• Interest will most likely be charged on direct debit instalments, which could end up costing you between 10% to 25% more over the course of the year.
• If you decide to pay your car insurance with a credit card, you may have to pay an administration fee in addition to the cost of your premiums. You’ll then have to make sure you can pay off your balance so that you don’t end up with additional interest charges on your credit card.

How else can I save money on my car insurance?

Spreading the cost of your car insurance can help if you’re on a budget as long as you’re aware of the potential overall costs. However, there are other ways to save money on your car insurance, for example:

• Increasing your voluntary excess.
• Limiting your annual mileage.
• Consider telematics insurance.
• Building up a good no claims discount.
• If you’re a young driver  and you’ve just passed your test, consider taking a Pass Plus advanced driving course.

For more ways to reduce your car insurance costs, check out our top tips for cheap car insurance .

Compare car insurance quotes

Our car insurance price comparison service is an effective way to compare a variety of insurance providers and get an overview of the deals available. By simply shopping around and comparing quotes with us, you could save up to £261* on your car insurance premium.   

*Based on Online independent research by Consumer Intelligence during November 2018, 50% of customers could save up to £261 on their car insurance premium.