Car insurance - pay monthly or in full?

barracuda1986

Hi guys

My car insurance is due next week and I'm currently 4 years after being declared bankrupt so everything I do at the moment is about repairing my credit report to the best I can, is it best for me to set up my new policy on a pay monthly or as an outright purchase?

I haven't got an issue with regards to the monthly payments but I do know that sometimes not having any debt is better than having some showing on your report.

Cheers in advance

forgotmyname

Why pay interest when you can pay it in full?

Interest in car insurance is usually at a high % rate.

nb0825

Car insurance will always cost more if you pay monthly. This is because insurers they're effectively loaning you the full amount and you're paying them back. Also some people may decide not to pay whilst driving around insured. If you can, pay in full or get a 0% credit card, pay in full with that and pay off the credit card in the same way you'd pay the insurance company