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Paying Monthly Insurance costs can be a very major item in a budget, particularly for younger people who want to insure any car other than the smallest and most sedate models on the market! Putting their hands on many hundreds, or occasionally even thousands of pounds can prove very difficult and often the siren call of 'free credit' or monthly payments can be very attractive. Very often the ability to spread the cost of insurance over the year instead of paying out the whole lot up front can be very tempting, but there are pitfalls. looking for insurance for a learner driver? Click here for landlords house insurance The first one of course is that you get nothing for nothing in this world and if an insurer is willing to take the risk that you may simply stop making repayments a little further down the line then you have to be a little wary of the reasons why. Does the cover match that of this company's competitors? They may have taken something out in order to bring their own costs down. Was the premium higher than it should have been in the first place? Credit is difficult to get an expensive, so if an insurer is prepared to let you have some for free then be on your guard! Quite a lot of companies do offer monthly repayments, but very only provide these at additional cost. If you are tempted to buy a policy on these terms I suggest you take a careful look at the extra charges that you will have to pay for the privilege of spreading payments over 12 months. Very often these extra charges can be quite heavy and you may find it more worthwhile to either dig deeper into your pockets, or even take out a short term loan (if you can find one) and pay the full premium in advance. That way, not least of all, you can rest assured that you will be covered by your policy for the next year, which may not be the case if you pay monthly but inadvertently miss a payment or two! |
