What is low deposit car insurance?Mon, 10/10/2016
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?
Low Deposit Car insurance explained
Low deposit car insurance gives you the flexibility to pay the cost of car insurance over a 3 or 9-month period, making it a much more affordable option than if you were to pay the whole policy in one transaction. The term ‘low deposit’ refers to the first payment you make on your car insurance policy. If you pay the full price upfront with an annual policy, this ‘deposit’ won’t exist.
You pay a little more in interest and admin fees by choosing to pay a low deposit plus monthly instalments, but if your premium is high or purse strings are tight, it will enable you to get behind the wheel without emptying the bank or extending your overdraft. Effectively, low deposit car insurance is a loan from your insurance provider and that low deposit payment ensures you’re covered straight away.
For more information on how low deposit car insurance can work for you, visit our low deposit insurance knowledge base article.