We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Monthly car insurance

debtfree12000
debtfree12000 Posts: 30 Forumite
Tenth Anniversary 10 Posts Name Dropper Combo Breaker
in Debt-free wannabe
Hi everyone,

Happy New Year.

Haven't posted here in ages!

Well the end is in sight, I should finish my DMP this coming September after starting it back in 2013! I have a quick question to put out there to everyone.

I am considering paying my car insurance monthly as I have a few extra costs this year. Is this possible whilst on or nearing the end of a DMP? I have a couple of settled defaults on my credit file, and although not the best credit score, I dont think it is the worst?

Does anybody pay their car insurance monthly whilst on their DMP?

Many thanks

Comments

  • MovingForwards
    MovingForwards Posts: 17,158 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    I used to, only some companies didn't like me having a CCJ as well ;)

    The last few years I paid it all in one go because I was running a classic.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • EssexHebridean
    EssexHebridean Posts: 24,512 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Assuming you've been putting aside the money for the car insurance as per your budget what is the advantage to making it monthly now? It will cost you more remember - often substantially more.

    Are the "extra costs" essential while you are on the DMP? can they be delayed and budgeted for? Is your current budget actually working for you? And the big question - when was the last time you scrutinised an accurate SOA to see if anything has changed where savings can be made?
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    Balance as at 31/08/25 = £ 95,450.00
    £100k barrier broken 1/4/25
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • Sanctioned_Parts_List
    Sanctioned_Parts_List Posts: 491 Forumite
    Sixth Anniversary 100 Posts Name Dropper Combo Breaker
    As the APR for car insurance is typically around 30%, you're effectively volunteering to turn a £500 premium into a £650 premium. That's £150 less you have for this year's extra costs...

    If you can pay upfront, it's always cheaper in the long run.
  • sourcrates
    sourcrates Posts: 31,806 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    It is cheaper to pay upfront but you can’t always do that, I prefer to pay monthly, it actually costs around £3.20 per month in interest for my policy, certainly no where near £150 a year.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Treadingwater02
    Treadingwater02 Posts: 119 Forumite
    100 Posts Second Anniversary Name Dropper
    Hi,

    I'm on a DMP and have just renewed house insurance and I'm paying it monthly, I didn't have any issues. Hope this helps.
    LBM Debt at: £47454:eek:
    Current total 26th Oct 2020 £ 25,808.04
  • Sanctioned_Parts_List
    Sanctioned_Parts_List Posts: 491 Forumite
    Sixth Anniversary 100 Posts Name Dropper Combo Breaker
    sourcrates wrote: »
    It is cheaper to pay upfront but you can’t always do that, I prefer to pay monthly, it actually costs around £3.20 per month in interest for my policy, certainly no where near £150 a year.
    It was easier to base on a £500 premium and count on fingers than to pick a realistic premium and count from there :beer:
  • DMP_Tiger
    DMP_Tiger Posts: 182 Forumite
    Second Anniversary
    I pay mine monthly and have just switched insurance companies and had no problems.
    August 2018: Secured Debt £70,003 Unsecured Debt (DMP) £34,657 Total £104,660 DFD: March 2031
    January 2019: Secured Debt £68,269 Unsecured Debt (DMP) £34,457 Total £102,726 DFD: March 2031
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.1K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture