A no-deposit insurance policy allows you to make a cover for your car without paying anything upfront. However, in the United Kingdom, this car insurance policy doesn’t work.
There are no insurance company that allow you to get an insurance cover for your car without paying upfront.
It is just an advertisement trick to lure potential customers to an insurance company. When you are done registering with the company, you will then be asked to make a part payment or a down payment.
Why do I have to pay a down payment for car insurance?
It is important to pay a down payment for car insurance because the money aid serves as a percentage of the first month’s insurance coverage. It is used to start the insurance cover for your car.
In addition, it shows that the payment methods inserted in your application work and that you are serious about getting a cover for your car.
Sometimes, the down payment for car insurance can be equivalent to the first month’s payment of your insurance coverage. If that is the case, the down payment would serve as the insurance cover for the month.
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Cheapest No Deposit Car Insurance
The cheapest no-deposit car insurance are:
1. State Farm
State Farm is the cheapest car insurance company. It offers an annual rate of $600. This means that you get a monthly car insurance fee of $50.
2. Geico
Geico offers the second cheapest insurance rates. With Geico, you get to pay an annual insurance fee rate of $726. By calculation, you get to pay a monthly premium of $60.
3. USAA
USAA insurance company allows you to pay a monthly car insurance fee of $100 and an annual fee of $1,207.
4. Progressive
Progressive insurance helps you pay a standard car insurance rate that is affordable. With Progressive insurance, you get to pay a monthly fee of $169.
5. Allstate
Allstate Insurance helps customers with affordable rates. With Allstate insurance, you pay a monthly premium of $217 and an annual rate of $2607.
FAQ
Can non-residents get car insurance in the UK?
Yes. People who are not residents of the UK can get and are encouraged to get cars insured in the UK. If you are caught without having proper insurance coverage, your car may be impounded. So, it is advised that non-resident who plan on driving in the UK should get their insurance.
Can you be refused car insurance for bad credit UK?
If you have a bad credit score, you can be refused to be granted insurance by many insurance companies. However, you don’t expect all insurance companies to reject your application. You would still find some insurance companies that are willing to provide cover for your car even with a bad credit score.
Can you insure a car you don’t own UK?
Yes. If you plan on driving a car you don’t know on UK roads, then it is advised that you carry out insurance coverage on that car. You could be penalized for not getting insurance for your car whether you own the car or not.
What documents do I need to get car insurance in the UK?
To get your car insurance in the UK, you need information such as your full name, date of birth, address, email address, occupation, car registration number, and driving license.
Conclusion
As highlighted in this post, a no-deposit car insurance policy is just an advertisement trick by the insurance company to lure potential customers. In the end, you would be asked to pay either a down payment or a percentage of the first-month premium.
