Monthly car insurance is sometimes also called low or no deposit car insurance. It will usually cost more over the course of a full year than an equivalent standard policy, but for those with low income, twelve larger payments can be easier to manage than finding enough money at one time for the deposit.
This form of car insurance requires a lower deposit than normal and instead has slightly higher monthly payments. Users of these policies will usually pay more than they would on standard car insurance.
No deposit car insurance is similar but spreads the entirety of the deposit cost across the regular monthly payments. The total cost can be higher than low deposit policies.
Monthly car insurance policies can be very useful for low-income drivers to ensure you have the cover you need.
When looking for car insurance on a budget, options like monthly car insurance and black box insurance allow drivers to secure equivalent coverage in more affordable ways. Assuming you can’t switch your car to one which would be cheaper to insure, the only other option would be to review your cover needs and ask yourself if you’re willing to reduce your cover.
This makes no deposit car insurance, like black box/telematics insurance, a useful tool to maintain or increase your cover when you can’t afford a substantial deposit.
Whichever way you choose to go, there is an extra step in arranging your monthly insurance that can help you to secure the cover you need for a price you’re comfortable paying; comparison.
Online comparison portals can make this process much faster. They allow you to collect a selection of quotes tailored to your car and your personal driving history much more quickly than alternative methods.
This allows you more time to review them and to be confident you’ve made the right selection from the choices available to you.
The yearly ritual of renewing your car insurance is quickest when you simply accept your current provider’s offer. However, often, that first offer won’t suit your needs and finances as well as others. Taking that extra time can pay off in real terms throughout the next year. So why wouldn’t you?