Monthly Car Insurance - A Cost-Effective Mode of Driving

05/01/2011

As it stands UK car insurance premiums have risen a staggering 40 percent on average this year. Going into the New Year drivers are keen to find a more cost-effective mode of driving.

Monthly car insurance has been pushed as an alternative way of using your car by moneysupermarket.com. An increasing number of students want to pay their annual premiums in bitesize monthly instalments, but as a result UK car insurers tend to charge their customers extra for the privilege of doing so at an additional increase of as much as 10.13 percent.

Steve Sweeney, head of car insurance at moneysupermarket.com, insists drivers need to be aware of the growing costs of running a car.

"Running a car doesn't come cheap, and many of us will be looking for ways to trim our outgoing and make our finances more manageable. Paying for your car cover on monthly basis is a good way of keeping your initial outlay for your car insurance down. However, while this may be more convenient compared with forking out for the whole year's premium, it is crucial to make sure you are aware of the additional costs involved", he said.

One alternative to forking out the full premium in one go is to use a zero percent purchase credit card, allowing you to pay the original price of your policy and pay off the balance in manageable chunks.