Cheap car insurance experts point out that running a car is already a costly endeavour due to the increase in the price of petrol the country has been experiencing lately. Added on to that, the price of insurance can add even more strain on finances already strained to the breaking point, which has led many experts to recommend drivers to consider paying their premiums on a monthly basis to spread out the costs over a full year.
However, experts were quick to say that, although this may result in more convenience and manageability, it may actually end up costing motorists more in the long run due to the fees that insurers tack on to monthly premium payments. Drivers were also cautioned to do their part to shop around in order to make sure they find the deal that is the most reasonably priced, as well.
Paying your insurance premiums monthly could increase premium costs by a minimum of 5.34 per cent over the original premium price, research findings indicate. However, insurers charge differing rates, which could result in as much as 10 per cent or more in monthly fees.
There are ways to avoid paying these monthly fees, however, though they require careful planning and plenty of forethought on the part of the policyholder. One method is to pay your yearly premium on a zero per cent purchase credit card, and then finish paying off the purchase over time – though policyholders were cautioned not to get caught out by neglecting to pay off the premium before the renewal season comes around.