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?

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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

Finder survey: What proportion of Brits let their car insurance auto-renew in the last 3 years?

I don't have car insurance18.21%28.31%
Source: Finder survey by Censuswide of 1032 Brits, December 2023
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Tom Stelzer is a writer for Finder specialising in personal finance, including loans and credit, as well as small business and business loans. He has previously worked as a freelance writer covering entertainment, culture and football for publications like FourFourTwo and Man of Many. He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney. See full bio

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