You're 19 years of age and you been saving up like crazy for what seems like years – probably just several months really – for a car. You seen one on eBay that just about matches the sort of price that you want to pay, but your friends points out that perhaps you ought to look at the cost of insuring it first before making a bid. That will be a problem, you think optimistically; but when you get the quotations in you have a shock. The lowest quote that you can find is still well within four figures and you simply can't afford it! What do you do?

Well, you've probably heard about the new fangled no deposit car insurance (you can get a quote here) so you'd like to know a little bit about it. Strictly speaking, no deposit insurance doesn't exist and never has done; but there is a very close substitute! Whilst insurance companies in days gone by insisted on full payment upfront, a lot of them have now realised that an enormous number of people simply cannot afford to do this any more! So, astute business people that they are, they now offer what they call easy monthly payments; and the first payment is made by credit card, which means that it is possible to buy car insurance even if there is nothing in your pocket.

Like every offer these days it is not quite as simple as it looks. The first thing to bear in mind is that an already expensive insurance premium is about to get even more expensive because practically every company charges extra for this service, and to be brutally realistic they cannot be blamed. The second point to bear in mind is that you may have nothing to pay this month, but next month you will not only have to pay the regular monthly payment but you will also have to pay the first month's payment in the form of a credit card bill! It is vital that you make sure that your budgeting takes this into consideration.

Another thing to bear in mind is that the fact that you can pay insurance monthly is not the only point you have to consider! You should still do your due diligence and ensure that the policy that you buy covers all your requirements, and that there are no hidden problems in the small print (insurance companies are absolute experts at small print)! Another thing to check up on is hidden extras. You may not intend to keep the car for very long so how much will the insurance company charge you to transfer it to another one? How much will they charge you if you have to cancel? I'm one thing which a lot of people managed to miss; how much will the excess be that you will have to pay out yourself in the unfortunate event that you have an accident!

If you do decide to take out a no deposit policy, you would be well advised to use a good specialist price comparison site in order to make certain that you get the lowest price available.

© 2009 Marke Verber