A simples guide

Can I save money by paying my home insurance annually?

When comparing your home insurance you’ll be given two options when you come to pay for it: pay the whole balance as a lump sum, or spread the payment over monthly installments.

There are pro’s and con’s to both options as we shall see.

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The benefits of paying for your insurance annually

- Price. Yes, you will typically save money by paying for your insurance annually as opposed to monthly. Another way of looking at it is that your insurance provider will charge you more for the privilege of paying monthly.

Our data shows that between April-July 2016, paying your home insurance with one lump price was on average £22 cheaper than paying monthly installments. This isn’t always the case but is the majority of the time.

- More Choice. Not all insurance providers allow customers to pay monthly. That means that by opting to pay your home insurance annually you give yourself the pick of more deals. Potentially, these could be the best deals available as annual payment is the standard option offered by insurance providers.

- Convenience. If you pay for your home insurance annually you’ll make one payment and then that’s it, it’s out of the way for another year.

 


The benefits of paying monthly

- Spreading the cost. Obviously, if you’re happy to pay more for your home insurance, the principle benefit of spreading your home insurance is that you’ll have no large outlay, and spread the cost over more manageable monthly payments. For some people this can be a big help with household budgeting.

Regardless of whether you pay for your home insurance annually or monthly, it’s always a good idea to compare prices. It’s simple to compare deals with our home insurance comparison service.

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