Interest charges on car insurance paid by direct debit

theesel1994

What is an average interest charge to pay if you decide to pay your car insurance by direct debit?

I currently pay my car insurance £439.59) by credit card - this is for 10 months, not a year to build up no claims discount quicker.. This was ok as I used to pay off my credit card and there was no interest charges. Now it looks as though I'll be paying interest charges for the next couple of years so I'm cutting all spending on my credit card. If I don't have it I can't spend it. Should have used that wisdom two years ago and I wouldn't be in this bother.

I've phoned up Admiral and they are extremely vague about things as my renewal isn't until 11th March. I asked them what rate of interest it would be to pay by d/d and they said it can vary between 8 and 18%. I would also lose the 10% discount I get if I pay in one go.

I'm thinking if my credit card is 1.736% per month I might be better of paying it by d/d. I'm not all that good with percentages and such like and with my sums I reckon I should still be better off up till about 11.75% interest. Just wanted to know if anyone else is paying by direct debit how much they are charged (%) in interest.

Actually, after a year I still won't have paid off my insurance by c/c and I will be paying interest on it after that.

dunstonh

What is an average interest charge to pay if you decide to pay your car insurance by direct debit?

i dont know but I would expect it to be damned expensive. I wouldnt be surprised to see it at store card level.

You wont know until you shop around with your renewal. Remember that its the bottom line that matters. i.e. price and interest rate. Not one or the other.

Oscar_The_Grouch

About 3 weeks before your car insurance is due for renewal, apply for a zero rate credit card. They usually give you longer on 0% for balance transfers (but charge you 3% of the balance as a fee and usually with a minimum) but will give you 3-6 months free on purchases with no fee.

Either pay for the insurance on the 0% card or transfer the balance from your other card (once you've paid it) and then spread the cost over the 0% period.

Here's the things to remember:

1. Pay off the whole amount before the 0% ends.
2. Cancel the card as soon as you've paid off the balance.
3. DO NOT PUT ANYTHING ELSE ON THE CARD! They'll charge you interest.