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.

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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

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

Response
No44.67%
Yes30.62%
I don't have car insurance24.71%
Source: Finder survey by Censuswide of Brits, December 2023
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