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You are looking for 'no deposit car insurance' but there is no such thing. This is because in law a car insurance policy represents a legally binding contract between you and the insurance company, and it cannot come into effect until something is paid to the company. The way they get around this is as follows:

The basic premium is calculated, and then split into 12 equal monthly payments. You would be expected to pay the first one by credit card; in this way you would not have to lay out any money immediately because the payment would not become due from your credit card company for a month at least. The remainder of the payments would be made either by credit card or direct debit.

Insurance companies would much prefer to have your premium in full, in advance but the fact is that so many people simply cannot afford this any longer, so if they are to get the business from these people it means that they have to offer easier ways of paying. However, some of them charge extra for this, and in some cases the extra charge can be considerable which is the reason why you really need to use a dedicated 'no deposit' car insurance price comparison site, which will work out for you not only the cheapest basic premium, but also the cheapest monthly payments, which is the most important figure to you.

It is very important to bear in mind that when buying insurance, like everything else, the cheapest is not always the biggest bargain. Ways that insurance companies can sometimes reduce their premiums include charging a higher excess (in other words, you have to pay out more money out of your own pocket towards any claim that you make) higher cancellation charges and, sometimes, the cheaper companies may be a little more difficult to claim from in the event of an accident so sometimes it is better to go with a well-known company with a reputation to protect rather than a cheap alternative company that you've never heard of.

I know you won't to do this but it is so important that I will spell it out; please please be absolutely truthful when you fill in a proposal form, and do not add a year or two to your age if you are a young driver, or 'forget' about the accident or conviction that you had a couple of years ago. Some insurance companies are very good at taking money from people and then only checking up on their status when a claim comes in; if they find that someone has been less than accurate when filling in the proposal form they have every excuse in the world to refuse the claim, and usually that is exactly what they do. Please remember that every claim, every reported accident, every motoring conviction in the most obscure court in Britain is recorded on central databases which the insurance companies check up on before paying out on claims.

Finally, a substantial minority of people who agree to make monthly payments to an insurance company fail to complete their side of the bargain. This is not a good idea. Insurance companies keep records of people who do this, and these records are shared amongst them. Also, nearly every such policy provides for cancellation charges and these can be quite heavy; insurers can, and do, chase after defaulters for cancellation payments very persistently. If you only need car insurance for a short time you would be far better off taking out a short term policy, or a month to month one; the first one can last from just a single day right through to 28 days, the month-to-month policy has a minimum length of just one calendar month, with a maximum of eight months (although it should be borne in mind that a conventional twelve-month policy would probably be cheaper if you need a cover for this length of time).

'No deposit' car insurance policies are therefore available, some of them are extremely competitive but you need to use a specialist price comparison site in order to find the best deal.

 

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