To cut a long story short, no, there is no such thing as no deposit car insurance if you are taking out a new policy. It is essential to pay for a car insurance policy, because this payment forms the basis of the contract.
For Pay As You Go insurance the insurer will install a telematics tracking device (or “black box”), which is about the size of a smart phone, into your vehicle. This comes at a cost, so why choose to do this?
Pay as you go insurance for drivers with low mileage
New drivers are inexperienced and have zero No Claims Bonus, both of which make their policies more expensive. Also many new drivers are young drivers or students, which again adds to premiums whilst incomes tend to be much lower than average.
The competitive nature of the car insurance industry means low deposit car insurance has become a widely available option for drivers to take advantage of, but what is it?
Have you ever been the passenger in a vehicle and been subjected to dangerous driving by the person behind the wheel? Research has shown this scenario may be more common than you think, particularly among younger generations.
Yahoo! News reports:
Imagine this, you’re 17 and have the option to get behind the wheel, but the cost of driving lessons, a new car and of course insurance proves too much to fund from that part time job of yours.
Young drivers may find their insurance premiums are high, especially if they are male.
This is because many providers believe this type of motorist is more likely to be involved in an accident than other road users.