Insurance monthly installments

w3lsh_boy1

OK my car insurance is up for renewal. I have been quoted £505 with prudential and £100 cash back for using quidco. This brings the over all total down to £405 IF i pay in one lump sum.

I wish ti pay by monthly installments but they charge 21% interest, bringing the intial cost from £505 - £545. What is the best way to reduce this cost?

Steve

savedup

Hi

I had this problem with my insurer as well. They wanted 29% APR on D.D Payments!!

It seems to be a common feature with a lot of companies - but I know there are a few that don't charge this extra interest.

I found that the only solution was to pay with a credit card that has 0% on purchases for 9 / 12 Months, or get some new quotes from Co's that don't charge interest on monthly payments. - Though they are quite thin on the ground and tend to charge more anyway.

gazza975526570

alternatively find an insurer that doesnt charge you for installments.

Virgin is one of them

dunstonh

....however, many that dont charge interest have higher premiums to begin with. One way or another you should be comparing the bottom line only.

w3lsh_boy1

thats the problem. my current provider doesnt charge and are usually cheaper. But not on my current care which is unfortunatly group 17. Being 25 its hard to get competative quotes.

Jake'sGran

gazza975526570 wrote:

alternatively find an insurer that doesnt charge you for installments.

Virgin is one of them

We have had a few insurers that offer monthly payments with no extra charge. I have just insured out car with Saga for £207 FC and opted to pay monthly - £17.25. I was interested to find that Saga were cheaper than Esure.