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    • barracuda1986
    • By barracuda1986 17th Oct 16, 10:45 PM
    • 5Posts
    • 0Thanks
    Car insurance - pay monthly or in full?
    • #1
    • 17th Oct 16, 10:45 PM
    Car insurance - pay monthly or in full? 17th Oct 16 at 10:45 PM
    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
Page 1
    • forgotmyname
    • By forgotmyname 17th Oct 16, 11:24 PM
    • 26,928 Posts
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    • #2
    • 17th Oct 16, 11:24 PM
    • #2
    • 17th Oct 16, 11:24 PM
    Why pay interest when you can pay it in full?

    Interest in car insurance is usually at a high % rate.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • nb0825
    • By nb0825 18th Oct 16, 9:08 AM
    • 114 Posts
    • 33 Thanks
    • #3
    • 18th Oct 16, 9:08 AM
    • #3
    • 18th Oct 16, 9:08 AM
    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
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