No Deposit Car Insurance

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Why compare no deposit car insurance with MultiQuoteTime?

If you own a car in the UK, you’re legally required to have car insurance.

To save money, are you considering a no-deposit car insurance policy? MultiQuoteTime has partnered with Quotezone.co.uk to help you explore different types of car insurance, including no-deposit options!

The quote comparison tool allows you to compare 120+ leading UK car insurance providers. The results can be easily filtered using intuitive tools, helping you focus on the quotes that best match your individual needs.

Cheap No Deposit Car Insurance Guide

Many UK insurance firms use this term as part of an aggressive advertising scheme to get drivers attention who have limited funds, but still need instant vehicle insurance. While technically the term is factual, but payment is required within just a few days.

Most UK insurance brokers will accept a small or low deposit, followed by 10 monthly payments. Brokers will offer different deals and some call it low deposit car insurance. Spend time getting multiple car insurance quotes to enable easy comparison. Low deposit car insurance is available for all vehicle types, including vans, 4×4 car insurance and motorbikes

If you are able to make regular payments, then you could consider applying for an interest-free credit card and use this to pay your annual insurance premium. Then you will really get car insurance with no deposit, but it is vital that you stick strictly to their repayment terms to avoid charges. Maybe you can set up a direct debit and put the card in a drawer or cut it up.

To find providers, of monthly car insurance do some homework and check a range of providers and include Tesco bank car insurance, Haven car insurance, Hedgehog insurance, Boom and ASDA Car insurance plus others.

Who Provides Low Deposit Car Insurance?

Provider	Get Multiple Quotes and Compare
Haven	Compare Now
Hedgehog	Compare Now
TESCO	Compare Now
Llyods	Compare Now
Gladiator	Compare Now

Difference Between Monthly Premiums Vs Annual Premium

We have highlighted the key distinctions between these two approaches to paying for car insurance below.

Monthly Premiums	Annual Premium
Insurance is spread over either a 12-month or 10-month period, helping to ease the burden of payment	A one off annual payment paid up front at the start of the insurance period.
In most cases except for a few insurance companies you will be charged an additional so-called interest charge over having paid as one lump sum	No additional interest payments, so will work out cheaper than paying monthly unless the provider does not charge interest on monthly payments (few and far between)
Missing a payment could have a negative impact on your credit rating and invalidate your insurance cover

MultieQuoteTime Shares Tips on getting affordable no deposit car insurance in 2025

Getting the best deal on any insurance policy depends on the level of risk you pose. Some factors, such as the car insurance category, are fixed. However, you do have control over others. Below, we have listed some of the key factors to consider. Take time to read and if possible take action to make savings on your car insurance!

Limited Mileage

Limited Mileage: If you use your car infrequently, choosing a policy with limited mileage can help you secure a lower premium from insurers.

Clean driving record

Clean Driving Record: Insurers often reward policyholders with a clean driving history by offering lower rates and better coverage options. Practice safe driving habits and build a good no-claims history.

Compare Mutiple Quotes

Get a range of quotes and do some comparing. Sites like Multi Quote Time UK can help on your path to comparing different insurance providers by simply completing one online form!

Make Security Improvements:

Improve Vehicle Security: New cars are fitted with alarms as standard; if not, get one installed and consider extra steps such as adding an immobilizer or a tracking device. These steps will help lower your risk of theft, and insurance providers will look at this positively when calculating the cost of insurance.

Don’t Over Insure

Don’t Over Insure: For example, if you have a car under 3 years old, breakdown cover will likely be included for the first few years, so there’s no need to include that in your insurance policy.

Avoid Mods

Avoid Modifications: Any modifications made after the vehicle leaves the factory are considered a modification. Some are minor, but all can impact the cost of your insurance premium. It’s best to check first before making any modifications, as some, like mapping your engine, may invalidate your cover.

Legal Cover

Legal Cover: This comes into play to protect you financially should any third party bring you to court to settle any dispute. If this is not already included, it should be considered, as legal fees can often be substantial.

Blackbox

Blackbox: The black box is popular with young drivers who face higher premiums as they fall into a high-risk category. A black box can help reduce your costs if the driving information gathered shows the insurer that you are a safe and careful driver.

Compare Low Cost Car Insurance Options Online

The panel can help you find and compare policies offered by brokers that provide car insurance and no deposit van insurance. Few if any will actually offer no down payment car insurance, but a low deposit option does come close.

How to compare no deposit insurance with MultiQuoteTime

Before you can get multiple quotes and start comparing low-deposit car insurance, As easy as 1, 2, 3!

Car to be insured details

Details about the car, including the make and model, its age, and estimated value. How it will be used—whether for social and pleasure only or for both social and business use. An indication of the expected annual mileage.

Insurance details

The level of coverage required and any additional extras, for example, windscreen cover or no-claims legal protection.

Your driving history and experience

These are details of the lead driver, or if you are after a named driver policy, details of the other elected drivers.

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Low Deposit Car Insurance FAQ’s

What Is No Deposit Car Insurance?

The use of the term “cheap, no-down-payment car insurance” or “instant, very cheap car insurance with no deposit” is just an insurance company’s marketing ploy to increase business. They will, in return, offer monthly car insurance with no upfront payment. In reality, you will still need to pay for the first month before the coverage is activated, but it is a payment scheme that helps spread the cost over a 12-month period. It is not appropriate to call these schemes cheap, as they will likely always work out to be more expensive than if you paid upfront for your coverage.

In summary, this type of cover is aimed at spreading the cost over a period of 12 or 10 months, which avoids having to put down a large deposit at the start of the rental period. The amount of deposit will depend on your driver profile, the vehicle to be insured and the actual car insurance company. As such, it is important to compare options across a range of car insurance providers.

Do I Need to Bring Money When Taking Out A No Deposit Car Insurance Policy?

Technically, no money is transferred to the insurance firm when the policy is taken out. This is how it can be called “no deposit.” With the surrender of the bank account number, the insurance company will set up an automatic withdrawal of the funds to activate the policy.

How Can They Call This Cover No Deposit Car Insurance?

Technically, no money is transferred to the insurance firm when the policy is taken out. This is how it can be called no deposit. With the surrender of the bank account number, the insurance company will set up an automatic withdrawal of the funds to activate the policy.

Is no deposit car Insurance cheaper than a traditional policy?

The amount quoted for coverage will be the total amount before interest. What differentiates this type of policy from standard coverage is how the premium is paid.

▶ No-deposit coverage divides the total cost of the premium by 12. This makes it possible for the first payment to be only 8.33% of the total amount. Each payment after that is also 8.33% of the total premium. Added to the total cost of the premium is a fee. This fee can be a flat £5 per payment or a variable 10% of the total unpaid premium balance. Since the initial payment is small, the remaining balance is higher than what a person would pay under a typical monthly installment plan.

▶ By paying the full premium amount when the policy is taken out, fees and interest charges are avoided, making this the lowest overall cost for an annual premium

What Is The Variable Interest Rate?

The variable interest rate calculates payments that include interest on the total remaining premium balance. With this type of coverage, that amount is 91.67% when the second payment is due. In contrast, a typical car insurance premium has only 80% of the premium left as the balance, on which interest is accrued when the second payment is due.

Due to the outstanding balance, this option is the most expensive annually, but it also has the lowest initial costs. Paying the premium annually remains the lowest-cost option overall.

*51% of consumers could save £515.24 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next six cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from December 2024 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.

Updated: 11 March 2025
Reviewed by Eamonn Turley Insurance Expert