Can you buy car insurance without paying a deposit in advance? Can you have insurance now and pay later? The answer is partly yes and partly no.
Around 55 percent of British motorists now pay for their car insurance monthly. Every insurance company in the UK however requires some money up front before they will issue a policy. This is because the law requires this. However this can be paid by credit card which means that motorists who really cannot afford to make an initial payment out of their own pockets can still defer the actual payday until their credit card bill is due for payment.
This varies from one insurer to another and would rely to a large extent upon how old you are and how much driving experience you have had. A middle-aged motorist with a good driving record and a long no claims bonus could pay from as little as a 12th of the total premium but a young driver, or one without a great deal of experience, would probably have to find 20 percent or even more.
Yes. Every insurer who allows monthly payments will charge extra for it. As a rule of thumb an extra 11 percent or thereabouts was added to the total amount payable during 2019 to the premiums of those opting for extended payments but this varied from one insurer to another, and from one motorist to another. Generally speaking the better the credit rating of the applicant, the lower the extra charges.
There isn't one. most insurers have particular types of client that they target, which they offer the most competitive prices to. These may be young drivers, sports car owners, mature motorists with long no claims discounts, or even drivers living in certain postcodes. This is why it is always a good idea to compare as many prices as you can.
Yes, a monthly paid policy is exactly the same as a yearly paid one; the only difference is in the method of paying for it.
You can cancel almost any insurance policy at any time. However you will have contracted to pay for the full premium. The insurer may allow a reduction of some of the outstanding balance but this would depend upon their terms and conditions, and they all have different ways of treating cancellations. These will be spelt out in their documentation; this would be made available to you before you bought a policy and it is essential that you read it to find out exactly what you would be liable for.
If you are making your payments monthly and you decide to cancel it is very likely that you would still have to pay a certain lump sum to the insurance company before they would release you from your obligations.
This is just a marketing ploy. Every insurer in Britain will need a payment in advance, even if it is just a small one, before a policy will be issued.
Compare prices on a good price comparison site.
If you compare prices you will see that some insurers will not quote monthly repayments. This does not mean however that they will not be prepared to offer these to you; it is just that they will not do this online. If you see a quotation which you would like to accept but there is no offer of monthly payments, then ring the insurer and talk to the customer services people there. They may well be able to give you an offer that you would find acceptable. They are after all in business to sell car insurance, not to turn away potential customers.