Looking for pay monthly car
insurance? The best policy to buy may be a short-term
one, or a full year's cover with a low cancellation
charge. You could use a good cheap insurance site such
as no deposit site www.Netfinity3.com
or cheap insurance price comparison site
Moneysupermarket for this. The most advantageous one
for you will depend on your circumstances.
Buying a short –
These are designed for people who
only wish to drive a car for a very brief period; they
last for a maximum of 28 days and can usually be renewed
at the end of these periods. Whilst insuring your
vehicle in this way, very economical they do however
tend to work out more expensive if you require cover for
more than about a month.
Buying a yearly
policy, with a cancellation option
Most insurers will allow you to
cancel a policy and receive back a proportion of the
premium. However, they all have rules and penalty
charges. We have seen penalties of around £25, but as
high as £100 or more with the smaller and cheaper
Which is the best
policy for you to buy?
You need to do your mathematics.
Firstly, get a quote for a single month policy; there
are numerous companies advertising these on the
Internet. Secondly, go to a good price comparison site,
which allows you to make monthly repayments and get
quotes from there as well. Find out how much the
cheapest insurers will charge you for cancellation; and
if the total cost (in other words, the first months
premium plus the cancellation charge) comes to less than
the cheapest quotation for a shortterm policy, this may
be your best option.
Advantages of one
– month policies
If you have a car accident whilst
you are covered under one of these policies you will
probably not lose your existing no claims bonus with
your current insurer. It is also simpler to insure
yourself for driving a vehicle that you do not actually
own at the time, provided that you have the owner's
You may find you have to pay a
hefty excess in the event of a claim.
Advantages of a yearly policy
You may well be covered for other
vehicles that you do not own, as well as your own car.
Disadvantages of a
It is likely that if you have an
accident which you make a claim for, you will be
expected to pay the full year's premium. This could make
your one month's cover extremely expensive.
If you pay the full premium in
advance it may well be much cheaper than having a
monthly paid policy since the insurer may well claim
finance costs as well as a cancellation charge. This
means that you may well have to, initially, pay out
quite a large sum of money in advance. Whilst you should
get most of this back eventually, you may feel that the
extra hassle simply isn't worth it.