Pay over 12 months for car insurance, without a large deposit
paying for your car insurance monthly is easy online. Many insurers now offer month to month payment plans with low deposits and up to a year to pay.
Are easy payments more expensive?
Most insurance companies have extra charges for drivers who prefer easy payments, but some can be very much cheaper than others. There are often special offers and discounts too, which can save you money.
However, the lowest charge for paying for your policy on credit terms instead of yearly is not the most important thing. There is no point in buying an insurance policy for your car because of free credit, if the basic premium is too expensive. To buy affordable, low priced insurance you need both a cheap premium and low, or no, credit charges.
How do I find the cheapest policy?
Remember that insurers that offer the very keenest, low budget prices (or the finance companies they deal with) for the basic policies will often charge the highest credit fees. Often it is cheaper to buy a more reasonably priced policy from a well known insurance provider with lower finance charges.
You need to compare competitive quotes on a price comparison site which gives you:
- The premium if you pay in full upfront;
- The repayments if you pay over 12 months;
- The total premium if you pay over 12 months;
- The APR you would be charged, and
- A clear explanation of the finance terms and conditions.
Are there more economical payment plans?
Check the insurance company's APR. It may be cheaper to pay by credit card and pay the bill off over 12 months if you have an inexpensive one. Alternatively, taking out a small loan or overdraft may be a cheaper way of paying, provided that you find a reasonably priced one.
Should I accept the lowest quotation?
Budget priced insurance is not necessarily the best bargain. Low cost insurers are often based abroad and can be difficult to contact or slow to pay claims. Before paying the premium of a cut-price company look up reviews of it on the Internet and it may turn out to be not such a giveaway after all.
Should I be careful about special offers?
Motor insurance is highly competitive and cut-price offers abound for motorists who are happy to switch from one insurance company to another. Remember, though, that reduced prices or special offers are usually only valid for the first year. At renewal time you may find that a reasonably priced policy has suddenly become an expensive one as your insurer starts charging you the normal commercial rate instead of a discounted one. Most motorists never notice this and pay up. The secret is to refuse them permission to automatically charge any new premiums to your card and examine renewal notices carefully. Many savvy drivers pay the lowest possible insurance premiums by switching providers every year which is a valid way of keeeping your costs as low as possible, provided that you have no claims pending.
Which is the cheapest insurance provider?
There isn't one. Companies base their premiums on many factors and they all weigh these differently. Some may calculate a lower premium for, say, sports cars but then increase them if they don't like the parking arrangements or the postcode the vehicle will be kept in. Another may be the cheapest provider for young drivers with small cars and clean licences but the dearest for those with accidents/convictions, or under-25s driving older machines. The only way to be sure of finding the cheapest possible quotes, with or without monthly repayments, is to compare as many prices as possible.
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