Compare no deposit car insurance quotes


Comparing car insurance means you can be confident about getting a policy that suits your needs as well as your budget.

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  • What is no deposit car insurance?
  • How is car insurance calculated?
  • What’s the average deposit?
  • Low deposit car insurance with bad credit

Jump to section

  • What is no deposit car insurance?
  • How is car insurance calculated?
  • What’s the average deposit?
  • Low deposit car insurance with bad credit

Cheap car insurance with no deposit

If you want to save money on insurance, no deposit car insurance can seem a good way to get a great deal. But what does it mean, and will it really save you money? Find out with

You can search for great value car cover from a range of leading UK insurers. Searching for quotes is quick and easy and you can do it all from the comfort of home. 


No Deposit Car Insurance FAQs

What is no deposit car insurance?

No deposit car insurance simply means paying for your policy in monthly instalments instead of one lump sum. In truth, the term ‘no deposit’ is a bit of a misnomer because you still need to pay for part of the policy before cover can start.


If you decide to pay for your car insurance in monthly instalments, the insurer will usually ask you to pay a percentage of your premium upfront. The remainder will then be split across the length of the policy.


Can I get no deposit car insurance in the UK?

No deposit car insurance technically doesn’t exist because you still have to pay an amount before cover can start. 


Policies that are called ‘no deposit’ simply allow you to spread the cost and are readily available from most insurers. 


Why do I have to pay a month in advance for no deposit car insurance?

In almost all cases, you need to pay for insurance before cover can start. 

If insurers didn’t take an initial payment, they would essentially be covering you for free until the payment was made. If you made a claim in that time, the insurer would be compensating you even though you hadn’t made any contribution to the cost of your cover. In the long term this wouldn’t be a feasible business model and insurers could end up paying out vast sums without having collected any premiums.


How is car insurance calculated?

Insurers consider a number of factors to work out the cost of your premium, for example:

  • The type of car you drive – powerful, expensive cars in high insurance groups generally cost more to insure.
  • Where you live – busy towns and cities or areas with higher than average crime rates can increase premiums.
  • Your age – younger drivers are statistically more likely to be involved in an accident so if you’re under 25 you’re likely to pay a lot more compared to other age groups.
  • Your driving record – premiums can be significantly more than the average if you have points on your licence.
  • Your claims history – a recent claim can increase the cost of cover. 

Insurers need this information to work out what the chances are of a claim being made. It’s crucial to be as upfront as you can, if not, you run the risk of invalidating your policy which means your insurer can refuse to pay out. 


What is the average deposit for car insurance?

If you decide to pay in monthly instalments, you can expect to pay anything between 10% to 30% of your total premium as your first payment. 

It’s a good idea to check the overall cost of the policy as headline offers can be a little confusing. For instance, policies with a low initial payment look like a great deal, but this could mean future monthly payments are more expensive compared to policies with a higher upfront payment. In other words, higher initial payments reduce the total amount you need to pay. That means lower monthly instalments and lower interest rates – so you pay less overall. 


Can I get low deposit car insurance with bad credit?

Paying in monthly instalments, means entering a credit agreement with your insurer. If your credit rating isn’t great, you can expect to be charged higher interest rates because there’s an increased risk of defaulting (missing payments). 

It’s also worth bearing in mind that choosing to pay for your policy in instalments will mean the insurer has to run a hard credit check against your name. This will show up when you apply for credit elsewhere. 

Applying for lots of credit can be a red flag for many firms and could mean you get less favourable interest rates in the long run. 


How to get very cheap car insurance with no deposit

In reality, the cheapest way to get car insurance, is to pay for the whole policy upfront. It’s a lot of money but it means you avoid monthly interest fees. 

If you do need to pay by monthly instalments, you’ll get the best value by keeping up to date with payments. If you’re using a credit card to cover costs, you should aim to pay off each month in full to avoid paying even more interest. Alternatively, using a 0% interest credit card for payments can help minimise extra expense.


Are there any other ways to get cheap car insurance?

Car insurance is something you must have by law so there’s no getting away from it. If you want to keep costs as low as possible, here are some ideas to consider:


  • Increase your voluntary excess – this can lower your overall premium. Remember that you need to pay your excess before a claim can go ahead so check it’s affordable.
  • Increase security – secure cars attract the best premiums. If you don’t have access to a lockable garage or private driveway, investing in an immobiliser is a good alternative. 
  • Limit your mileage – driving fewer miles means you’re less likely to be involved in an accident which can help lower your premium
  • Choose a black box policy – also known as telematics insurance, these policies monitor your driving. If you drive consistently well, you could see premiums fall faster compared to non-telematics policies. 
  • Become a named driver – adding yourself as a named driver on someone else’s policy can help reduce costs, especially if the main driver is experienced. Be careful not to add yourself as a named driver if you’re really the main driver in order to get cheap cover. This is known as fronting and is against the law. 

What information do I need for a car insurance quote?

When you search for quotes, you’ll need to supply a few details about yourself and your car, including:


  • The make and model of your car.
  • The date your car was registered.
  • Your age and job title.
  • Your address including details of where you keep your car overnight.
  • How you use your car, for example if you commute to work or just use it to visit friends and family. 

Search for no deposit car insurance quotes

Compare great value no deposit car insurance at It’s easy – simply fill in our online form or call an expert advisor on 0330 022 8814. 


Compare car insurance quotes today!