These days almost everyone needs a car to be able to get around effectively. Unfortunately public transport is not frequent or reliable enough and does not cover every area of a town or city. With the distances needed to be covered by most people the only feasible alternative is to use a car.
The cost of car insurance in the UK is steadily climbing as many as one in ten drivers choose to drive with no insurance at all making it more expensive for the rest of us. If you happen to be a young driver under 25 or a new driver who has just passed their test and has not accrued any no claims bonus then your premiums are likely to be sky high.
With many of us finding our finances stretched having to pay out several hundred pounds all at once to pay for our car insurance every year can find it difficult. It would be much easier and much more affordable if you could pay your insurance premiums monthly. Some insurers do offer this option but then ask for a large deposit up front and charge us interest for the privilege.
Being a competitive market some car insurers have decided to offer no deposit car insurance where you can pay monthly. This means that you pay 12 equal amounts over the year rather than paying your premiums in one lump sum.
No deposit car insurance offers the same type of cover as any other type of policy. The cost of your monthly premiums will vary depending on your circumstances as it would with a yearly premium charge. So if you have accrued more years of no claims then the cost to you will be lower than someone who has not as many years of claim free driving.
