Is it better to pay annually or pay monthly?
It's up to you if you want to pay annually or monthly for your car insurance, depending on your circumstances. But there are some pros and cons for each.
Paying annually:
- Once you've paid, that's it, you won't have to make monthly payments.
- It's often cheaper as most insurers charge interest or an admin fee if you pay monthly, which could cost you over 15% extra**.
- If you cancel your car insurance policy, it might take time for your insurance provider to process any refund you're entitled to.
Paying monthly:
- Smaller, more manageable payments make it easier to budget.
- Cancelling your policy cancels the direct debit. No more payments to make, and no refund needed. However, your insurer may charge you a cancellation fee.
- If you don't pay the monthly payments you risk invalidating your car insurance policy.
- Paying monthly is usually more expensive as insurance companies often add interest to the price.
**Based on Confused.com data June 2022 – Dec 2022
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- Save up to £407 on your car insurance*
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How to claim a reward
*Based on data provided by Consumer Intelligence Ltd, www.consumerintelligence.com (February '23). 51% of car insurance customers could save £407.05
**Single annual policy. Shell Go+ account required. Only one £10 fuel reward can be used per transaction and each can only be used on fuel purchases of £10 or over. HelloFresh 18+ subscription service. Geographical exclusions apply. T&Cs apply
How can I reduce my car insurance costs?
Paying annually is just one way to reduce your car insurance costs. There are multiple ways to get cheaper car insurance:
- Increase your voluntary excess
- Enhance your car's security
- Downsize your car
- Build your no-claims bonus
Increase your voluntary excess, which is the amount you pay voluntarily toward any claim your make. This could lower your car insurance costs. However, bear in mind that a higher voluntary excess means that you're likely to pay more towards any future can insurance claims.
Enhance your car's security with features like an alarm, immobiliser or tracker. This makes it harder to steal and shows your insurer you're less likely to make a claim for theft.
Downsize your car as expensive cars with powerful engines are a bigger risk for car insurers. They're more attractive to thieves and often expensive to repair. Consider getting a second-hand car with a less powerful engine.
Build your no-claims bonus and you could get discounted prices as a reward for several years of safe driving. For each year you go without making a claim, you get another year added to your no-claims bonus (NCB). The higher your NCB, the bigger the discount you could get.
We compare up to 150 trusted insurance companies to get you our cheapest deal in minutes
Types of car insurance
Black box car insurance
lets you prove you’re a safe driver, and save money on your policy, even if you’re inexperienced or seen as high risk.
Classic car insurance
offers cover for owners of classic cars. For insurance purposes, a classic car can be any car that’s older than 15 years.
Business car insurance
covers you if you use your car for work, including travelling between offices or across the country.
What our car insurance expert says:
With the cost of motoring going up for many, a car insurance with no deposit might seem like a good way to offset your spending. Unfortunately there's no getting away from having to make some sort of first payment. That doesn't mean good deals aren't out there to be found. Comparing quotes is the easiest way to find what's available to you.
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