[]   Your account

Can I save money by paying for home insurance annually?

Can I save money by paying for home insurance annually?

When comparing your home insurance costs you’ll typically be given two payment options – pay the total balance up front or spread the payment over monthly instalments. But which is better value?

Chris King
From the Home team
2
minute read
posted 18 FEBRUARY 2020

Pros and cons of paying for home insurance annually

You'll typically save money by paying for your insurance annually as opposed to monthly. Annual payment has pros and cons though, so you should consider whether it’s suitable for you.

Pros:

  • Save money – paying for home insurance in one lump sum is typically cheaper than paying through monthly instalments. Insurance providers often charge interest on monthly payments, so you’ll pay back a little more than if you paid upfront.
  • Have more choice – not all insurance providers allow customers to pay monthly (although most do), so by choosing to pay your home insurance annually you might get to pick from a few more deals. 
  • Enjoy more convenience – if you pay for your home insurance annually you’ll make one payment and that’s it for the year.

Cons:

  • Upfront payment – you'll need to pay a lump sum for the year all at once, and you might not have the spare cash.
  • Harder to budget – you need to make sure that you have enough to pay for another year when your annual payment runs out.

Benefits of paying for home insurance monthly

The major advantage of paying for your home insurance monthly is that you can spread the cost over manageable payments. This can make household budgeting easier as you can add the amount to your monthly outgoings.

Comparing home insurance

Whether you think you want to pay for your home insurance annually or monthly, it’s always a good idea to compare prices. It’s simple with Compare the Market – compare home insurance now.

Compare home insurance

Compare home insurance

Get a quote in minutes and you could start saving

Get a quote
Get a quote in minutes and you could start saving Get a quote

comparethemarket.com uses cookies to offer you the best experience online. By continuing to use our website, you agree to the use of cookies. If you would like to know more about cookies and how to manage them please view our privacy & cookie policy.