Your car insurance is due, but you're skint. What are you going to do? Well the first thing you've already done; you come online to find this excellent website. Now all you need to do is learn how the system works, and then buy yourself some no deposit car insurance.
First of all, let me state that no deposit car insurance simply doesn't exist! Don't panic however, all will be revealed.
It doesn't exist because in order for insurance to work legally, there has to be a contract between the person who buys the insurance and the company that provides it, and for a contract to exist in English law (do bear with me, I know this is boring) there has to be what is called a consideration; in other words you have to put up some money! However, this is not a problem provided that you are the proud possessor of a credit card.
What you do is quite simple; you find a company which is prepared to accept monthly repayments, and which will accept the first payment by credit card! This means that the initial deposit is paid by your credit card company, and you don't have to pay them for about a month, possibly longer. The rest of the payments are made monthly, so no time do you find yourself with a huge outlay to face.
Like every system this has plus and minus characteristics! Insurers are well aware that there are a number of wily customers around who will pay the initial deposit, tax their car and then make no further payments. This is possibly the most dangerous thing to do if you want to stay on the road! For a start off, the licensing authorities will be informed that you are no longer insured, and your local friendly neighbourhood Constabulary will be keeping a careful eye on you, and secondly the insurance companies will not be greatly impressed in the slightest and it is extremely likely that your name will end up on a blacklist which will be circulated to other insurers. When you next try to get a quotation for insurance you may well be unpleasantly surprised at the outcome.
Another drawback is that it costs more. Everyone these days likes to have money in the bank, and insurance companies are no exception. If you are paying monthly it takes all that much longer for them to get hold of your cash so they will often make an extra charge for this. In addition, whilst they have your money in the bank they are investing it in stocks shares securities etc on which they have traditionally made thumping great profits so when you add everything together you start to wonder why on earth they are prepared to offer this type of insurance in the first place! It's simple, and it's down to one word: competition. Insurers companies are in a mad dash to grab as many customers as they possibly can (which is why there are so many special offers floating around the Internet these days) and they want these customers not just for their car insurance but for every other type of insurance as well, hopefully the rest of their days. This latter may well be unlikely, but everyone lives in hope.
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