How to avoid hidden costs of car insurance

What’s the best way to avoid the hidden costs of car insurance?

While comparing quotes is a great start to getting the right deal, always make sure you watch out for the other tricks that can stealthily bump up the price you pay

1. Many people struggle to pay for their car insurance in one go. So paying in instalments to break down the cost into 10 or 12 more manageable chunks is often popular..

But this comes at a price. The insurance company is effectively lending you money, and will charge you interest for doing so.

This interest can be set at 25% or even 30% of the cost of your insurance, which adds a hefty whack on to your price. If you can afford to pay upfront rather than by instalment, or even on a 0% credit card then paying that off over the year, it’ll be cheaper

2. Some insurers also charge fees for setting up your policy, and even charge you for buying over the phone call rather than online. Keep an eye out to avoid paying these sneaky costs.

3. Finally, you’ll also be charged for cancelling your insurance.

If you’re changing your car and still need insurance, ask your insurer how much it would cost to transfer the policy, rather than cancelling and taking out a new one.

But before you do, run a comparison quote for the new car. You might find a new policy from a different insurer is still cheaper, even with the cancellation fee.

Did you enjoy that? Why not share this article

SAVE MONEY NOW

Other articles you might like

Popular guides