Low Deposit Car Insurance
Not all insurance companies entertain monthly direct debit facility, but there are some who do offer a low deposit car insurance scheme that you can avail if you find the total annual premium for your car insurance too much to pay all at once. In fact, many of our customers eventually settle for a low deposit car insurance by paying a small percentage of the total premium upfront and finalizing a payment period ranging anywhere between three to twelve months.
Depending on your ability to make an upfront payment, One Sure can offer you a wide variety of car insurance choices from the top underwriters in the country. Usually, many of these low deposit schemes come with free covers such as breakdown cover, free claims processing and much more. It depends on the insurance company and what you are willing to pay as a first deposit. Remember, that the initial deposit is calculated as a percentage of your total annual premium. To avail a low deposit car insurance, you need to pay the initial deposit and allow direct debit on your card or bank account.
What Should You Remember?
Low deposit monthly payment car insurance sounds great; it lets you choose a comprehensive car insurance without having to pay a lot of money all at once. However, there are certain caveats we want you to know before you make this decision.
First and foremost, the total premium you pay towards your car insurance under the low deposit car insurance scheme will always be higher compared to a one-time annual premium. Whether you pay an initial deposit or opt for a no-deposit monthly insurance plan, you will pay on average anywhere from 13% to 33% interest on top of the premium for a year’s worth of car insurance.
Second, the higher your initial deposit, the lower your monthly premium will be. Here at One Sure Insurance, we always advise our customers to spend the maximum on the original deposit and reduce the payment value of their monthly instalments, which helps to reduce the total interest and brings down the cost of your car insurance. We offer both a deposit with 9 monthly instalments, or a deposit and 10 instalments.
Third, several factors determine just how much interest is charged on your monthly premiums. Not only is it different for each underwriter but also inclusive of the information you provide us. The interest you pay may take into account your credit status. It's important to note that One Sure Insurance does not administer the finance for low deposit car insurance when monthly instalments are used.
Is It Possible To Get Car Insurance With No Deposit?
Unfortunately not. Almost all car insurance underwriters will require at least some form of deposit on both comprehensive and third-party car insurance policies.
It's important to remember that car insurance is effectively a contract between you and the underwriter, and you're ultimately committing to 12-months worth of insurance. Because our finance partners are effectively loaning you the money, and asking for repayments over several months, they want to see commitment on your end in terms of a deposit.
Some of our finance partners will accept a small deposit, while spreading the rest of 10 monthly payments.
It's important to talk to us and ask us what finance options we have available.
Factors Influencing Your Low Deposit Car Insurance Premiums
- The Initial Deposit – Obviously, the more deposit you give, the less you pay as monthly premium and interest.
- Payment Period – The number of months you pay determines the interest rate and total premium cost. Lower the months, less is the rate of interest, but higher is the monthly premium. On the contrary, more the number of months, higher is the rate of interest and total interest, but you incur a lower monthly premium.
- The Excess – Every insurance company lets you decide on the amount of excess you wish to cover on your own. As with any insurance policy, the higher is your excess, the lower is your insurance premium. The trick is to finely balance the excess with your premiums, such that neither is a burden. Our insurance advisors can help you determine the ideal balance, so you need not feel underinsured nor pay a higher premium.
- Additional Covers – Not only is the kind of car insurance indicative of your total premium but also the other covers you may purchase. Each additional cover will add a certain amount to your monthly premium and increase the total interest you pay. Also, remember that a third party only car insurance will cost significantly less than a comprehensive cover.
- No Claim Bonus History – If you have accumulated no claim bonus, your premium will be less. However, do remember to inform us if you have any no claim bonus on your name.
- History of All Named Drivers – You can add multiple names to your car insurance, which increases the total cost of the insurance. Moreover, each driver’s history plays a part in determining just how much you have to pay. Remember to inform us if you or any of the named drivers in your car insurance has a prior claim or conviction. This will inevitably increase your premium, but failure to do so can result in the immediate termination of your car insurance or lack of continued coverage.
Here at One Sure Insurance, we advise paying premiums on an annual basis with a higher excess to bring down the cost of a comprehensive car insurance. However, if you choose to opt for a low deposit car insurance, we can arrange the best possible plan inclusive of your needs. From helping you pick the right insurer, to setting a healthy balance between the excess and premium, our team of expert advisors is here for you.