No deposit van insurance

Van insurance can be expensive, so it's likely you'll want to pay as little upfront as possible.

Whether your van is for personal or business use, van insurance is a necessary expense. Paying less upfront for insurance may sound like an attractive option, but there are certain costs to doing so. If you want to avoid paying a deposit, you may want to consider paying an annual premium on your van insurance.

Promoted van insurance

Get a van quote with

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

What is no deposit van insurance?

No deposit van insurance is any policy that does not require you to pay anything upfront when taking out the policy. However, in reality, there is no way to avoid paying nothing when you first take out insurance, even if you’re not technically paying a deposit.

While in the past you would pay for insurance on a yearly basis, insurers nowadays are willing to let you make monthly premium payments. This may make it easier for you to cover the cost of insurance, but you’ll generally be charged interest to do so, meaning you’ll end up paying more for insurance over the course of the year. If you choose to make monthly payments, many providers will also require that you pay an upfront deposit of around 20% of your annual premium.

That means that the only way to get no deposit van insurance would to be pay your entire annual premium upfront.

Monthly vs annual premiums

When it comes to paying for van insurance, choosing a policy with no deposit is not necessarily the best way to get a better deal. Choosing to pay a one-off annual premium means you’ll not pay any interest on your insurance and won’t need to pay a deposit. However, it will require you to be able to make a large upfront payment, which may be difficult.

By choosing a policy with monthly premiums, you’ll pay less upfront, but will generally end up paying more over the course of the year, due to interest. You may also be required to pay an initial deposit, along with your first month’s premium. While you’re likely to save money by paying for your van insurance annually, this may not be feasible for some people and may cause others issues when it comes to managing your day-to-day finances.

DepositInterest chargesUpfront cost
Annual premiumNoNoEntire annual policy cost
Monthly premiumOn some policiesYes, on most policiesFirst month’s premium (and potential deposit)

How to save money on van insurance

There are a number of things you can do to reduce the cost of van insurance, regardless of whether you choose to pay monthly or annual premiums. These include:

  • Choose a higher voluntary excess. Most insurers will give you the option of increasing the size of your insurance excess, which is the amount you pay when you make a claim. By choosing a larger excess, you’ll generally receive a lower premium, meaning you’ll pay less for insurance.
  • Get a telematics policy. Black box van insurance is designed to reward good drivers by tracking their driving performance. The safer you drive in terms of accelerating, braking and turning, the cheaper your van insurance will be.
  • Build a no claims bonus. If you can avoid claiming on your insurance for a couple of years, you’ll be eligible for a no claims discount and can save money when you renew your insurance.
  • Improve your van’s security. By installing cameras or alarms and parking your van in a secure location, you reduce the risk of theft. Your insurer will likely offer you a lower premium as a result.

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

  • Vauxhall Vivaro insurance group

    Find out which insurance group the Vauxhall Vivaro falls under and how much it costs to insure.

  • Monzo review: Is it worth it?

    Is Monzo’s app-only bank the right option for you? Read our review to get the low down on all of the features and benefits. We talk about Monzo’s new Current Account, overdraft facilities, and all of the features of the Monzo app.

  • Citibank Citigold current account review

    If you’re a keen traveller, find out whether the Citibank Citigold account is right for you.

  • How to get free stocks and shares in the UK

    Find out which platforms are offering free stocks and shares for new customers in the UK.

  • Review: Kriptomat cryptocurrency exchange

    Discover the features available on the EU-focused Kriptomat cryptocurrency exchange, how to get started and what cryptocurrency investor the exchange is best suited for.

  • Scottish Friendly review

    Scottish Friendly is a mutual organisation in the UK that offers ISAs and investment bonds. Read our review to find out what we think of Scottish Friendly and how much it costs.

  • Tulipshare review

    Tulipshare pools together investors to get you better shareholder rights than you get individually. Read our review to find out how.

  • Sugi review

    Sugi assessed your existing investments to find out how ethical they are. We’ve reviewed its features, fees and pros and cons.

  • Compare international money transfers for your business

    Find the most convenient and cost effective way to transfer your businesses money internationally. Compare money services to get the best exchange rates and low fees.

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • 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 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 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