Save Money When Paying For Car Insurance

Comparing monthly instalment car insurance payment plans

Monthly Payment Methods

Before you spend ages on the Internet looking for the right car insurance, either for research or to compare car insurance prices and polices, it is worthwhile spending a little time and effort considering how you are going to pay for your car insurance.

The bottom line is that if you wish to pay for your cover on a monthly payment plan then you are more than likely to be paying more for your car insurance.

 Car Insurance on Debit

On average in the UK the cost of paying for monthly instalment car insurance begins at around 8% from the cheapest car insurers for a direct debit monthly payment plan and arrangement with your bank, and can rise to as much as 22.5% on average if you choose to pay by credit card.

Beware many of the larger car insurance companies who also charge a fee for credit card handling in addition to the interest charged by the funds provider.

 Your Individual Circumstances

When considering the best way to pay for your car insurance you must look at your own individual circumstances. Sometimes this means that you will end up paying more out of necessity.

Consider a young driver who has researched the market and been on all the car insurance comparison sites to find cover for his or her aging Renault 5. The best premium he could find was just over £2000 per year. Now this person only earns £16000 per year and cannot afford the annual lump sum payment method for cover for his car, whose value incidentally is less than the best car insurance quote provided.

This person is by economic means forced to take the more expensive monthly instalment payment plan option in order to be able to drive legally.

If you have the luxury, in these times of recession it would pay in the longer term to pay for the cover in one lump sum up front.

 Comparing Car Insurance

Whichever method of payment you decide is right for you, remember to include it in the options on the car insurance comparison form to avoid being offered quotes you have no means to pay for. Limiting your payment method also means limiting your choice and consequent higher premiums,

Yes, unfortunately if you choose to pay for monthly car insurance, you will not be offered so many choices of policy or cover when you compare car insurance, as you would for those companies who prefer you to pay instantly online.