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Insurance deposit question

Discussion in 'Insurance - Sponsored by Sky Insurance' started by ColganRaz, Jan 7, 2012.

  1. ColganRaz
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    ColganRaz Member

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    [Jan 7, 2012]
    Just wondering if anybody knows the answer to this question, googled it but couldnt find anything

    my insurance is due in march, I cant afford to pay the premium in one and my credit limit on my credit card would need to be massive to pay in one lol!

    I know generally insurance deposits are 20% of the premium, my question is can you pay any amount you want??

    If you can does it vary between different companies?

    Ideally I would like to pay £1000 deposit or more to reduce the monthly cost... Dont wanna be paying around 230 a month :(
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  3. ColganRaz
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    ColganRaz Member

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    [Jan 17, 2012]
    full week and still no answer :( i thought this would be a well known question lol
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  4. jojo
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    jojo Looking for Boost! Staff Member Moderator

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    [Jan 17, 2012]
    Didn't know you could pay a deposit and then finance the rest on car insurance, it's either pay in one lump sum or get shafted paying the monthly amount!? I would seriously try and find a way to pay it off in full. I know it's not ideal for you at the moment, but paying the insurance off in one go on your card is a LOT cheaper than paying the insurance company monthly.
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  5. ColganRaz
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    ColganRaz Member

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    [Jan 18, 2012]
    finding hard to get insurance quotes under £2300 at min so one payment is outta the question lol!

    when you pay monthly you pay a deposit then your monthly payments over 10 or 12 months dont you

    e.g. insurance is £2400, pay £500 deposit then you have £1900 to pay, over 10months £190 a month (before anyone mentions interest and all the rest of it remember this is just an example)


    my question is, lets use the previous example,,, my car insurance costs £2400, can i pay £1200 deposit, and then pay the remainding £1200 over 10 or 12 months, so i would only have to pay £120 a month or less?
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  6. jojo
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    jojo Looking for Boost! Staff Member Moderator

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    [Jan 18, 2012]
    I know what you mean mate, what I'm saying is, when you pay your car insurance by instalments, they whack the price up!, so for the example above, it wouldn't be £120 a month, more like £200 a month!! But if it was possible to pay the premium in full on a credit card, the interest you would be charged would be less than what the insurance company would charge you, but of course it could also go pear shape in the event that you miss a payment or go with minimum payment and build up a debt.
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  7. ColganRaz
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    ColganRaz Member

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    [Jan 21, 2012]
    yeah i know it will cost extra with interest but im willing to take the option

    I REALLY doubt the bank will up my credit limit to over 2k on the credit card, banks are right tight b*****d's lol

    I wonder if i could pay half debit card half credit card?
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  8. sgi
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    sgi Member

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    [Jan 21, 2012]
    The deposit will always be fixed at 20 % for example as that will be part of your credit agreement. If the dep changes then so does the amount of credit and interest thereby not complying with the consumer credit act that the broker or ins co has to. They will not change their terms on an individual basis. To reduce your monthly payments just pay the required dep the make an additional payment either then or whenever. Your term won't reduce but your payments will. Ask for a branch manager at Swinton, they'll know what to do.
    #7

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