But whatever annual premium you are offered, it’s bound to hurt the wallet. In fact, just like car drivers, many bikers simply cannot afford to pay their annual premium upfront in one lump – and this is where monthly bike insurance comes in.
Advantages of monthly bike insurance
The main advantage of monthly bike insurance is that you can split up the cost of the annual premium into 12 manageable chunks. If you set up this payment as a Direct Debit to leave your account on payday, it shouldn’t prove too much of a financial strain as you go through the year.
Disadvantages of monthly bike insurance
However, monthly bike insurance comes with some downsides too. What you pay each month will not be as straightforward as taking your quoted annual premium and dividing it by 12. Insurers will charge you an interest rate for the privilege of paying monthly which means the total cost over the year will be more than your annual quoted premium.
The latest research from, MoneySupermarket found that the average interest charged on monthly bike insurance was in the region of 10%. However, in practice you may not notice this extra outlay. For example, if your premium was £400, that would equate to an extra £3.33 every month. In many cases then, it will feel like small price to pay for not having to find a significant lump sum.
So long as you pay your annual premium in full to your insurer – which is the only way to be sure you are covered at all times – there are several ways to go about it.
If you opt for monthly bike insurance, you can choose to pay by standing order or even make manual payments on a set day using your debit or credit card. In reality though, a Direct Debit, which comes out of your account automatically, is the most reliable way to ensure the payment is made. After all, if a payment is overlooked and you have an accident, your insurance will be invalid – which deems all your other successful monthly bike insurance payments a complete waste of money.
Paying for your bike insurance upfront annually however, is the only way to completely forget about it for a whole 12 months – until it comes to the time to renew (or better still shop around for a better deal). If you haven’t got the funds to hand though, there is always the option of putting the cost on a credit card that charges 0% interest on purchases. Providing you make the 12 monthly payments to the card over the course of the year, this is a way of still staggering the cost without paying a penny in interest to either the insurer or the credit card company.
Find cheap monthly bike insurance quotes
Whatever method you use to pay for your monthly bike insurance, one thing you will want to be sure of is that you get the cheapest premium possible. There are measures you can take yourself to reduce this cost such as opting for a less powerful motorbike, keeping your bike locked in a garage – or at least off the road – overnight, building up a decent no claims discount (NCD) and taking an advanced riding course, such as those run by the Institute of Advanced Motorists. These are just some of many bike insurance money saving tips which we suggest.
But once you have taken on these measures, the most crucial point is to shop around and utilise a monthly bike insurance comparison service such as MoneySupermarket to increase your chances of finding the cheapest quote. A little bit of time and effort can save you hundreds of pounds a year for exactly the same level of bike cover.