All You Need to Know About No Deposit Car Insurance
The world of car insurance has changed over the years. Insurance companies once held what amounted to mini monopolies on the markets and the notion of customer satisfaction didn’t really figure too highly on the list of priorities.
Once upon a time in the UK, when your policy became due for renewal, you simply accepted the new quote offered by your insurance company. You already understood the extent of your cover, probably because you had been with this same company for years, built up your no claims discount with them, had no inkling of the notion of online car insurance comparison and had no real reason to compare quotes with any other company.
Another interesting but often forgotten factor was that you had no motivation to do so. Insurance was after all, relatively cheap.
Simply paying the premium when it became due was for many people quite a straightforward matter. Occasionally it was dealt with in monthly instalments, a sum of interest tacked on and by and large, so long as you didn’t own a Ferrari, it wasn’t a subject to make too much fuss about.
Sadly, those days are gone. The cost of your insurance premiums can now easily outweigh the cost of your council tax and it is seldom a welcome expense. In fact it is usually quite a significant and crippling one, thus it has become a fact of life that online car insurance comparison sites are a necessity in seeking value and economy and that car insurance has now entered the world of finance. Your premiums seldom represent sums you have lying around in spare cash.
Another often-unpalatable fact is that in order to secure credit deals in order to finance a typical annual policy, you need to raise and provide a deposit and that deposit can often equal the historic cost of an entire year’s premium.
That’s a harsh fact of life because given the soaring cost of other household liabilities, not everybody has the means to raise that kind of cash quickly.
The insurance companies, as you can imagine, have been forced to respond. Insurance is after all a mandatory requirement and it is incumbent upon them to solve problems like client cash flow if they wish to compete in what is now a highly volatile market.
And so enters the new concept of no deposit car insurance. Simple enough concept, you get to pay ‘over the hurdles’ but you needn’t be faced with the difficulty of raising a sizeable cash deposit. New credit legislation has made this possible and no deposit car insurance is becoming more and more of a necessity for some consumers. The good thing is that online car insurance comparison sites are and will continue to have a positive effect on prices based on simple principles of supply and demand.
As things stand, no deposit car insurance tends to have the ‘no deposit’ part reflected in interest rates and cancellation penalties, although not quite so adversely as you might think. The bottom line as always is to shop around. No deposit car insurance may well make a huge difference in helping you to manage your household expenses.