

What about Cheaper Car Insurance?

Now this is a far more likely alternative, and is great for both the consumer as well as for the insurance provider. And although cheaper car insurance is accessible, many individuals think it’s impossible to get the best deal. However, getting inexpensive car insurance isn’t as difficult as some people may think it is, and the following are just a few ways to get started!

Get as Many Quotes as Possible

The first thing that anyone who’s on the search for car insurance should do is get as many quotes as possible. Afterall, knowledge of how much each insurance provider is charging will help you decide on the best provider for your budget. And this doesn’t take that much time either thanks to the numerous quote provider tools readily available online. Also, because there are so many insurance companies out there, many are competing to attract customers who may be on a budget, giving the consumer great savings if time is taken to look for them. Most people however will only look at two or three companies, when in reality, to get the best price people should look at at least six to seven companies.

Discounts are Right There

The first one may be difficult for someone who was originally bent on looking for a no deposit car insurance, but paying upfront for twelve months is probably the best thing you could do for your wallet. Many insurance companies will provide a generous discount of around 15% annually if you pay up front. The reason for this is there is very little risk involved for the car insurance provider, allowing them to be more flexible in terms of charging you.

The second best way to get a modest discount is simply driving safely. Safe drivers, and those who have taken a safety driving course, are generally looked upon as low risk customers, meaning the insurance companies won’t have to worry too much about the potential of you getting into an accident and them having to shell out huge sums of money for the damage caused. Many insurance providers will give a discount upon one year of accident free driving, or longer depending on their policies. Those who take an active safe driving course can save up to ten percent on monthly premiums. So while no one enjoys taking time out to take these courses, your wallet will definitely be in better shape afterwards!

Another big one that goes hand in hand with safe driving, is simply not driving too much. The less time you’re on the road, the less likely you’ll be in an accident, and so if you notice you’re racking up fewer miles than you originally thought, talk to your insurance company to see if you could receive a discount. Also, newer cars with more safety features and anti theft assets also help you appear as less of a risk to insurance companies. Though many newer cars come equipped with the latest security features, older models may be lacking these essentials, making you ineligible for such savings. Though purchasing an anti theft feature can be a little pricey initially, the money you save in the long run could be worth it.

No Deposit Insurance Doesn’t Exist, but There are Low Deposit Plans

Low Deposit Plans are exactly what they sound like: a low upfront costing insurance plan that is great for people who may be getting their first car insurance and need some time to get a bit more cash. The problem with low deposit plans, however, is that the upfront cost is low because of the increased monthly payments. Therefore, you may just end up spending more in the long run; it’s better to simply look for discounts and save up some extra money to afford a larger up front payment that will help lower your monthly payments drastically.
In the end, there are many companies that will gladly offer low deposit plans, but only opt for this as a your last possible option.

Other Problems With Cheaper Insurance

Regardless if the insurance provider requests a lower deposit or if the entire plan itself is cheaper, cheap insurance won’t get you the service and customer service that you may be desperately looking for when tragedy does strike. Many of the cheaper insurance plans could very well leave you with a lot more problems when trying to get in contact with an agent quickly, so be mindful that cheap doesn’t always equate to great.

Final Thoughts

“No deposit” insurance plans simply don’t exist, and if a company is offering you one, you may be walking right into a scam. However, there are lower cost car insurance available, and finding the right one for you takes a bit of research and persistence. But taking time out in finding the right car insurance for you will help save you both time and money later down the road.