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Drivers pay an extra £73 a year by spreading the cost
The average driver shells out an extra £73 a year by spreading the cost, rather than making a one-off payment.
This drives up the average price of cover from £549 a year to £622, said MoneySupermarket.com.
Almost half pay monthly and the number is rising, even though insurers charge interest as if this was a loan.
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Making a one-off payment could work out better for your pocket
MoneySupermarket’s consumer affairs expert Kevin Pratt said: “Paying for your car cover in one lump sum is a big ask so it is no wonder millions opt to pay monthly.”
Pratt said if you cannot find the money up front then you could pay for your premium on a credit card that charges zero interest for an introductory period.
“Aim to pay off the balance within 12 months so the slate is clean for next year’s premium,” he added.
Car insurance monthly instalments not a smart move have 178 words, post on www.express.co.uk at 2016-10-26 15:01:53. This is cached page on WBNews. If you want remove this page, please contact us.
