Although finally getting that coveted drivers license calls for a celebration, young drivers under 21 years old still have some wrinkles to iron out before getting the go ahead to drive lawfully on the roads. And that is only the minimum liability car insurance we are talking about that covers you against financial responsibility regarding the damages you cause to other parties and their possessions driving you are driving your car.

Unless you have a fat enough wallet, we will not even talk about comprehensive car protection that extends coverage to your own car, windscreen damage protection, car breakdown/recovery, roadside assistance and personal injuries etc.

Traditionally, car insurance with no deposit do not exist and drivers must pay for an entire year's worth of coverage upfront. As you may already know by now, car insurance for young drivers under 21 is never cheap and having to pay for the whole year's rates may jolly well mean working and saving for another year before driving for many newly certified drivers under 25 years old.

It is an unfortunate fact that many young and new drivers in the 18 to 25 years old high risk category are deprived from using the car due to financial constraints, even when they themselves are the careful and considerate sort of drivers that are mindful about the other road users around them.

Current risk assessment methods are still not personalized and are only based on the average statistical performance, which means you will be dragged down by other same age reckless drivers and must pay more for car insurance under 25.

That is why no deposit car insurance for young drivers are very popular. By paying on a month by month usage basis, their highly inflated young driver car insurance rates become just a bit more tolerable to these consumers with limited income levels. If you are on a quest to lower your average car insurance rates, note that buying no deposit car insurance runs counter with what you are trying to achieve.

Wait a minute, how can we say its cheaper in the first sentence and then turn around and say it is more expensive now for young car insurance under 21? Well, in exchange for paying for monthly car insurance with no deposit, the price is that the total sum of your 12 monthly premiums is going to be around 20% higher than what you would be paying upfront in a lump sum for the whole year.

Nevertheless, you have to gauge between cost savings and affordability and no deposit car insurance for younger than 21 may just be the ticket to getting to drive lawfully on the roads or to risk it and drive without even liability insurance. Of course you should never do the latter, but as the auto insurance companies and traffic police know, there will always be some reckless drivers that do so because they cannot afford to pay even monthly car insurance installments.

This is very dangerous to both your personal finances and future driving records. If you are caught by the police, you are liable to be banned from driving in future. On the other hand, if you cause an accident while driving without insurance you must pay for all damages and repairs cause to everyone involved, including your own car repairs and hospitalization fees if any.

Value Of Young Drivers Car Insurance With No Deposit

Monthly car insurance with no deposit can be expensive for new and young drivers under 21 years old, but the alternative can be even worse. This is a fact supported by historical data collected by the various traffic departments in various countries. For example in the United Kingdom, statistics show that a new driver under 21 years old will be 10 times more likely to be involved with a traffic accident compared to a driver above 30 years old. Research indicated that the average risk profiles for young male drivers between the ages of 16 to 21 are at least seven times higher compared to other groups.

Furthermore, every one out of five new drivers with less than six months of driving experience are involved with a motoring related accident even though they have passed and attained their certified driving licenses. Therefore, if you think that the monthly premiums for your no deposit car insurance is expensive, wait until you see the total sum of repairs and claims for everyone involved in a road accident. And that is not all; the renewal rates after a road accident claim can go up by 40% or more for young drivers insurance under 25 depending on the severity of the traffic accident and who is at fault.

While you may lament that these statistics are unfairly inflating up the rates for young driver car insurance, it will probably be easier to accept the facts that you do need at least monthly liability car insurance with no deposit if you are going to drive on the roads because you are more likely to be affected by the consequences of traffic accidents.

Cheap Car Insurance Rates Under 25

On the bright side, there are some ways to get cheap car insurance rates under 25 if you are willing to compromise on a few choices. Aside from the long and short term pros and cons of paying for no deposit car insurance, it all boils down to the perceived risk for the car insurer to accept you into their plans. The cheapest young drivers car insurance with no deposit tend to have strict eligibility rules such as having at least 6 months of regular driving experience, attended defensive driving school lessons, have no driving offenses within the past two years etc.

This is reasonable if you think of it this way. If I am a careful driver and you are a reckless speed demon and we pay the same no deposit car insurance rates every month, that means the auto insurer will make more money from me and possibly make some losses to handle your frequent claims.

No way am I going to reimburse your selfish dangerous driving from my monthly premiums. On the other hand, if everyone more or less have the same risk profile, it is more fair to be paying the same rates on monthly car insurance with no deposit for under 21 drivers with lesser experience on the roads.