With car insurance costing over a £1000 in some instances, motorists are requiring better way to meet this cost.
Pay it over the year
With insurance costs being so high, it could be more beneficial to spread the cost over the year as you can manage your finances more prudently and perhaps even enhance your cover to get a higher level of security.
For example if the car insurance premium for your vehicle is costing you £1200, then that will equal to £100 per month over the year. However, it is important to note, that paying the amount upfront often results in paying a reduced premium, as discussed below.
Instalment plan charges
Nearly all insurers charge customers for offering them the convenience of paying the premium over the year. So before selecting the insurance you need, be sure to check out the different rates of interest and fees. To reiterate from the above, car insurance will most likely work out cheaper if you pay the amount upfront as appose to average the cost over the year.
In most cases, insurers will require the motorist to put forward a 20% deposit, in some cases more, for taking up the pay via instalment option. As you can imagine, if you are restricted by budget than meeting this requirement can be very expensive especially if the premium is very high in the first place i.e. if the premium is £1200 than a 20% deposit equals to £240.
However, in a very competitive market place, insurers have begun reconsidering their options to win more customers. They understand that 20% can be difficult for some motorists and by offering 0% deposit options, they could win more business. Typically the no deposit car insurance cost is about the same as with insurance deposit but you should compare all your options in the market. To quickly see some of the options available to you in the car insurance market
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