Car insurance companies typically charge customers extra to pay their insurance policies on a monthly basis. The average price increase over the original premium for a customer is around 10.3 per cent. However in some instances the increased costs can be as little as 5.35 per cent according to one expert.
Car insurance head for moneysupermarket.com, Steve Sweeney, stated that shopping around is the best way to find the cheapest monthly premium. Mr Sweeney stated that as running a car can be very dear at times many consumers look for ways to trim their outgoings in an effort to make their finances more manageable.
Mr Sweeney continued by stating that paying your motor car insurance on a monthly basis is one way to keep the initial outlay of funds down to a minimum. However he added that whilst paying monthly may have more convenience for consumers in comparison to paying an entire year’s premium up front, they need to be aware that additional costs are involved. Mr Sweeney also stated that customers need to exercise due diligence in finding a deal on the market that will be priced as reasonably as possible.
One tactic the insurance head recommended was the use of a 0 per cent purchase credit card as long as consumers have enough discipline to completely pay off the balance before the expiration of the promotional 0 per cent period. Otherwise Mr Sweeney stated that consumers will find themselves still paying once the initial policy comes up for renewal.
Industry experts agree with Mr Sweeney’s assessment, cautioning that neglecting to pay off the entire balance may result in having to pay a considerably higher amount.