Most insurers offer the option to pay your car insurance premium in monthly instalments or as an annual lump sum.
But what’s the difference?
This option can help you manage your budget by spreading the cost of insurance over the year. However, it’s essential to know that some insurers may charge interest for this payment method, making it more expensive in the long run.
Paying your premium upfront can save you money, as many insurers offer discounts for annual payments. It also eliminates the risk of missing a monthly payment and potentially having your policy cancelled.
Consider your financial situation and cash flow when deciding on the payment method that works best for you.