Following on from the news that car insurance premiums have risen at the fastest rate for a decade, it’s now been revealed that UK drivers who sign up to pay-monthly car insurance policies are actually dramatically worse off than those who pay up front.
The latest investigation was conducted by the AA, and discovered that, in paying on a monthly basis, some motorists are increasing the cost of their car insurance by nearly 40%, with some insurers adding up to £200 to their yearly bill.
Most motorists won’t even be aware that they are being left out of pocket by trying to spread the cost of their insurance premium with a monthly payment plan. The insurance companies, however, are raking in huge profits as there are a reported 13.2 million pay-monthly car insurance customers in the UK. Based on the latest figures, it’s obviously a good idea to try and pay upfront - however, with the recession in full flow and budgets at breaking point, it’s not always a viable option. It is always wise to shop around to make sure you get the best deal possible.
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