Strap yourselves in wannabe petrol heads. With the help of money saving expert, Martin Lewis, Book Theory Test Today is hitting the road with 50 top tips that will cut your motoring costs. Tune in each & every week for a new tip and remember to share with friends and family.
This week weâ€™re looking at paying monthly for your insurance. Did you know? Paying your car insurance monthly incurs an interest rate charge, itâ€™s true.
Book Theory Test Today Cost of Motoring Tip #3 â€“ Avoid Paying Monthly
Book Theory Test Today says: â€œPaying car insurance on a monthly basis is equivalent to paying a highâ€“interest loan.â€
Money expert Martin Lewis demonstrates: â€œIf youâ€™re insurance premium is Â£1,000, but youâ€™re paying an APR of 25%, your insurance is actually costing you Â£1,140 a year once interest is applied.
To prevent paying more for your insurance, Book Theory Test Today advises that you pay the amount in full. If thatâ€™s not an option get yourself a credit card with a lower interest rate. Or, as Martin says, â€˜get yourself a 0% credit card for spending; making sure what youâ€™re repaying is substantial enough to clear the credit within 12 months.â€™
When paying by credit, either in monthly instalments or in full, be sure to check that your insurance provider doesnâ€™t charge you a fee. However, itâ€™s likely that the fee is less than the one charged when paying by monthly instalments.
How do the Big Insurers Compared?
Well, the awesome Mr Lewis carried out a comparison check and compiled details of the monthly APRS of the UKâ€™s biggest insurers. From highest to lowest, these are as follows:
- Endsleigh â€“ 39.7%
- Aviva â€“ 36.9%
- RAC â€“ 29.9%
- Hastings Direct â€“ 29.9%
- Axa â€“ 29.6%
- Privilege â€“ 29.4%
- Prudential â€“ 24.1%
- Churchill – 24.1%
- Sainsburyâ€™s – 24.1%
- John Lewis â€“ 23.5%
- Co-operative â€“ 18.5%
- Asda â€“ 14.5%
- M&S â€“ 9.9%
- First Direct â€“ 0%
Correct as of January 2015
Based on these results, First Direct provides the best deal. However, if you can afford, Book Theory Test Today always recommends payment in full.
Book Theory Test Today offers an intermediary service assisting clients with booking a UK theory test, or practical test, at test centres across the nation. The service also supplies resources to help you prepare for your theory test â€“ Ready to take your theory test? Book your theory test online today…