One of the UK’s most popular price comparison gurus, Moneysupermarket.com, have discovered that while we thought we were heavily penalised for paying for our insurance premiums in monthly instalments, paying this way could, in fact, bump up the overall cost of the policy by as little as 5.34 per cent if they utilise the comparison tools offered by
car insurance comparison sites like MoneySupermarket.com.
As the cost of car insurance premiums i9ncreased by 31 per cent by the end of 2010, and with similar rises set to occur overall for 2011, it’s now more pertinent than ever to maintain a manageable insurance plan, and more and more people are now therefor opting to pay for their premium in monthly instalments. But according to moneysupermarket.com, some drivers aren’t seeking out the best deals, and could be losing out on hundreds of pounds over the course of a year.
The UK’s premier comparison site examined the options offered to customers who are looking to pay in monthly instalments, because it’s a sad fact of the industry that most insurers charge their customers for this privilege to make up the cost of the interest they’re forced to pay over the year-long period. Those who do opt to pay by monthly repayments should brace themselves for a hike of 10.68 per cent on the actual cost of the premium.
isn’t cheap, made worse by the rising fuel costs we have seen recently. The cost of car insurance can be a huge strain on your finances so paying for your car cover on a monthly basis is a good way of keeping your initial outlay for car insurance down. However, while this may be a more convenient and manageable way to pay for your cover, it’s crucial to make sure you’re aware of the additional costs involved. It is also necessary you scour the whole market to ensure you find the most reasonably priced deal. Insurers can also play a part in helping motorists by not charging more than they need.
Mr Harrison also highlighted other ways of dodging these hefty levies, such as suggesting the use of a zero per cent interest credit card: “By putting the cost of the premium on to a zero per cent purchase credit card, drivers can pay for their policy in monthly instalments without paying interest. There are a number of zero per cent purchase cards on the market, so if you are eligible, you’ll only pay for the original price of your policy. However, you need to be disciplined if you use a credit card, and aim to pay off the balance before the end of the promotional period, and within 12 months if the promotion is longer otherwise you will still be paying when your insurance is up for renewal.”
