In the UK you can now get no deposit car insurance, this means that you can pay monthly for your car insurance without having to pay a deposit upfront. As the cost of insuring your car rises more people are turning to car insurance no deposit schemes to make the cost of taking out car cover more affordable.
Many insurers in the UK do offer you an option to be able to pay for your insurance on a monthly basis. They will not however allow you to split your premium into 12 equal monthly payments, this is because you are entering into a legal contract that requires you to pay a deposit. This usually means that you will have to pay around 2 months worth of premiums straight away which if you are opting for monthly payments as you do not have the money to pay it all up front does not help you with your situation.
With a no deposit car insurance policy you can pay for your policy in 12 equal monthly payments. You will not have to pay a deposit and so this makes it easier to budget your payments to fit in with your other finances. This can often be the only way that you can afford to insure your car if you are on a low income or you on a tight monthly budget.
Other insurance companies may often charge you more for the privilege of being able to pay monthly. No only will they make you pay a deposit but you may have to pay an additional administration charge to cover the cost of allowing monthly payments. With car insurance where no deposit is needed you will only ever pay for the insurance itself and there will be no extra charges. Additionally with this type of policy if you decide to cancel at any point their will be no cancellation charges.
