CAR INSURANCE AND MONTHLY PAYMENTS
Paying for your car insurance monthly.
Most Car Insurers will accept premiums above a specified minimum in either monthly or quarterly instalments by making a surcharge on the premium to cover the cost of administration or, alternatively, by arranging for the credit risk to be carried by a finance house. This will obviously make purchasing car insurance this way more expensive.
In this connection it is necessary for insurers to pay regard to the requirements of the Consumer Credit Act. The Act, among other things, requires the licensing of credit and hire businesses and the full disclosure of information to the debtor relative to the amount of interest charged.
All on-line car insurance websites today accept credit and charge cards to facilitate the payment of motor insurance premiums. One major insurer has a scheme whereby the whole premium may be settled by way of a credit card on the inception date of the policy and the insurers then advise the insured’s bankers the total premium due plus a small service charge.The bank then transfers the total amount to the insurers and comes to its own arrangements with the insured for the repayment of the amount in an agreed number of instalments. As motor insurance premiums rise steadily, more and more insureds are looking to credit cards as a means of lessening the blow and a number of schemes similar to that described above are currently in operation.
Nearly all Car Insurance Companies allow you to pay for the cover by Bank Direct Debit. All will charge a percentage for the pleasure which will add to the cost of the car insurance. If you pay this way be sure to keep up with the monthly payments otherwise the cover will be automatically cancelled!
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