So I can spread the cost of my car insurance?
Yes, most insurance providers now let you spread the cost of your yearly car insurance, usually over 12 monthly instalments. But be aware that this option is usually more expensive than a one-off payment as interest might be charged on the instalments. Your first instalment is often slightly higher than the rest of the payments, but your insurance provider should give you a breakdown so you’ll know exactly how much you’re paying each month.
You’ll need to decide, based on your personal circumstances, whether it makes sense for you to spread the payments or whether you can afford to pay the full amount upfront.
Alternatively, you could pay for your car insurance with a credit card, but you might have to pay an administration fee in addition to the cost of your premiums – and you’ve got to make sure you can pay off your balance so that you don’t end up with additional interest charges.