No Deposit - Pay Monthly Van Insurance

No Deposit Van Insurance

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The No Deposit Van Insurance policies are very similar to a standard van insurance policy except for the payment process. Some insurance firms refer to this type of policy as low deposit van insurance.

Why choose no deposit van insurance?

The no deposit van insurance policy is designed to help reduce the initial amount of funds to make the policy active. This can be beneficial to those van operators that are young or have numerous tickets on their driving licence and will have a higher premium cost than other drivers. Other van insurance options include young driver van insurance and any driver van insurance. However, no deposit van insurance is popular with younger van drivers.

This type of policy is also well liked by van operators that have a small revenue stream and capital where a large initial payment is not possible.

Is there no deposit required to have van insurance?

What is a little deceiving is the term no deposit. For many insurance firms, the initial payment is generally no longer in cash or via a check, but instead by direct deposit from the bank account connected to the new policy. This allows for the payment to be taken out of the bank in one to two days. At that time, the first payment will be made.

How are the payments different between a standard and no deposit van insurance policy?

  • Standard policy from most insurance companies requires an initial payment of 20% of the annual cost of the premium. The next 11 monthly payments will then be divided up at 7.3% each, so the full amount will be paid to the insurance company.
  • No Deposit policy has each payment, including the first one to be of equal amounts. This makes each payment to 8.3% of the total payment for the policy.

What is more expensive standard or no deposit van insurance?

With the initial payment of only 8.3%, the no deposit van insurance is the cheapest for the first payment only. Since the remaining balance has interest attached to it, the no deposit van insurance policy will cost the owner a little more in terms of total amount paid for the year.

How can the cost of van insurance be reduced?

The easiest way to reduce the cost of van insurance premiums is to park the van off the road when it is not in use. A secured location like a locked shed or garage would be best. If that is unavailable then a driveway would due and be better than on the street or in an alley.

By taking an option in the policy to pay a higher excess when a claim is made is another path to reducing the cost of the annual premium. This is similar to for example van rental excess, it is the amount that you will be held liable if you are the cause of an accident.

Many insurance firms also provide the owner of a van a discount when a security system or alarm is installed on the van.

The use of no deposit van insurance is a fast and low cost path to getting your van insured, so you can legally operate on the roads in the UK. Once you have a revenue stream established, you can save up your funds and make an annual payment to cover your van insurance. This will save you the interest you once had to pay.

Compare a range of quotes with Multi Quote Time

If you're looking for the best deal on no deposit van insurance, start by getting multiple quotes from a range of UK brokers. Multi Quote Time can help by providing this service. Simply select the start quote button below and enter some basic details. On completion, you will be able to view all the available options for van insurance with a low deposit. If your business is growing, you may wish to consider multi van insurance, which will often work out cheaper than separate van policies. 

*51% of consumers could save £403.04 on their Van Insurance. The saving was calculated by comparing the cheapest price found with the average of the next five cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from March 2022. The savings you could achieve are
dependent on your individual circumstances. 

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