Save money by paying your insurance annually
09/06/2008 by Carla Walsh
Recent research conducted by uSwitch.com has shown that car insurance providers are netting nearly £624 million a year from the 13 million motorists who pay their car insurance by monthly instalments as opposed to one annual payment. Insurance providers charge an average APR of 23.8% and this could be another added cost for motorists who have already been hit with recent petrol price hikes.
Ashton Berkhauer of uSwitch.com provided these top tips for saving money on you policy:
- Always shop around to ensure you are getting the best deal on your car insurance policy – some insurance providers, such as Virgin, don’t charge for monthly installments
- If possible pay the full amount of your insurance up front to avoid paying unnecessary charges
- If you can't afford to pay the full amount of you car insurance up front check your insurer's APR and shop around for a more competitive alternative or look at 0% credit cards
- To avoid any nasty surprises always check your policy documentation thoroughly and make sure you understand what you are covered for and what your excess is should you be involved in an accident.