Beware of monthly premium payments

[Dustydog]

With the large increases in motor and home insurance many now pay via monthly instalments .

A number of well known Insurers now charge just under 27% interest.
Others I am told are charging nearly 45%.

It appears monthly instalments are no longer an economic way to pay.

 

[Sam Vimes]

Just renewed my Caravan Insurance with CAMC after Saga no longer do that. Monthly Direct Debit at 0%.

A small interest payment on some services is acceptable to us as it helps with the cash flow.

 

[Buckman]

For many years we have paid the lump sum, but this year we almost decided to go monthly due to the increase in premiums. Shopping around does save money.

Next insurance due in Oct is for the caravan. As it is now 6 years old, we will probably go for market value as New for Old premium will probably be eye watering.

 

[Sam Vimes]

When I renewed the Caravan Insurance with CAMC, I initially went for New for Old because our van is only 4 years old. However, the New for Old they have doesn't seem to be what you'd think it is.

Our Saga Insurance which is what we were replacing was New for Old but had a fixed value.... £18k in our case. When CAMC asked if I wanted New for Old I said I didn't know what the current market value was. They checked and it was £20k to but today the same model and if I wanted this amount covered then the premium would have gone up. I stayed with the £18k.

So its not automatically New for Old at the current selling price but some notional value you want that's more than the depreciated market value.