Monthly car insurance
Looking for car insurance with no deposit paid upfront, and with monthly repayments? More and more motorists are now buying their motor policies in this way, from sites like www.monthlycarinsurance.biz, as adequate cover becomes less and less affordable. Is this always a good way of getting insured however? Making regular payments rather than playing a single front premium comes with a cost. For a start, there usually interest and/or management charges involved, which would typically add around 10 to 12% on two the base premium. In addition, many insurers refused to accept month-to-month premiums in this way, which means less choice and can often exclude some of the lowest cost policies.
In addition, a lot of drivers find that they are already making too many regular payments, and that their budgeting can become strained if what is usually a fairly substantial extra payment is taken from their account each month.
Whilst no – deposit schemes are advertised regularly on the Internet, the fact is that these are extremely difficult to find. Generally they are limited to customers who have been with an insurance company for at least a year. All others will need to find a deposit before an insurance company will take them on, and this can cost as little as 10% of the premium, although it is more often 20% upwards.
Clearly, it is better to pay in the traditional way with a single premium if possible; unfortunately for many drivers, particularly younger ones, this is simply not an option going to financial constraints.
Those who are still looking for policies of this type often find the best deal in what is now the traditional way; try one or more of the major price comparison engines such as comparethemarket.com, confused.com, prudentplus.com or moneysupermarket.com. Those insurers that do offer deferred payment schemes should let you might you have full details of the cost, which should include the deposit that they will require, the regular premium, the number of payments must be made, and the total cost of buying in this way. You can then make your reasoned decision on whether or not to proceed with the purchase.
There are of course other ways in which the finance can be raised. A popular method has been applying for a no-interest credit card and using that to pay the premium; this would give the advantage that you will be able to pick and choose exactly which policy you want to buy, regardless of whether or not the insurance company involved offered credit or not. The major drawback to this is that very many people fail to pay back the amount they have borrowed in time, and so incur interest charges which can be quite heavy. This is however worth investigating if you really have no other options, such as a low interest bank loan or even a loan from friends or relations! Another way is to simply ring up your existing insurers, explain to them that you would love to renew your policy but that you are somewhat short of ready cash, and ask them if they will accept extended payments. Many of them will, provided that you have been satisfactory customer for at least a full year. This does of course mean that you would be unable to shop around for the lowest premium, but it might at least help to keep you on the road for a further year.