Drivers that have been reeling from the rising cost of keeping a car, such as spiraling petrol prices and car insurance rates, are looking for a respite from a costly 2011 by searching out the best way to control their costs in the New Year – include looking into paying their motor car insurance in monthly instalments.
According to research conducted by a leading car insurance comparison website, many motorists were distressed over the cost of motoring in 2011, with 42 per cent stating that petrol prices were the biggest problem they faced last year. In order to control costs, some drivers may be tempted to pay their insurance premiums on a monthly basis instead of all at once, but the lion’s share of car insurance companies charge fees for motorists who wish to do this- sometimes as much as 10.75 per cent over and above what it would cost to pay the premium all at once.
However, discount car insurance experts say that customers can find ways to make this fee much more manageable. The best way to do so, according to industry insiders, is to shop around, as there are some providers who only charge 5.34 per cent to its customers if they wish to make their premium payments in monthly instalments.
One expert said that one good way of making your insurance premium much more affordable is to parcel it out in 12 monthly payments instead of one costly lump sum, especially if you have a high premium. However, the expert was quick to warn that you will be responsible for additional fees if you choose to do so, but selecting the insurer offering the most reasonable price can help to minimise these extra costs.