Paying for car insurance card or direct debit?

Slinky_Malinky

Hi,

I am about to move to a new car insurance provider. For the past few years I have been paying my monthly instalments as money was tight, but I feel the time is right to pay in a single payment and save the interest costs. I have the option of a single direct debit payment, debit or credit card (paid off in full to avoid interest) but not sure which is the best choice.

Direct debit means I have the ability to easily cancel the mandate if I change insurers next year, but presumably a credit card would offer extra protection in the case of problems the same as for other purchases? For both debit and credit card payments I am not sure how easy it would be to stop them taking money from me next year if I go elsewhere.

Any advice most appreciated.

Thomas_Crown

If you pay your motor insurance premium by credit card you should be offered the choice of setting up a 'continuous payment authority' or making a 'one off' payment. I always choose the latter option as it makes it easier to change insurance company in future years.

Slinky_Malinky

Thanks very much. Now I just need Sainsbury`s to rectify the technical fault on their website so i can actually buy the policy!