No Deposit Car Insurance: Compare Pay Monthly Quotes UK

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No deposit car insurance helps drivers in the UK get a car insurance policy without a big upfront deposit. You do not have to pay 20% to 30% of the amount at the start of the plan. Instead, you pay monthly premiums. You only need to pay the first instalment to begin. This way, you get your cover right away without paying all at once.

This choice is great if you need to save money. It also helps if you have a low credit score, or if you are a younger driver and pay more each year. In this guide, you will see how car insurance works, who can use it, and how to compare car insurance options. This way, you can get the best value for what you pay.

What Is No Deposit Car Insurance?

There is not any such thing as totally free car insurance. But, with no deposit car insurance, you do not have to pay up front.

  • You do not have to pay an upfront deposit.
  • You get started with your cover by making just your first monthly payment.
  • The cost of your insurance is split up throughout the year, making it easy to pay.
  • You do not need to pay a big amount at the beginning to start.

Even though many call it “0 deposit,” you still have to make some kind of payment to the insurer before your cover can start. This is needed because the law says it is a legal requirement.

Who Offers No Deposit Car Insurance?

Many car insurance providers offer this type of policy. Some companies focus on car insurance for young drivers or people who have a low credit score. They also give more flexible monthly payment plans to help these drivers.

Each insurance company will look at your:

  • A credit rating is checked with a hard credit check most of the time.
  • The cost can be based on your age, where you live, and your driving history.
  • The type of vehicle you have and the level of cover you choose matter.
  • They also look at your claim history and if you have a no claims discount.

Even if you do not have a good credit history, there are ways to spread the cost of your cover. You do not have to pay a lot of money upfront.

Types of Cover Available with No Deposit

You can pick from all the regular car insurance cover levels.

Third Party

This covers the other people, their vehicles, and their property. It does not include your own vehicle.

Third Party, Fire and Theft

Adds fire damage and theft cover to basic third-party cover.

Comprehensive Cover

Includes all of the above, plus:

  • Your car gets fixed if it is damaged, even when you are at fault.
  • Personal accident cover
  • You get cover if a driver who is not insured hits you.
  • Repairs are done by approved repairers.
  • You can choose to add legal expenses cover and breakdown assistance.

Even if you choose a plan with a low deposit, you will still get full comprehensive car insurance. You will have the same protection as those who get yearly plans.

Types of Cover Available with No Deposit

What’s the Catch?

While no deposit car insurance is easy to get, you need to know the trade-offs that come with it.

This kind of car insurance lets you start your cover right away. You do not need a big up-front payment. It can help if you need deposit car insurance but do not have much to spend when you sign up. But, as with any car insurance, you should read all the details before you say yes, so you know what to expect.

Advantage Trade-off
Low or no upfront cost May include interest charges
Easier on your monthly budget Total cost is higher than annual payment
Available to drivers with poor credit May need to accept stricter terms
Get insured instantly Requires consistent monthly payments

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Tips to Reduce Your Monthly Premiums

  • Compare car insurance quotes to see them side by side
  • Choose a lower-risk car that is in a cheaper car insurance group
  • Put in a black box, also known as telematics or black box insurance
  • Try to limit your miles each year
  • Keep your car parked in a safe place
  • Build up your no claims discount
  • Go for a higher voluntary excess if you can afford it
  • Pay by Direct Debit, not credit card, as this may add extra fees
Who Should Consider It

Who Should Consider It?

This policy type is ideal for:

  • First-time car owners
  • Young drivers who pay high yearly costs
  • People who do not have savings for a large upfront deposit
  • Those who are facing short-term money problems
  • Drivers who want to manage monthly household costs more easily

Using a Comparison Tool

Using a reputable comparison tool helps you:

  • Get a clear list of quotes.
  • Compare the total price for one year to the choices you have to pay each month.
  • See which providers will take low credit scores.
  • Look over the payment terms, APR, and interest.
  • Spot representative cost savings across all the insurers.

The Financial Conduct Authority oversees the whole process. This is there to help make sure that everything is open and clear.

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What You’ll Need to Apply

To get started, you’ll need:

  • You need a full UK or provisional licence.
  • Have your car’s registration and details ready.
  • Know your estimated annual mileage.
  • Give details of any previous claims or convictions you have.
  • Your credit rating can be checked by most companies.
  • A credit card or your bank details are needed to set things up.

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Correct as of 03 June 2025

FAQs About No Deposit Car Insurance

No, that's not right. You need to pay your first monthly premium. But you do not need to pay an extra upfront deposit.

Most insurers do a hard credit check when you ask for monthly payments. A hard credit check can lower your score a little bit.

Yes, but you will need to pay a cancellation fee, and you still have to pay any instalments you have not paid yet. Always read the policy wording.

Yes. You can stop your current plan and go with a new insurance provider. But make sure that you get more money back than what you have to pay to leave your current insurance supplier. Always check the exit costs before you make this change.

No, no deposit car insurance is where you pay for the whole year but in monthly payments. A pay-as-you-go plan is based on how much you drive, and over time, it can cost more.

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Page last updated on: 17/07/2025

Page reviewed by: Shay Ramani

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