pay as you go insurance

pay monthly car insurance

Another day, and another increasing car insurance premiums is in the news. It seems that we are paying for every disaster in the world, from earthquakes to compensation claims by the legions of people who've now suddenly developed whiplash injuries, something which was practically unheard of backing the old days when cars had very poor safety provisions which have now reached epidemic proportions when we have airbags, side impact protection, padded steering wheels etc etc etc. Perhaps I'm a cynic but it does seem that perhaps small proportion of these may well be fraudulent, but then perhaps the neck of the average person in Britain is weaker these days.

Whatever the reasons, the fact is that insurance premiums are on the rise yet again, and are likely to continue to rise for the foreseeable future. This is bad enough problem already for those of us who have been used to paying very low premiums for a considerable length of time; it is infinitely more disastrous for young or inexperienced drivers who have found their already high premiums soaring up into the stratosphere. It is not at all unusual in fact for annual premiums for people under the age of about 25 to exceed the cost of their cars.

As a consequence a growing number of people simply cannot afford to pay their premiums upfront in the usual way and so the insurance companies, who have never been slow to recognise the market when they see one, have brought out a number of schemes to help people pay these premiums and one of the most popular ones is the no deposit car insurance system. The joy of this way of buying insurance is that premiums are paid monthly rather than all at once, and the first premium is paid by credit card which means that no initial deposit hast to be handed over by the buyer. The rise in the popularity of this way of paying car insurance has been meteoric and since car insurance is a highly competitive market more and more insurers are brought out their own zero deposit products which has meant that prices have tended to fall. This is particularly important for clients who require this type of cover because it is almost inevitably more expensive to buy insurance on a nil deposit basis than by a traditional way of paying in advance. This is because a no deposit policy is more expensive for the insurance company to administer, and so they add interest to the payments, sometimes going as high as 24% APR! This is why it is absolutely vital, if you are considering buying your insurance in this way, but you do not simply find out what your old insurance company will charge you but you must go to a good specialist no deposit car insurance comparison site so that you can find out what all the competitors will charge you as well! You may well be very surprised to see the difference between the highest and lowest charges; some companies are more eager to buy business than others, and occasionally offers will come along offering very low interest charges or even none at all.

What a short term car insurance you need to be as careful as you would be when buying a normal policy. Make sure that the company you buy from is a reputable one; there is no point in paying a long premium if you cannot get your insurer to settle a legitimate claim; and checked very carefully to make sure that you understand what is covered, and what isn't. Another important point which many people tend to ignore is the size of the premium excess; cheaper insurance companies can often insist on much higher excesses so in the event of a claim, which could in itself cause you to lose a no claims discount with consequently higher premiums in the future, you may find yourself paying a very high proportion of the costs yourself and it is becoming quite common for many people to avoid making claims on their insurance policies for some fairly small sums, unless it is absolutely essential..