Pay the insurance on monthly or yearly?

londonTiger

insurance companies charge a bomb for monthly premiums. there was something in the region of £200-£400 extra I would have needed to pay over the course of a year if i paid monthly.

If you need to budget, just get a 0% purchase credit card and pay the full insurance in one go and then set up a standing order to pay off your credit card.

InsideInsurance

You pay whatever is the cheapest option.

If it is 0% APR then you may as well pay monthly as the money is better sitting in your bank than theirs. If its not 0% APR then pay it off in full if you can afford to. If you need credit to pay for it then take whoever is offering the lowest APR and that is unlikely to be the insurer.

As others have said, choosing to pay monthly just means you've been given a loan not that you have changed the terms of your policy.

albionrovers

Any RBS pay-monthly customers had their motor insurance cancelled for no reason recently? Annual, every time.

LandyAndy

londonTiger wrote: »

insurance companies charge a bomb for monthly premiums. there was something in the region of £200-£400 extra I would have needed to pay over the course of a year if i paid monthly.

.

:eek::eek::eek:That's more than my annual premium.

Meadows

Because you pay monthly does not stop them wanting the full years payments should you wish to end the policy early.
Pay as per your budget allows, but monthly payments can cost more than a one off annual payment.

Stoke

I just pay yearly.

Herzlos

If they are charging any sort of interest at all you are probably best paying it in one go, as it'll be more than you'd get from savings and probably more than you could get a loan for.

It's worth noting that some insurers charge a premium for paying by credit card, so your savings by using a 0% purchase card may be wiped out there.

Prothet_of_Doom

If you can't afford to pay yearly, ask yourself why you failed to budget over the last 12 months and kick yourself hard.