What's the best way to pay for car insurance, monthly or annually?

What's the best way to pay for car insurance, monthly or annually?

Asked on 11 July 2017 by Chris30

Answered by Tim Kelly
It depends on the level of interest that is applied to the premium to pay in monthly instalments. These can often be as high as 30 per cent. Personally, I always pay in full so I don't have to pay this interest. If you cannot afford to do this, I would recommend getting a credit card that allows interest free balance transfers or is interest free for a year and then pay on that. I would then pay it off in equal instalments. You can save a great deal of money doing it this way. Paying on a credit card also affords a lot of consumer protection under the Consumer Credit Act. This is the only time I would use a credit card though and I would not do it if it had any interest on it.
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