It is not possible to insure a car in the UK without paying at least something towards the premium. It simply isn't legal. Some insurers do provide low deposit car insurance; this website has more information on this.
The majority of young drivers under the age of 25, particularly those who are even younger or may have just passed their driving test, have to look for car insurance that they can pay for monthly with the absolute minimum deposit, for the simple reason that they cannot afford the high premiums that younger motorists have to face. Unfortunately they are in the worst position for finding so-called no deposit car insurance.
The problem is that those who buy car insurance that is paid for monthly actually enter into a credit arrangement. This can be provided by the insurance company itself, a broker who is handling the transaction, or an external finance company. Either way, there will be charges to pay over and above the basic premium, and a credit check will almost certainly be run on the applicants. The low other persons age is, the less likely it will be that they will have a good credit rating, and the more expensive the credit charges will be. In many cases credit may in fact be refused completely.
This will vary from one person to another. In 2018 a rough average was about 11%; this meant that for most younger drivers credit charges alone ran to 3 figures. However, the extra that the insurance companies were charging for paying monthly was not the major financial drawback. Some of the cheapest insurers for young drivers do not accept monthly payments at all, and insist on full payment in advance. This means of course that a more expensive basic premium has to be accepted, and by the time the interest charges have been added to this the total amount payable is likely to be very considerably higher than someone who was paying yearly would be offered.
Experiences shown the insurers that the younger their customers are, the more likely they are to fail to complete all the agreed payments, on schedule. This is partly because the premiums are so high, and younger people usually have incomes which are far lower than older ones. There are very few under 25s who do not struggle to pay their car insurance premiums, particularly when they are quite possibly having to pay heavy rent charges, or saving up to buy their own homes.
JIf they can persuade their parents to lend them the premium, subject to them paying them off monthly, they would be able to pick and choose their policies and get the very cheapest one available to them. Alternatively, it is sometimes possible to get a bank loan; or even a credit card with an initial zero interest charge. It is very important however that repayments on either alone or the card are kept up-to-date, says otherwise there are inevitably penalty clauses which could prove to be extremely expensive.
Site text and images are copyright of Tony Gray, 2018.