Car insurance monthly payments

Some providers market their pay monthly car insurance policies as “no deposit car insurance”. But this simply means the total cost is split equally over the 12 months of the policy term. You will still have to make the first, albeit potentially smaller, payment to get insurance. Does paying for car insurance monthly affect my credit score?

Pay monthly with no deposit With annual car insurance you either have to pay for the whole thing upfront, before you've even taken your first drive. Or you get given a higher price to pay monthly.

But generally, the APR on paying monthly is between 15-35%. In some cases, it would be cheaper to take out a loan, use that to pay for your car insurance in one annual instalment, and then make repayments on the original loan. Read more The (many) things that affect the price of your car insurance. Cancelling your car insurance when you pay monthly