No Deposit Car Insurance
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Why Compare Cheap No Deposit Car Insurance With SimplyQuote?
Finding any kind of car insurance can be a real hassle. There are so many different insurance companies with great reviews, and each offers a range of insurance products. It’s easy to feel like you’re drowning!
SimplyQuote takes the stress out of the insurance-finding process by allowing you to compare insurance quotes from leading companies in the UK. The online comparison tool is free to use, and you’ll receive no-obligation quotes. It couldn’t be simpler!
What Do You Need To Get A Quote?
To get a car insurance quote from SimplyQuote, you need to provide us with:
- Your personal details
- UK address
- Insurance cover you’re interested in
- Vehicle details
- Claims history
Why Should You Get No Deposit Car Insurance?
First things first – there’s no such thing as no deposit car insurance.
It is actually a marketing ploy used by insurance companies where you pay for insurance in monthly payments – you will always have to pay something before you are insured.
But here’s the kicker – instead of paying the deposit up front, the deposit amount (usually around 20% of the annual policy price) is spread across monthly instalments.
A no deposit policy is a good option for people who can’t afford the annual lump sum and wish to spread the cost over the course of the year.
But note that your first payment is due before your cover kicks in, as you can’t drive without a policy in place.
What Does No Deposit Car Insurance Cover?
As it is the same as standard car insurance, no deposit policies cover the same as any other car insurance policy.
Of course, policies differ based on your level of cover (discussed below) and the type of insurance you get, but the following is usually covered:
- Financial losses should your car be damaged or stolen.
- Damage or injury to third parties and their property.
- Legal expenses should someone file a claim against you.
- Medical expenses if you’re injured in an accident.
What’s not covered?
The following incidents are typically not covered by any car insurance policy:
- Normal wear and tear.
- Negligence (e.g. leaving your keys in the ignition and the car gets stolen).
- Driving under the influence and causing an accident.
- Unnamed drivers.
- Personal belongings in the vehicle.
- Passengers’ medical expenses.
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What Are The Types Of No Deposit Car Insurance?
No deposit car insurance policies offer the same types of car insurance as policies where you have to pay an upfront deposit.
The different types of car insurance include:
- Electric car insurance – Covers the unique risks faced by electric vehicle owners, like replacing damaged charging equipment.
- Convicted driver insurance – Insurance for those with a criminal background (these insurance premiums tend to be very high).
- Van insurance – For people who own and drive vans for private use.
- Business use car insurance – If you use your personal car to drive to work locations.
- Commercial car insurance – For people who use their vehicles as part of their job, e.g. delivery drivers.
- Fleet insurance – For business owners or families who have five or more vehicles that they wish to insure under a single policy.
- Multi-car insurance – For those who wish to insure less than five cars under the same policy.
- Black box insurance – A black box/telematics device is installed in your vehicle and tracks your driving habits. The safer your driving behaviour, the lower your premiums will be.
- Taxi insurance – Specifically tailored to private hire and public hire taxis.
- Motorbike insurance – For riders of motorbikes or scooters.
- Classic car insurance – Tailored specifically to the unique risks faced by classic or antique cars.
- Modified car insurance – Covers any modifications made to cars, including engine modifications.
What Levels Of Cover Can You Get?
There are three levels of car insurance cover that you can get in the UK:
- Third-party only – This cover is the minimum legal requirement to drive on public roads in the UK. It will protect you financially if you injure a third party or cause damage to their vehicle or property. Your car damages will not be covered.
- Third-party, fire and theft – Similar to third-party only cover, but you’re also covered if your car is damaged by fire or stolen.
- Comprehensive cover – Each policy is different, but usually it covers everything in a third-party, fire and theft policy, as well as repairing damage to your car, legal expenses and breakdown cover.
Which Add-Ons Are Available For No Deposit Car Insurance Policies?
Here are some add-ons you can get for your no deposit car insurance policy:
Breakdown cover
If you have third-party only or third-party, fire and theft cover, you can get breakdown cover added to your policy. This includes roadside assistance or towing your vehicle to a mechanic.
Misfuelling cover
If you fill up with the wrong fuel type, this cover will pay for any repairs (and it might also compensate for the wasted fuel).
Key replacement cover
Replaces or repairs lost, stolen or damaged keys.
Legal expenses cover
Offers you financial protection if you’re involved in a legal battle due to a motor accident.
Car seat cover
Replaces a child seat after you were involved in an accident, even if there’s no damage to the seat.
No-claims discount protection
Ensures you don’t lose your no-claims discount, which can lead to lower car insurance premiums in the future.
EU cover
Protects you and your vehicle if you drive outside UK borders.
Personal accident cover
Should you be injured and unable to work or disabled following an accident, this cover will compensate you financially for lost income.
Windscreen cover
Pays to repair or replace damaged windscreens.
Courtesy car cover
Financially compensates you for a rental car, or your insurance provider will provide a loan car while your own vehicle is being fixed.
*51% of consumers could save £529.95 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next five cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from February 2024 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.
How Much Does No Deposit Car Insurance Cost?
With no deposit car insurance, you don’t pay an upfront deposit; however, the deposit amount (usually 20% of the annual price) is spread across 12 months.
So, the cost of no deposit car insurance depends on your annual premium.
The average price of car insurance in the UK is between £450 and £560 per year, which means your deposit would be £90 – £112, split over 12 monthly payments.
Working with those numbers, and including about 30.86% ARP on monthly instalments (the country’s average), you can expect to pay a minimum of £50 per month. However, this is for the most basic cover, and a more realistic amount is about £75 per month.
Which factors influence the cost?
Car insurance providers consider the following factors when calculating the cost of your insurance:
- Vehicle make, model and age
- Annual mileage
- Where you live
- Driver’s age (younger drivers pay more)
- Driving history and experience
- Claims history
- Modifications to the vehicle
- Your occupation
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How Can You Get Cheaper No Deposit Car Insurance Rates?
If you’re looking for cheaper car insurance, you can do any of the following:
- Pay annually – By settling the entire lump sum upfront, you won’t be stuck paying the interest on monthly car insurance payments.
- Shop around – Use SimplyQuote to compare car insurance quotes to find a low-deposit car insurance policy.
- Stay up to date with monthly payments – To avoid penalties and fines.
- Use an interest-free credit card – If you’re going to pay with a credit card.
- Only get what you need – Don’t add on any extra cover that you won’t use.
- Add an experienced named driver – This is especially useful for young drivers or those with very little driving experience.
- Install a telematics device – It will send your driving data to your insurer. If you drive responsibly, you’ll have lower premiums.
- Enhance security – By improving the security features of your vehicle (dashcam, immobiliser) and where you park (locked gate, garage), you will enjoy reduced premiums.
How To Compare Car Insurance Quotes With SimplyQuote?
Comparing car insurance quotes is as simple as 1-2-3-4!
- Tell us about yourself, including your personal and vehicle details.
- Select your policy and any add-ons you want.
- Receive and compare quotes from leading insurance providers.
- Save money by finding affordable deals today!
Frequently Asked Questions
There is no such thing as no deposit car insurance. Any insurance provider will always require you to pay upfront (otherwise you’re getting free cover!). A no deposit policy simply means that the deposit amount is spread over 12 monthly instalments. You are still required to pay your first monthly payment upfront – the first payment just won’t be more than the next 11.
You usually pay a 20% deposit on your annual premium. So, for example, if your policy costs £600 per annum, your deposit is £120.
If you opt to pay monthly, your insurer will do a hard credit check to make sure you can pay the monthly instalments.
Those with a high credit score are more likely to be approved by insurance providers. If you have a low credit score, you can still be approved by your insurer, but you’ll have to pay a lot of interest on your monthly payments.
Yes, but only if your insurance provider accepts credit cards.
If they do, you can defer the initial deposit, as you would with a no deposit policy, and spread it over the next year. Consider getting a 0% or interest-free credit card if you wish to go this route, and make sure you have a good credit rating.
When you pay car insurance annually, you settle the total sum once-off, and you don’t pay interest.
If you pay monthly, your first payment will include your deposit as well as the first instalment and interest. The second payment and onwards will be less than the first as you only have to pay the instalment with interest.
And, if you opt for a no deposit policy, all future payments will be the same amount as the deposit is spread evenly across the instalments.