Monthly Car Insurance

Dav1morton1

Hi, I’m new to this sight so apologies if I’ve posted on the wrong forum. Martin cattigorrically stated on tv last night that monthly car insurance policies do not exist and that if you don’t pay in full up front then you will be paying interest on your monthly payments. Not true! I have a policy with One Call, the policy only lasts for one month at a time and then is automatically renewed for another month, it’s called One Call platinum.

JJ_Egan

This is for saving on your TV . not motoring nor insurance .

The TV Martin sold this site many years ago .

Suggest you complain to the TV company .

RogerBareford

Dav1morton1 said:

Hi, I’m new to this sight so apologies if I’ve posted on the wrong forum. Martin cattigorrically stated on tv last night that monthly car insurance policies do not exist and that if you don’t pay in full up front then you will be paying interest on your monthly payments. Not true! I have a policy with One Call, the policy only lasts for one month at a time and then is automatically renewed for another month, it’s called One Call platinum.

So every month they recalculate your insurance premium? That sounds like it would be more expensive than a yearly policy with all the extra admin and you then have to check each month your getting the best price. But it would be good for short term insurance if it's competitive but i reckon a yearly policy works out cheaper overall.

MSE_ForumTeam5

We've moved this thread to a more appropriate board.

dunstonh

Dav1morton1 said:

Hi, I’m new to this sight so apologies if I’ve posted on the wrong forum. Martin cattigorrically stated on tv last night that monthly car insurance policies do not exist and that if you don’t pay in full up front then you will be paying interest on your monthly payments. Not true! I have a policy with One Call, the policy only lasts for one month at a time and then is automatically renewed for another month, it’s called One Call platinum.

Martin was correct.   

Car insurance is an annual policy and if you decide to pay monthly, you pay it under a credit agreement.  i.e. a loan.  The lender pays the insurer the annual premium and you pay the lender the monthly loan repayment.  You pay interest on that loan (at sub prime rates - i.e. the rate paid by poor quality borrowers).  That is why people are told to only pay monthly as a last resort.

And a quick check of the One call documentation on their website confirms it is done under a credit agreement.

Sandtree

RogerBareford said:

Dav1morton1 said:

Hi, I’m new to this sight so apologies if I’ve posted on the wrong forum. Martin cattigorrically stated on tv last night that monthly car insurance policies do not exist and that if you don’t pay in full up front then you will be paying interest on your monthly payments. Not true! I have a policy with One Call, the policy only lasts for one month at a time and then is automatically renewed for another month, it’s called One Call platinum.

So every month they recalculate your insurance premium? That sounds like it would be more expensive than a yearly policy with all the extra admin and you then have to check each month your getting the best price. But it would be good for short term insurance if it's competitive but i reckon a yearly policy works out cheaper overall.

Direct Line Pet insurance used to be a monthly policy with an annual review and so premiums are only recalculated at year end despite it being a monthly premium. It did mean however if you had a claim you could stop the policy at the end of that month rather than having to pay the remainder of the year.

The thing with Pet is that the maximum one claim can be is capped in the policy and so you can get yourself fairly comfortable with the cancellation risk. For Car insurance the policy must have unlimited cover for third party risks and even first party risks are typically much higher than the average Pet limit. I'd be surprised therefore if anyone was offering a monthly renewing policy at comparable prices to an annual policy.

As to "One Call Platinum", cant see any use of a "platinum" moniker on their website so unclear if a discontinued product or something else.

HelenNoreen

I have a car insurance policy with Aviva which is monthly payment (with no interest). Payments are taken on a reoccurring debit card payment, not sort code and account number (which resulted in a call of over half an hour to them to change the card details when my bank switched from Visa Debit to Mastercard Debit). This is my second year on this scheme. So monthly car insurance does exist !

dunstonh

HelenNoreen said:

I have a car insurance policy with Aviva which is monthly payment (with no interest). Payments are taken on a reoccurring debit card payment, not sort code and account number (which resulted in a call of over half an hour to them to change the card details when my bank switched from Visa Debit to Mastercard Debit). This is my second year on this scheme. So monthly car insurance does exist !

So, you are getting a monthly renewal notice?

Sandtree

HelenNoreen said:

I have a car insurance policy with Aviva which is monthly payment (with no interest). Payments are taken on a reoccurring debit card payment, not sort code and account number (which resulted in a call of over half an hour to them to change the card details when my bank switched from Visa Debit to Mastercard Debit). This is my second year on this scheme. So monthly car insurance does exist !

Nothing there suggests its a monthly policy, plenty of companies dont charge interest for monthly instalments and all accept a Continuous Payment Authority on cards. A switch between card networks will always create a headache because the card updater services are run by the three networks independently so the new card number cannot be provided by it if its on a different network.

Do you have a link to the product online anywhere?

HelenNoreen

Looking at it, I think there are some crossed wires here... the original post said that "monthly car insurance does not exist", then went on to say that Martin apparently said that if you don’t pay in full up front then you will be paying interest on your monthly payments...... only by being able to find the original episode will we get to the bottom of exactly what was meant. As a "monthly policy"; and "no interest charges unless you pay up front" are two different things. It was never my intension to suggest it was a "monthly policy", i.e cover 1 month at a time. Apologies for the confusion!

My point was that it is possible to pay monthly and not have to pay interest... I am not suggesting mine is a month by month policy. It is a 12 month policy, which I pay monthly with no interest. If you google the following "Aviva monthly payment car insurance with no interest", it will direct you to details about the type of policy I have (AvivaPlus). 

user1977

HelenNoreen said:

My point was that it is possible to pay monthly and not have to pay interest... I am not suggesting mine is a month by month policy. It is a 12 month policy, which I pay monthly with no interest. If you google the following "Aviva monthly payment car insurance with no interest", it will direct you to details about the type of policy I have (AvivaPlus). 

Surely all they've done is absorb the cost of the credit into the price, like any other "0% APR" deal. They don't appear to have an annual payment option to compare it against.