Low deposit van insurance
A low deposit policy can help save you money upfront on your van insurance, but is it cheaper in the long run?
What is low deposit van insurance?
Low deposit van insurance is any policy that charges you a smaller upfront cost, compared to policies that make you pay the full cost of your insurance from day one.
When it comes to van insurance, your insurer will likely give you the option of paying for your annual cover in an initial lump sum, or over 12 monthly premium payments. If you choose to make monthly payments, you’ll often be required to pay a deposit (which may be around 20-30% of your annual policy cost), as well as your first monthly premium, upfront.
You can think of low deposit van insurance as any monthly policy that requires a smaller percentage deposit upfront, or even no deposit at all.
How cheap is low deposit van insurance?
While low deposit van insurance may offer cheaper upfront costs, it’s likely you’ll end up paying more for insurance than you would with an annual premium policy. This is because insurance providers will often charge interest to customers who make monthly premium payments, meaning the overall cost of your policy will be higher.
It may be more manageable to pay for your van insurance on a monthly basis as opposed to an upfront lump sum, and this is something you’ll need to weigh up against the cheaper cost of annual premiums. Some insurers do offer interest-free monthly premiums, so it’s always worth comparing a range of policies if you’d prefer to make monthly premium payments.
Who offers low deposit van insurance?
Most van insurance providers will give you the choice of making monthly or annual premium payments, and therefore the option of low upfront costs. While it’s generally cheaper to opt for a one-off annual payment, monthly premium policies can help make it more affordable to cover the cost of your insurance, and some insurers offer monthly policies with no additional interest charges.
What are my other options?
There are other types of van insurance that offer low upfront costs, including:
Pay-as-you-go van insurance. Pay-as-you-go cover will still charge a small upfront payment, but this is likely to be cheaper than regular low deposit van insurance. You’ll then also only pay for the amount of cover you need, based on how much you drive.
Temporary van insurance. You can get cover for as little as 1 hour up to 28 days with temporary van insurance. As the policy is agreed for a certain period of time upfront, you likely won’t need to pay any deposit.
Frequently asked questions
More guides on Finder
No deposit van insurance
Find out if you can get van insurance with no deposit and the best ways to save money on your policy.
Vans are a popular choice for individual or corporate use, so we’ve collected all the latest facts about van use in the UK right here.
How to get cheap van insurance
Find out why van insurance premiums can skyrocket and how you can keep costs down.
Black box van insurance
Could a black box fitted to your van save you money on your insurance? Read our guide to learn more about telematics insurance and compare deals on your van cover now.
Modified van insurance
Have you made changes to your van? Find out more about modified van insurance and how you can cut costs on your policy.
Commercial van insurance
Use a van for business? Find out what commercial van insurance is, plus any benefits and ways to cut costs.
Van insurance groups
What are van insurance groups? Find out more and how you could get a cheaper van insurance premium.