Pay car insurance annually or monthly? So you save

Before the alternating season begins

Save money with the car insurance without terminating

When the alternating season begins, insurance companies offer cheap car tariffs for your car. To save costs, it is worth taking a look at this detail.

The big change of insurance at car insurance begins towards the end of a year. As of November 30th. the offers of the insurers are usually the cheapest. The competition between the insurance companies for new customers can give car buyers advantages through the lower price level.

All you have to do is terminate your old insurance company on time in order to be insured with the new policy on January 1 of the new year. However, there is already a way to save money on insurance contributions in advance – and that without changing insurance.

For most insurance companies, the contribution payment for vehicle insurance companies is possible annually, every six months or quarterly. Some providers even accept monthly installments. With a staggered payment of the annual fee, however, the total costs for insurance increase. In a study by Finanztip, sample customers were able to save eight percent if they paid their contribution in a total annual instead of in monthly installments.

Seven percent savings were on average when customers switched from a quarterly pay. And four percent savings showed the study on average when the post was paid annually instead of every six months.

“A calculation example shows: If an insurance company costs 500 euros annually, you have to pay an average of 543 euros for monthly installments,” says car insurance expert Kathrin Gotthold from the “Finanztip” money guide. Also in the case of a quarterly contribution payment, around 540 euros are still due and every six months would still apply around 20 euros in additional costs on average.

How the contributions to car insurance will be paid is one of many tariff characteristics that can make the total costs more expensive or cheaper.

While you only have a low influence on your place of residence, the age of the driver or the damage-free class when you take out a new car insurance, you can significantly reduce the costs by choosing the payment method.