Monthly Car Insurance

Sandtree

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). 

Absolutely, plenty are "interest free" but there is a difference between interest free and monthly policies particularly in relation to cancellations which can be expensive on annual policies and may not be possible if there has been a claim.

HelenNoreen

user1977 said:

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.

Honestly... I am not sure. You might be right... but I do a lot of shopping around, and this seemed to be the most competitive quote compared with the cover available. I would normally pay my insurance up front rather than pay interest; so it wasn't this facility that drew me in to take out cover with Aviva; it makes no odds to me. I purchased as it was the most competitive price for the benefits. 

Sandtree

user1977 said:

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.

Yes and no

Given there is no physical product and they are the insurer they haven't really lost anything by giving interest free period, even if you'd paid in full up front the premiums would sit on the balance sheet under Unearned Premium as a liability and given the liquidity needed by general insurers the investment return is modest in comparison to Life. If you don't pay they can simply cancel the policy and thus close the door to future claim.

Obviously if you go into a shop and buy a £1,000 TV they've paid their supplier £600 for it and if you don't pay they have to either try and get the TV back or enforce the debt all of which needs to be covered by the APR.

This is why brokers, shops etc more commonly use external finance companies because the cashflow challenge it causes given they have to pay up before you do. An insurer doesnt have that issue in principle and hence can more easily self fund.

csgohan4

I wonder if OP as their only first post is advertising given their possible intentional lack of reading of T+Cs.  I wouldn't touch One call with a barge pole.