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!
Increase in car insurance premium just for paying monthly
simone01243
Posts: 2 Newbie
Looking to put my son on our car insurance policy.
But having looked on comparison sites there also seems to be a huge increase if you choose to pay monthly as opposed to annually. I know having a young driver on your policy will increase but if you can't afford to pay for the insurance annually why does it increase so much. I'm going to have to change my car insurance as my currently policy won't accept my son on it until he's 18 and held a full licence for a year. Having my son on a new policy starts at £650 but increases to £1000 ish just because you need to pay by monthly payments. Perhaps Martin needs to investigate this as it seems a complete rip off.
But having looked on comparison sites there also seems to be a huge increase if you choose to pay monthly as opposed to annually. I know having a young driver on your policy will increase but if you can't afford to pay for the insurance annually why does it increase so much. I'm going to have to change my car insurance as my currently policy won't accept my son on it until he's 18 and held a full licence for a year. Having my son on a new policy starts at £650 but increases to £1000 ish just because you need to pay by monthly payments. Perhaps Martin needs to investigate this as it seems a complete rip off.
0
Comments
-
I can't comment on the increase for monthly payments, but £650 seems awfully low for having a 17yo without full license on the policy to begin with.
Have you tried how the quote is affected between yearly and monthly payments without your son on the policy?0 -
Paying monthly involves credit, a finance agreement and interest hence the difference in prices.Mortgage started 2020, aiming to clear 31/12/2029.0
-
The premium should be the same whether you pay monthly or annually as this is assessed as an underwriting risk. What will cost you extra is the interest charges for making monthly payments and that is standard for most brokers.0
-
You don't actually pay monthly. You pay for a years insurance upfront, take out a loan to pay for it and pay back the loan monthly. The loan comes with an interest rate which is usually rather high - if you are able to borrow the money from an alternative source (bank? 0% credit card?) it will likely work out cheaper.0
-
The fact that he doesn't have a full licence is actually a good thing as far as the premium goes. It will likely rise significantly if/when he passed his test.I can't comment on the increase for monthly payments, but £650 seems awfully low for having a 17yo without full license on the policy to begin with.0 -
The fact that he doesn't have a full licence is actually a good thing as far as the premium goes. It will likely rise significantly if/when he passed his test.
That's how I understand it as well - whilst on a provisional, the driver is supervised but as soon as they go solo, the risk rockets.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
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