One-Off Car Insurance Payments vs Monthly Installments

One-Off Payments

Paying for your car insurance in a single payment will usually work out cheaper than paying in monthly installments. The only potential downside of paying in one installment is that any alterations made to the policy will also have to be paid in a single payment.

Monthly Installments

Car insurance companies allow you to pay for your insurance policy in monthly installments. Your premium will be financed over the insured period which will result in a higher total cost as it will be subject to interest. The obvious advantage of paying for car insurance monthly is it makes it more affordable, the other benefit is if you make a change to your policy such as declaring a modification, your monthly payment will just go up instead of having to pay for it in one go.

If you are considering purchasing a car insurance policy on finance you should consider whether there are cheaper ways of funding it e.g. a bank loan or a 0% credit card offer.