Maintaining the use of a car can be one of the most expensive outlays that a person will endure throughout their life. In addition to the cost of the car itself, there are fuel costs, taxes, maintenance costs and of course car insurance.

Car insurance premiums vary from driver to driver and are calculated from various factors such as driver age, vehicle type, vehicle age, vehicle efficiency and the number of claims the client has made in the past.

Due to car insurance generally being an expensive part of owning a vehicle due to the high risk involved in operating one, insurers often provide alternative methods of payment rather than one lump sum payment for a year long policy. In the eyes of the insurance company, this helps lower the level of illegally uninsured drivers by making it more affordable to them.

Many insurers offer monthly car insurance whereby the premium is paid on a monthly basis, twelve times a year, which is designed for the convenience of the client. However monthly car insurance premiums often work out to be more expensive over the course of the year compared to paying the premium in a lump sum. This is a direct result of the actual privilege of being able to pay monthly. One factor to look for when researching for monthly car insurance quotes is to see if the insurer charges interest. Some do, whereas some offer zero interest. It is worth noting that some people will be declined the ability to pay their premium on a monthly basis due to poor credit history.

Additionally, if a driver is unaware of the duration that insurance is required for, many insurance companies offer ‘month-by-month’ insurance plans that are ideal in those circumstances. Month-by-month insurance offers a vehicle to be insured on a short term basis (usually between one to twelve months) and is flexible as it can be cancelled at any point within the specified time frame. There is usually no penalty for cancelling the policy at any time.