Monthly vs. annual car insurance

Paying for your car insurance

When it comes to paying for your car insurance, there are two ways you can look to do it.  Firstly, there is the option to pay in full.  This means that you will pay the price of the annual premium at once and consequently you will be covered for a year’s worth of insurance.  The other way is perhaps the more common method of payment.  This is via monthly instalments.  Monthly payments are smaller chunks paid throughout the year, though they do not provide just a month’s worth of cover at a time.  The policy will remain a 12-month contract. 

Paying annually

Paying a lump sum at the beginning of your policy can be a big up-front cost and unmanageable for some people.  The average insurance premium at Quote Detective is in the region of £2800, (we do some pretty non-standard risks!) You can see why so many people opt for monthly instalment payments

Monthly instalments

Monthly payments will require you to set up a monthly payment to your insurer, paying a portion of your premium.  This will include an initial deposit, followed by 10 monthly payments.  This allows you to spread the cost of your insurance over several months.  This is opposed to the initial stress of paying in full.