Pay monthly car insurance
We all drive different cars, so why shouldn’t there be different ways to pay for our car insurance too?
Everyone has their own preference and some of us choose to pay our car cover annually, up front.
But if you’re the sort of driver who would rather spread your costs evenly over the course of a year, then paying monthly may be for you.
If you’re undecided about the best plan for you, here’s our guide to monthly car insurance:
There was a time when paying for a full year or six months in advance was the only way you could secure car insurance. But not all of us have that amount of money available to spend.
Principally, under a monthly payment scheme, you pay equal instalments of at least £40 over the year, rather than paying £480 up front, for example.
This means you’ll effectively pay slightly more for the luxury of monthly payments than you would for paying in one fell swoop.
Let’s say, for example, you have been paying £540 for your yearly policy. In this case, instead of making 12 equal payments of £45 (£540), you may have to pay, say, £50 for the privilege (£600).
But for many, it’s still more flexible and convenient than having to fork out for the full whack in advance.
Top tip: Monthly deals are particularly recommended for people who don’t have bulging savings accounts or who are usually only one missed monthly wage packet away from going into debt.
No hidden surprises
It’s far easier to anticipate and prepare if you have the same amount of money going out of your account each month, rather than getting hit by one lump sum.
But for some, getting the payment out of the way and forgetting about it for a year works best for them.
Top tip: Switch to direct debit payments and you won’t even have to remember to pay each month, it will be done for you automatically.
* 1ST CENTRAL’s finance is provided by 1st Central Finance Ltd, Town Mills North, Rue de Pre, St Peter Port, Guernsey, GY1 6HS. Representative 41.25% APR (fixed). Price will include 6% insurance premium tax, £50.00 non-refundable policy arrangement fee and 16.75% service charge for instalment payments.