Being a motorist is as expensive as it has ever been, with the cost of fuel making its highest increase for 18 years in May. Add to that the cost of car insurance, tax, MOT and servicing, drivers are keen to make savings or spread costs anywhere they can. When it comes to paying for your twelve month car insurance premiums, you can either pay monthly or pay annually, and there are a few things you can do to make sure you aren’t paying too much for your policy. Read on to find out whether you should pay monthly or annually for your car insurance, and how you can make your premiums more affordable.
How Should You Pay For Your Car Insurance?
When you take out car insurance, you usually have the option of paying on a monthly basis, or paying for your entire annual cover up-front. Whether you pay monthly or annually for car insurance depends on your preferences and circumstances. Overall, it is cheaper to pay for twelve months up-front, so this may be the best option if you can. But if you can’t afford the initial layout all in one go or would prefer to spread the cost, you can pay monthly. This costs a little more altogether due to interest being added on, but for many people it is a more manageable way to pay. If you pay monthly, your insurance policy will expire on the renewal date after twelve months. After you have been sent your renewal details, many insurers will automatically renew your policy unless you request to cancel it before the policy expires.
It is worth noting that paying monthly for your insurance does not mean that you have a monthly policy. You will still be tied into a twelve month contract and if you cancel your policy before it expires, you will be charged a cancellation fee.
How Much Excess Do You Want To Pay?
Car insurance excess is made up of the compulsory excess set by your insurer, and the voluntary excess you agree to pay on top of that. You will only need to pay excess if you make a claim, and agreeing to a higher voluntary excess may reduce your premiums. However, you need to make sure that you would be able to afford the amount if you did make a claim. Read our article “Car Insurance Excess Explained” to find out more.
Do You Need Any Extras?
Car insurance policies differ between providers, and some levels of cover might come with your policy as standard, while others might cost a little extra to add to your policy. Make sure you know what’s covered in your policy and don’t pay for something you aren’t going to need. Extras that may or may not be included in your policy, or that may be available for an extra charge, include windscreen repair; personal belongings and gadget cover; key loss cover; legal expenses; courtesy car; protected no claims discount; driving abroad, and more.
Are Your Keeping Your Vehicle Secure?
Other ways to save on your car insurance include keeping your car in a safe place such as on a driveway or in a garage overnight, or having an alarm, immobiliser or steering lock fitted. Keeping your vehicle as safe as possible can give you extra peace of mind and help to keep your insurance premiums down. However you decide to pay for your insurance and whatever type of policy or extras you choose, make sure you are comfortable that your choices are right for your own specific driving habits and financial situation.