Recently published research has suggested that drivers in the UK choosing to purchase their motor insurance up front rather than on a monthly basis are significantly better off. Newly released figures show that motorists paying for their motor insurance policy monthly pay as much as 40% more than they would had they paid for a year’s cover upfront.
Of the UK’s 33 million motorists, it is thought that as many as 13.2 million drivers opt to pay for their car insurance monthly. This means that around 40% of all UK drivers are paying considerably more for their car insurance than they would if they were to pay annually. Currently, the average cost for car insurance for UK motorists that pay for their insurance annually is £778. Paying monthly could increase that car insurance premium to £953.
This potential increase of £175 will surprise many. Whilst the majority of people may be aware that paying monthly for a car insurance policy is more expensive than paying annually, many would be shocked at just how much more expensive paying monthly can cost over the course of a year. For car insurance providers this tactic has proven to be extremely profitable.
Whilst the obvious solution to avoid these increased costs is to steer clear of paying for car insurance policies monthly, this is not a viable solution for many motorists in the UK. In many cases limited cash flow and increasing insurance costs mean that many drivers in the UK can’t afford to pay annually for their insurance. To try and reduce insurance costs all motorists should pay for their insurance policy annually where possible and shop around to ensure they get the best value motor insurance policy available to them.
Before purchasing your motor insurance be sure to
compare car insurance policies from a range of insurers. By completing a
car insurance comparison, it is likely that you will find the
cheapest car insurance available to you.
