Qualified advisers answering your
Financial Questions
call 0800 092 1245

Why paying your car insurance monthly could cost you an extra 40%!

A report by the AA has confirmed that motorists in the UK who pay their car insurance premiums monthly are paying the price in more ways than one. It has been revealed that some car insurance companies are adding up to 40% to the cost of a basic car insurance quote if the motorist decides to pay monthly. As a consequence the average annual car insurance premium of £778 (up 11% over last month) could rise as high as £953 if a customer decides to pay monthly!

This is a situation which has been shrouded in mystery for many years and the vast majority of motorists will not be aware of the significant APR added to the cost of their basic insurance policy. When you consider that an estimated 13.2 million of the U.K.'s 33 million motorists are paying their premiums on a monthly basis there are significant profits being banked by insurers which should ultimately not be there.

However, unfortunately for many UK motorists there is no choice but to pay on a monthly basis because of cash flow and the ever increasing cost of motor insurance in the UK. It does however confirm that where possible you should consider paying a one-off annual premium for your car insurance rather than spreading it over the 12 months.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details