There are a number of ways that you can pay for your classic car insurance so it would be a sensible idea just to spend a little time going through these options with you so that you are fully aware of what choices you may have. One of the reasons for doing this is because the option that you choose may well affect the premium that you end up paying.
Your classic car insurance premiums may be less if you pay annually rather than monthly
Some classic car insurance providers have different ways that you can pay your premiums so it is important that you check this with them. For instance, some will still provide the option to pay by cheque, some by standing order, others by debit or credit card but most allow you to pay be direct debit. The later option is probably the most cost effective from the insurance provider’s perspective and they would argue that this is one of the factors that enable them to contain their costs that they then pass on to you in the form of lower premiums.
From your point of view, you may find that if you are in a position to pay for your classic car insurance on an annual basis rather than each month the total cost of your insurance costs may be lower. The reason for this is that when you pay monthly the insurance company will often charge you interest on the basis that, to all intents and purposes, they have provided you with the cover and allowed you to pay for the cover on a monthly basis.
Therefore, if you are able to pay for the premium up front you will not have to bear any interest charges thus resulting in you paying less for your classic car insurance than if you were paying on a monthly basis. In the current financial climate, if you do have the funds available, paying your classic car insurance premium all in one go is worth serious consideration.
