Car insurance - Can it be paid of early without the interest?

SandA

Hello

Ive spoken to my car insurance today, asked if there is anyway around my situation - Partner taken a loan out to pay the insurance off in one go, been a slight delay but need to be insured by Friday to pick our new car up as need cover note - And they've told me, they have set up a direct debit monthly payments, and when I get the loan through, I can just ring up and pay it all off and won't have any interest. (Theres a 500 pound difference between a one of payment and paying monthly total, so its quite a big difference)... but I don't know if he was just trying to sell car insurance and i'm going to be stuck paying monthly now, and if I want to pay it all off, i'd have to pay the subtotal + interest if that makes sense?

Anyone know?
cheers

InsideInsurance

In theory there is nothing to stop you "early settling" the loan and thus avoiding the interest charges (which effectively is what insurance finance/ monthly payments are)

In practice a system may or may not be set up to be able to do this. I would be surprised if no insurer/ finance house can do it - some brokers/ insurers use external finance companies for the monthly DDs

Probably easiest to call them back, get someone else on the line and simply ask the same question again. One agent getting it wrong happens, getting two or more getting it wrong is much rarer and ultimately an easily winnable complaint if needs be

forgotmyname

Always ask 1st, The admin charges etc may outweigh the discount offered.