Paying monthly for a car insurance policy (get
more details here) is a very popular option, since
many people simply cannot, or do not wish to, pay for a large
premium in advance. It may help with budgeting, but there are
Do car insurance companies accept monthly
Most of them do. However they can be
selective. If you have a poor accident record, one or more
motoring convictions, live in a postcode with a high level of
claims, or are young and inexperienced driver you may not
actually be turned down for monthly payments, but it is likely
that you will either be asked to pay a large deposit, or you may
find the interest rate increased.
Some insurers, however, don't accept monthly payments at all and
insist on full payment of the premium right at the start.
Unfortunately these companies tend to be those who offer the
best value cover; particularly to older and more experienced
Can young drivers pay monthly for car
Yes they can, subject to certain
conditions, and the majority of motorists under the age of 24
do, in fact, pay for their policies in this way. This is hardly
surprising since a premium for a younger driver can easily be
well into four figures. Again, though, they may be charged extra
Is it possible to pay monthly with no
Sometimes individual insurers may offer
special no interest deals. However these almost invariably only
last for the first 12 months. If you continue with a monthly
paid policy at renewal time you will probably find that their
usual service or interest charges will be applied.
Can I pay monthly with bad credit?
This will be up to each individual insurer
to decide. A lot depends upon just how bad a credit rating is.
They may increase the initial deposit, or the interest charge,
or both. It is vital however that if a policy is taken out with
the premium paid by agreed instalments, that these payments are
stuck to firmly. If a payment is missed it is possible that
cover could be withdrawn and this could have very severe
consequences. It could not only mean the possibility of the
motorist driving without insurance, but also facing the
possibility of severe difficulties in finding insurance in the
Is it possible to drive uninsured?
The penalties for driving without
insurance are considerable. Firstly, it is likely that the car
that the uninsured person was driving would be impounded. This
would mean having to get it insured before it could be released,
and since the vast majority of policies specifically exclude
cover for impounded vehicles, a specialist policy would have to
be bought and these can be very expensive indeed. Failing to get
a car out of a police pound within a couple of weeks of it being
seized can, and usually does, result in the vehicle being
confiscated completely and then either sold or crushed for
To sum up:
Anyone who can afford to do so should buy
car insurance in the normal way, by paying for the policy in
advance. This not only saves interest and other charges, but
also means that, since some of the best insurers do not offer
monthly payments, there would be a wider choice of policies to
Paying monthly may be a necessity for many drivers on a tight
budget, but if at all possible it should be avoided.