Are Zero Deposit Car Insurance Policies As Secure As Usual Policies?by Insurance Market InsuranceMarket.ae by AFIA Insurance Brokerage Ser
Find out more about zero deposit car insurance policies and how secure are they in the blog below!
You have probably
heard of zero or no deposit car insurance, and that unlike usual car insurance,
you don’t have to pay a huge amount upfront. But does such a solution really
exist or is it more of a marketing scheme? We’ll try to shed some light on the matter.
Zero or no deposit car insurance isn’t any different than usual car insurance, in fact, with zero deposit car insurance you’re purchasing the same insurance policy, only spreading the payment of the premium over 12 months instead of a large sum in advance.
So technically, zero deposit car insurance policies as a product do not exist; rather they are an alternative payment structure for the same usual car insurance policies offered by your insurers.
In addition, and
contrary to what the name may indicate, you may have to make some sort of
payment to activate the cover, this is often the first-month instalment in
Getting to the main point of this blog and the questions we have received about how secure is zero deposit car insurance: it is as safe as any other insurance method! As we have highlighted, it is the same usual car insurance but with spread payments.
However, influenced by the title, you may be under the impression that this insurance policy would be a monthly car insurance policy. And that it covers you for a month period at a time. You may have doubts about the insurance provider cancelling your policy the next month after you claim on your insurance.
And though we understand how such concerns may have risen, we assure you that when it comes to security, zero deposit car insurance is no different than usual car insurance policies, and all the aforementioned concerns have no real possibility in real life. . The only point to consider is that to maintain cover you must maintain premium instalment payments! Failure to pay means your policy could be cancelled by your Insurer so it’s important to pay your premium on time, but that’s an entirely reasonable condition and should not be a cause for concern.
Whether we think you should buy a zero deposit car insurance or not, will rely mostly on the specifics of your own situation. But, if you are dreading paying a huge amount of money upfront or might not be totally prepared to make such payment this month, then this could be the ideal option for you. One thing you should pay attention to is if there are any fees or interest added for spreading the payments and if that interest rate is lower with a different insurance provider. So always read the small print.
Alternatively, you can put your mind at ease, and choose between different policies from different insurance providers and still pay monthly by contacting our friendly team of insurance advisors at InsuranceMarket.ae They’ll go the extra mile to ensure you have the best policy and will set up your monthly payments with our “Insure Now, Pay Later” option. How simple! Why wait? give us a try today!
Created on Nov 23rd 2020 01:10. Viewed 381 times.