When you arrange classic car insurance you will need to pay the insurance company for providing the cover. The most popular ways of paying are either by way of paying the whole year’s premium all in one lump sum or to pay the premium on a monthly basis.
A lot of motorists pay monthly by direct debit for their classic car insurance.
The later way tends to be a little more expensive as, in effect, you are borrowing the money from the insurance company and paying it back on a monthly basis. Many insurance companies add interest to the annual premium which is why it is often more costly to pay in installments.
So, why do some classic car enthusiasts choose to pay for insuring their cherished vehicles on a monthly basis when it is quite possible that they will end up paying more back? Well, in the main, it is possibly because they cannot afford to pay for the whole annual premium all in one lump sum up front so prefer, from a budgeting point of view, to pay monthly usually either by way of direct debit or standing order.
There are many people who choose to pay for this type of insurance on a monthly basis. Many feel more comfortable in knowing that every month there will be sufficient funds in their bank or building society current account to pay the direct debit to the classic car insurer. There will no doubt be some motorists who would find it difficult to make sure that, if they had chosen to pay for their classic car insurance annually by way of a lump sum, they have saved up the money on a regular basis to cover the cost of the cover.
We are sure that you will agree it is good to have so many classic car insurers providing either of these options as a way of paying for the cover.
