Looking for car insurance? Want to find the right policy? Well, part of finding the right car insurance deal is finding the right payment option. Read on to discover how more options are becoming available, helping you, the consumer.

A single payment or more?

Crucial to any decision you make about your car insurance, is how frequently you want to pay for your cover. In the UK, the crux of the matter is whether you want to pay with a single transaction or monthly, though more options are gradually becoming available. However, if you can afford it, a single payment will often prove to be the most cost effective, as you won’t incur any additional interest payments or charges.

Monthly payments

Paying for your car insurance by monthly instalments monthly can prove more manageable than a single payment, however overall it can cost more. How so? Well, monthly payments mean you often incur additional interest charges, which could add a significant amount to your insurance bill overall. Paying monthly in effect means that you are accepting a loan from your insurance provider and that can mean paying interest on your finance, hence the increased amount you pay.

However, monthly payments do have some advantages, helping you to manage your budget and in some ways making the payments easier and more straightforward (if a little more expensive overall).It may be that monthly payments are the most manageable and convenient payment option for you.

In the UK, most car insurance policies have been restricted to a single payment or twelve monthly instalments; however, things are beginning to change with more flexible options becoming available, and these could benefit you.

Flexible payment options

You’ve probably only used them for your phone, but now you can use them for your car insurance, a pay-as-you-go option.

If you’re a young driver, who’s recently qualified, then a pay-as-you-go insurance policy can be a good option. These policies harness “black box” or telematics systems to store intelligence about your driving including the number of miles driven; charging you simply for your usage. So the more you drive, the more you are likely to be charged. However, these policies can work as out as a cheaper alternative, especially for young or newly qualified drivers. A pay-as-you-go policy is based less on probabilities and industry averages; and more on you as an individual driver.

Like all insurance policies, it pays to shop around, and in the case of these policies, you may find you are charged more for driving at peak times or have a basic monthly charge on top of your mileage charges. However, you also have more control over your bill. You can cut your costs by driving less or at times of the day when you are charged less. Also, with insurances policies that employ telematics systems, you’ll often have access to online reports that will give you an insight into your driving habits too.

In fact, pay-as-you-go policies can have an appeal for low mileage drivers of all sorts, newly qualified or otherwise; and as time goes on, more insurers are offering such policies.

Methods of paying

Methods of paying for your insurance are pretty much reduced to a one-off payment using a debit or credit card (the latter may incur an additional charge too) or a monthly direct debit that is taken straight from your bank. Few insurance companies now accept payments by cheque or cash.

When it comes to sorting out your next car insurance deal, just check that there are not any hidden or additional charges that you’re not expecting, with your chosen policy or payment option, before you finalise the deal.

Need short term car insurance in the meantime?

If you’re considering your care insurance options and need temporary car insurance in the meantime, then contact Call Wiser insurance, they’ll assist you in finding short term cover from 1 up to 28 days. Thus, giving you peace of mind, while you look around for the right insurance and payment deal for you.

Remember, driving without insurance is illegal, as stipulated by the Road Traffic Act 1988. Having no appropriate insurance in place could result in you receiving a huge fine, getting six penalty points and a driving ban. So ensure you are covered.

Find the right deal for you

When looking for your next car insurance deal, shop around and talk to an experienced insurance broker to find the right policy and payment option for you. An insurance broker will not only be able to compare a wide range of insurance providers for you but will also have the knowledge to get the best deal for you, from multi-car deals to discounts for safe drivers.  It’s an easy and efficient way to find a cost-effective car insurance policy. So don’t just renew automatically, shop around to find the best car insurance deal.

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