There are certain factors that make zero deposit car insurance attractive, most notably the fact that you do not have to pay a deposit fee. But as with any insurance policy, there are advantages and disadvantages depending on the company you choose, the rates you pay, and the services which are provided.
The reliability of the no deposit plan will depend in large part on the insurance company that you choose. The good news is that many people can qualify for no deposit auto insurance and shop around thanks to major companies such as GEICO and Progressive which offer them. To have a trusted name offering this type of insurance brings peace of mind knowing that it will be there for you.
Benefit of No Deposit Plans
Although it may seem that the lack of a deposit means you pay less money, the real advantage is that it evens out your payment structure. The biggest issue for many people paying their auto insurance each month, especially if the amount is deducted from their bank accounts, is being hit with the extra 10% payment for the deposit. By creating an even payment system from month-to-month, it avoids potential surprises.
It also means that what you are quoted for auto insurance will be the exact amount that will be paid. Quite often, insurance companies do not include the price of the deposit as part of their quote. But with no deposit auto insurance, you know what you need to pay right away. This is a great solution for those who like to know everything up front.
Issues with No Deposit
You may notice that the monthly rates for your supposedly cheap start up car insurance were not as low as you might have thought. It is true that in most cases no deposit insurance is somewhat more expensive month-to-month compared to policies that have a deposit. However, this does vary from company to company, so keep that in mind when shopping around.
No deposit car insurance is not for everyone, and not all can qualify. There are usually some restrictions such as for those who have a good credit rating or have been with a car insurance company for a while and not missed a payment.
In addition, you’ll have to watch out for companies that charge hidden or surprise fees. In many cases, the fees will be small, but they can add up over time which means that you might be paying more for the car insurance.
Why You Should Consider No Deposit
Overall, not paying a deposit for your auto insurance works for you assuming you get the best rates. Also, keep in mind that many insurance companies do not advertise such policies, so you should ask to find out more information.
In the end, getting instant car insurance with no deposit does offer advantages that outweigh the negatives if you find the right price for the policy. When you select a trustworthy, reliable insurance company, a no deposit policy offers peace of mind and a stable payment platform.