Monthly home cover repayments need not be the costly option
Paying for home insurance by month doesn't have to incur an additional charge, says moneysupermarket.com.
Brits looking to keep the cost of their home insurance manageable may opt for the convenience of monthly instalments; however some insurers charge up to 22 per cent extra for this luxury while others provide it for free, proving how worthwhile shopping around can be says moneysupermarket.com.
Britain's number one comparison site looked at the options for consumers wanting to pay their annual home insurance premium in monthly instalments. It found most insurers charge their customers for this privilege; those who decide on monthly repayments can expect to pay on average an additional ten per cent to the cost of the original premium, but opting to pay monthly could cost up to 22 per cent extra with some insurers. However, this can be markedly less if people shop around for the best deal, and research shows some providers don't add any additional cost at all for monthly payment.
Julie Owens, head of home insurance at moneysupermarket.com, said: "We are all looking for ways to cut our outgoings and make our finances more manageable - opting to pay for the cost of your home insurance by month is a good way of keeping your initial outlay for home cover down, splitting the cost in to smaller payment amounts can really make things easier. While this may be more convenient compared to forking out for the whole year's cover, it is crucial to make sure you're aware of any additional cost and ensure that you scour the whole market to find the most reasonably priced deal.
"Shopping around for the best deal possible is crucial; on average moneysupermarket.com can save you £131 on your annual home insurance policy."
Brits could consider other financially-savvy ways to pay for their home insurance premium, such as using a zero per cent purchase credit card.
Julie Owens added: "By putting the cost of the premium on to a zero per cent purchase credit card, Brits would be able to pay for their policy in monthly instalments without paying interest. There are a number of zero per cent purchase cards on the market for up to 12 months, so if you are eligible, you'll only pay for the original price of your policy. One of the current market leading 12 month zero per cent purchase (and 12 month zero per cent balance transfer) cards is the Virgin Credit Card which will enable you to make monthly repayments over a year with out incurring any interest on the cost of your premium, A word of warning through, it's important to be very careful that you do pay off the total cost of your premium within the zero per cent period, as if you don't, you could incur higher interest rate fees of 18.9 per cent APR on the whole cost of the premium, not just the balance."