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?

Promoted
Confused.com van insurance

Get a van quote with Confused.com

  • Save up to £247* on your van insurance
  • Compare over 40 van insurance providers
  • Our van customers rate us 4.6/5*

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


The offers compared on this page are chosen from a range of products we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations), aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When making a big financial decision, it's wise to consider getting independent financial advice, and always consider your own financial circumstances when comparing products so you get what's right for you.

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked
Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site