There is a type of car insurance where you can pay in monthly instalments and it does not require you to pay a deposit. A no deposit monthly car insurance policy allows you to spread the cost of you car insurance over the year rather than having to pay for it all up front.
No deposit car insurance is just the same as any other regular annual policy, the only difference is that you pay equal monthly payments and there is no deposit to pay up front. You get the same level of cover as a standard policy but it is just easier to afford as you can budget monthly for the payments rather than having to find what can be a large sum to pay out all at once. Paying for your car insurance this ways means that people on a tight budget that cannot usually afford to get insured can now do so with easy payments.
If you live on a tight monthly budget it can be difficult to cover the cost of those larger expenses. Most of us cannot rely on public transport and so have to run a car and one of the biggest one off expenses in running a car is getting it insured.
Some people may have bought car insurance from their insurer and used their monthly payment option. However this is not a truly monthly payment option as it requires you to pay a lump sum up front for the deposit. You may even end up paying an additional administration fee and even be charged a monthly interest rate for the privilege of being able to spread the payment across the year.
The only true monthly car insurance policy is the no deposit monthly pay as you go policy. This policy also has the benefit of having no cancellation fee if you needed to stop the policy at any point. You could if you wanted just take out this type of insurance for 1 month.
