Monthly Car Insurance

Not everyone needs a fully comprehensive annual car insurance policy. There are often circumstances that dictate a different type of cover. You can get insured for a shorter period of time rather than cancelling an annual policy and starting up a new policy at a later date where you would incur a cancellation fee.

I have talked much on the subject of daily car insurance but not really mentioned about the other types of policy that are available to the motoring public. The other type of policy is monthly car insurance. This is a separate type of cover that can be taken out a month at a time. It is different in the fact that although it provides you with the same type of cover as a standard annual policy it has some other benefits.

Insuring yourself for a month at a time has several benefits which may appeal to different motorists under differing circumstances. The main benefit is the fact that this is truly a monthly insurance policy where you are covered for a month at a time. This means that there is no cancellation fee as you are not breaking any contract. Of course you couldn't get your money back if you used it for a couple of weeks and then stopped it.

You often hear this referred to as no deposit car insurance as you can pay monthly and not have to pay a deposit up front. If you took out annual cover you could pay monthly but you would be entering into a finance contract that would require you to pay a deposit. You may also have to pay an administration fee and as with many forms of finance cover the cost of the interest charges.

If you have tried to get daily insurance as a young driver you may have found that there are few if any insurers that will take you on. Typically under 21 daily car insurance is not readily available in the UK due to the lack of underwriters willing to underwrite the insurers policy.

The benefit of monthly pay as you go insurance is that you can get cover from the age that you are allowed to legally drive. This makes it a good alternative short term insurance. The other alternatives are taking on an annual policy or being added on as an additional named driver for a car.

You must be aware however that fronting a policy is illegal in the UK and will invalidate your insurance. Fronting is where an older family member usually a parent is named as the main driver to bring down the cost of the premiums. You must only be a second driver and not a main driver. Insurers have ways of identifying insurance fronting.

So paying month by month for your insurance is great if you want a way to be able to easily budget for your car insurance. A young driver can take out a monthly policy and after 8 months earn their first no years of claims which can greatly bring down the cost of an annual policy.