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Running a car incurs lots of expenses you could do without: high petrol prices, road tax, MOTs and insurance premiums.
There might not be much you can do about the first three without changing car, but at least with insurance you can shop around.
The cheapest way to pay for a policy is to fork out the full amount for the year upfront, but if you don't have that amount available it simply isn't an option. That's where paying monthly comes into play...
Paying monthly will spread the cost over the year instead, which can feel more manageable and make it easier to plan your budget. However, this makes the policy more expensive overall due to interest and admin fees that push up the total amount you pay over the course of the year.
On top of that, most insurers ask you to pay a deposit on top of your first payment, which can be around 20% of the total value of your policy. This won't help if you're looking to avoid high initial costs, especially if you have to pay a lot for your insurance already!
But car insurance with no deposit to pay does exist; some insurers offer their deals with equal monthly payments throughout the entire policy term.
Although being able to pay the full amount immediately will usually get you cheaper car insurance, no deposit pay monthly deals might be your best bet if paying upfront isn't an option.
If you can't find sufficiently cheap car insurance with no deposit, there is an alternative way around it. You could pay the full premium upfront with a 0% purchase credit card and then clear the balance in equal instalments over the year. As long as you make sure you pay off enough each month, you'll have cleared the cost of your insurance by the time you get to your renewal date.
Every bit as important as choosing how and when you pay is making sure that the cover you choose is right for you and your car. If you're looking to avoid spending too much, there are always other ways of saving money...
Vehicles are classified into groups determined by their price, emissions, safety and engine power; as well as how much repairs might cost. If you're looking for a new car, consider one in a lower group, as this will offer cheaper insurance premiums.
Penalty points on your licence and claiming on your insurance for any accidents that are you fault will push up your premiums, so try to avoid these by driving safely.
Being on the road less will lower the amount you need to pay for insurance. Try to figure out a realistic distance you'll drive in a year when your insurance company ask - go with much more than you're likely to need and you will end up paying extra, go with much less and you may jeopardise your cover.
Installing features that put off thieves - like alarms, immobilisers and steering locks - will make it less likely you'll need to claim, as will keeping your car on a driveway or in a garage. Make sure you relate this to your insurer to force down your premiums.
Adding extra options like windscreen cover, legal protection, a courtesy car or breakdown cover to your policy might be cheaper than getting them separately. You can also look into the discounts available if you buy online, bundle more than one car into the policy and have a valid no claims bonus; however, getting the cover is paramount.
Make sure you choose a policy that provides a sufficient level of cover before you start looking for low prices, as you don't want to be stuck with a policy that won't pay out if you claim. First find several policies that have the features you need using our car insurance low deposit comparison.
When you have gathered a few suitable low deposit car insurance quotes, you can simply check the costs for each and go with the cheapest one.
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