(1) Buy a standard annual policy with a low deposit and monthly repayments

It used to be the case that yearly policies inevitably had to be paid for in advance with one single payment. Eventually one or two insurers decided to allow monthly repayments in order to boost their customer base in the short term, and others have now jumped on the bandwagon. The obvious advantage is that you sometimes need to pay out 1/12 of the policy at the outset, depending upon which company you choose to insure with, and if that is paid by credit card then you in fact have at least another month before the money comes out of your bank account. The disadvantage is that most companies charge extra for monthly repayments, so you need to shop around to get the best deal. Quotezone have a car insurance price comparison system which will give you quotations from a whole host of insurers who will be happy to accept monthly payments (subject to status, as usual) and you will be able to see which ones can offer you the best deals.

(2) Buy a month to month policy

It is possible to buy an insurance policy which is virtually identical to a standard yearly policy, but for the one vital difference; rather than running from year to year, it runs from month to month, and you have the option to cancel it at the end of each month. This makes it particularly useful if you only need insurance for a few months, or if you don't really know how long you will need it for. The way it works is quite simple; you pay for the first month, and then at the end of a month it is automatically renewed, unless you have given notice in good time for it to be cancelled. The advantage lies within its flexibility; the disadvantage is that it is more expensive, over a longer term, than many other yearly policies you can buy. In addition, the maximum time that the policy can last for is eight months, although you can take out a new policy at the end of this period if you wish. Nevertheless, it could save you a lot of money if you used it in the right way, for the right purpose.


(3) Buy a short term policy which lasts for a maximum of four weeks.

Nowadays you can buy car insurance for any period between just one single day and four weeks, and the documentation for it can be downloaded instantly so that you can print it out at home. Again, on a day-to-day basis this is a lot more expensive than a conventional monthly policy but if you only need cover for a car that you own or you are borrowing from, or lending to, someone else for a short time it could be a very convenient and economical way of staying covered and remaining within the law.

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