Going to college means having to pay a lot of expenses and one of them is your car insurance. There are many ways to save money in this regard, but one of the more interesting is no deposit car insurance.
What is No Deposit Car Insurance?
No deposit means that you do not have to put up a deposit to pay monthly for your car insurance. Car insurance is sold in six-month blocks, and when you pay monthly, you must put up a deposit to cover the next month. This is to protect the insurance company, so they receive at least one more payment if you decide to pay no longer.
No deposit means that the insurance company will not charge the extra 10% and tack it on to your first monthly payment. This means that you pay the same amount every month and not have to pay any deposit charges.
How to Get No Deposit Insurance?
There are different methods for obtaining no deposit insurance, but the one that is available to everyone is that you pay the full amount from the start. Because the insurance is fully paid for, there is no deposit needed. If you cannot pay for all the insurance up front, then there are other means to get this form of coverage.
Excellent Credit Rating: Just like getting lower interest rates on loan, you can also get no to low deposit needed for your car insurance if you have a solid credit rating. Admittedly, it can be difficult for many college students because they have yet to build up a good credit history. However, if you start early and use credit smartly, it can translate into getting no deposit for your car insurance.
Good Relationship with Insurance Company: If you have been with your insurance company for over a year and have made all your payments, talk to your agent about lowering your deposit. You may find that they are willing to reduce, if not eliminate the deposit because they want to keep you as a customer. The longer you have been with an insurance company, the easier this will be to accomplish.
How to Save Money on Premiums?
In addition to no deposit, there are other ways you can save money on your car insurance. In fact, college students have several options at their disposal, including the following;
- Good Student Discount
- Good Driver Discount
- Raising Your Deductible
- Taking a Safe Driving Course
- Driving Fewer Miles
Good students get into fewer car accidents which mean lower rates. Plus, you can combine your discounts to save even more money. For example, if you rarely drive your car once you on campus, you can save more money through low mileage discounts.
Affordable car insurance for college students is possible if you look for the different ways that you can save money. Going with a no deposit insurance is one of the several methods that can save you money in the long run.