Car insurance premium: pay annually or monthly?
You have to pay a premium for your car insurance. The car insurer offers you the option to pay the premium per month or year. But what exactly is the cheapest or most convenient??
Affordable car insurance premium
Would you like the most competitive premium for your car insurance? Then it is advantageous to pay the premium per year. You often receive a discount on the premium of around 3 to 5%.
For example, you have a Peugeot 208 from 2014. You fully insure this (all risk). You can then pay a premium of 46 euros per month, which amounts to 552 euros per year. If you paid per year, the premium would come to 532 euros. So with the annual payment you already save 20 euros.
Large amount in one go
The biggest disadvantage is that you have to pay a large amount of 470 euros in one go. You can of course also choose to save the premium amount together each month. This way you benefit from the discount, but you don’t have to pay the entire amount at once.
If you pay per year, you can opt for an automatic debit or giro collection form. If you use the giro collection form, you must remember that you are paying the premium. With an automatic debit you do not have to think about this, but you must have enough money in your account. The monthly payment actually always takes place via automatic debit.
View now how much you can save on the premium of your car insurance: compare your car insurance