Whats best - paying your car insurance in full or paying monthly?

Paying in full

Pro's
- Don't have to worry about insurance for 1 year
- You know you definitely got Insurance
- Pay Less than paying monthly

Cons
- May not be able to afford to pay for the repair of car after paying insurance in full then you wont be driving your car
- Takes quite a lot of money out of you straight away

Paying Monthly

Pro's
- Can afford repairs if needed
- more spread payments
- Still have same rights as paying for it full

Con's
- Skip a month and your driving without insurance
- Again skip a month and your policy will be cancelled
- cancellation fee if you cant afford the remaining months
- Could be miss read on the police database
- Extra fee's to go onto your monthly balance

Conclusion

If you still have Â£350 - Â£500 left after paying it full pay then pay the insurance in full if you got like Â£100 left or 0 - Â£300 left then pay monthly

I'm an insurance agent. Here's how to save money:

You can save money by paying in full. Most companies now charge a billing fee that ranges from 2.00 to 5.00 every month! If paying in full is too much to handle ask about automatic withdrawal from your bank account each month.

Also, ask the agent if you're getting all the discounts. They will then ask you some screening questions and apply any additional discounts you're not getting already.

Finally, look at your deductibles. The higher the deductible the lower the premium. I wouldn't recommend going higher than 500. Any higher and youmight as well take liability only (for older cars).

danceswithwolves

depends on whether you can afford a years insurance all at once

most people pay monthly because the payments are spread out, though they do add on a percentage for the priviledge of paying monthly

so if you can afford to its def cheaper to pay the whole year in advance

knownout

I have done both , Find it easier to pay monthly now instead of a lump sum . It costs exactly the same , . A months payment is a twelfth of the annual payment .. Doesn't make any difference to your cover at all

big owl

If you can afford it pay in full,if not by monthly,some insurance charge an admin charge if you pay by month.

entidtil

It is almost always more expensive to pay monthly. Also.... Many insurance companies treat paying monthly as a loan for the annual premium spread out over 12 months and some require you to pay back the entire "loan" even if you cancel. I pay semi-annually Be careful !

bigtdotcom

if you can afford to pay it all in full it will be cheaper than paying monthly

John

It's normally the same amount either way, so it's whatever best matches the way you budget and pay your other bills; whatever works out best for you.

Sometimes some companies will give you a discount if you pay 6 months or a year at a time and/or have automatic direct payments set up through your bank account or on a credit card, so you could check into those options also.

islandhobbler

when i was single i payed my in full once a year with my tax return, that way i did not have to worry about that monthly bill, but if you can afford that monthly bill go right ahead, it all comes out the same amount in the end.

WelshLad

Full, paying monthly costs more - it's a loan.

Emily

if you choose to pay monthly .... and then after a few months or so you can afford to pay it all off, can you pay the rest off in one lump sum?

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