We all know that car insurance for young drivers is a big hurdle to getting on the road, so you should consider the ways in which you can pay for your premium and how this can benefit you.

You will find that most car insurance companies will give you more competitive prices if you pay annually (a one of payment), as apposed to paying for your premium on a monthly direct debit basis.  In some cases they will not even give you the option to pay monthly, which is the case with companies such as Elephant.

When you pay monthly you are effectively letting a finance company pay for your car insurance and then you are paying them back each month with a charge on top.  Now, obviously we understand that paying some premiums annually is impossible due to the size of the premium. So you would be expected to make some initial payment / deposit followed by a set finance plan, say 10 - 12 instalments.

Some companies can offer flexibility around the deposit amount.  So if you can afford to put down a larger deposit that originally suggested this will reduce the amount of premium that will be going on to finance and reduce the amount of your monthly payments.

If you can afford to pay for your premium on an annual basis you will not suffer from the interest rate that will occur by paying monthly. Give it a go!

This article was written by Only Young Drivers