You can pay for car insurance monthly
Arrange payment in installments with the car insurance company
Which installment payments are possible?
If the policyholder agrees to pay in installments, he can select different payment intervals. As an alternative to the one-off annual payment method, insurers offer monthly, quarterly and semi-annual payments. In the case of high insurance premiums in particular, the payment can easily be broken down into pieces.
What is the cheapest way to pay for car insurance?
The insurance companies initially assume that the gross premium will be paid annually, due in advance at the beginning of the year. There are no surcharges for a single payment.
Which payment method is the most expensive?
It is common for a surcharge to be charged for car insurance when paying in installments. The amount of the surcharge is based on the frequency of the installments. The monthly premium is the most expensive. A surcharge of ten percent is not uncommon. In the case of a quarterly payment of the premium, the companies usually charge a five percent surcharge, in the case of half-yearly payment an additional three percent.
Assume the annual contribution is 750 euros. The following picture then emerges for the installment payments:
- Semi-annual payment: 386.25 euros, 772.50 euros per year.
- Quarterly payment: 196.88 euros, 787.50 euros per year.
- Monthly payment: 68.75 euros, 825 euros per year.
It can be seen that the financial convenience has its price. A difference of 75 euros per year with a monthly payment compared to a single payment per year gives cause for concern. On the other hand, it cannot always be avoided.
When is it worth paying in installments?
The answer to when it makes sense to split the payment of the car insurance into several installments is obvious. At the beginning of the year, other payments are usually due, which are incurred once a year. The 750 euros for car insurance in our example then hurts. Before the account goes into the red and overdrafts averaging ten percent, it is economically more understandable to accept the premium of three or five percent for the half-yearly or quarterly payment.
What is recommended?
If you want to save on car insurance, you can set the course before you buy a car. The expert committee of the insurance industry prepares an analysis every year with regard to the accident frequency of the individual vehicle types. This results in the classification in the type class directory, which in turn represents a component in the calculation of the insurance premium. The VW Golf VI is not checked for accident frequency across the board, but each model variant is checked individually.
Thirty years ago, the more horsepower, the more expensive the premium. This fact has changed fundamentally today. There are cars that are classically used by novice drivers, but which, especially against the background of higher accident rates, also bring with them a higher insurance premium. These cars usually include older small car models such as VW Golf, Opel Corsa, Ford Fiesta, Fiat Punto or Uno, or the Nissan Micra. The list is long.
It is worth making a comparison in advance, especially for novice drivers or for cars that are initially classified as damage-free class 2 as a second car. This is quite easy and, depending on the number of cars to be checked, does not take long. In the vehicle insurance comparison, the vehicle type can also be selected without a vehicle license. In this way, you can filter out the cars for which an installment payment in the car insurance can be omitted or is limited to half-yearly payment.
Car costs are made up of several factors
If you want to make a particularly big effort, you can also see how high the average consumption is and how the workshop costs are estimated on average. The combination of operating costs - fuel - insurance then determines which car is really the cheapest in the end.
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