Kidorry Posted November 8, 2012 Share Posted November 8, 2012 Can anyone explain to me this,my quote is for £521 but if I pay it monthly by direct debit it is going to cost me £597.I always thought paying by direct debit was cheaper.Maybe it doe`s not apply to the people who deal with motorists, Link to comment Share on other sites More sharing options...
harestone Posted November 8, 2012 Share Posted November 8, 2012 It's a credit charge, pretty standard i reckon. Link to comment Share on other sites More sharing options...
jacklev1 Posted November 8, 2012 Share Posted November 8, 2012 Car insurance is a big rip off I'd hang the lot of em it's time the gov looked at the insurance company's as they are Robbin people blind but on of the big problems is whip lash every one seems to be claiming for that's why costs are high:mad: Needs sorting out Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted November 8, 2012 Share Posted November 8, 2012 Can anyone explain to me this,my quote is for £521 but if I pay it monthly by direct debit it is going to cost me £597.I always thought paying by direct debit was cheaper.Maybe it doe`s not apply to the people who deal with motorists, Paying annually is often cheaper than paying monthly- rarely is it dearer. But paying by DD or SO is almost always cheaper than paying by cheque, cash over bank counter, etc. Link to comment Share on other sites More sharing options...
Kidorry Posted November 8, 2012 Author Share Posted November 8, 2012 Paying annually is often cheaper than paying monthly- rarely is it dearer. But paying by DD or SO is almost always cheaper than paying by cheque, cash over bank counter, etc. That is why I do not understand their logic. Link to comment Share on other sites More sharing options...
Obelix Posted November 8, 2012 Share Posted November 8, 2012 That is why I do not understand their logic. IF you are paying once for an annual policy then they only have to process payment once. If you are paying twelve times then even if each payment is a cheaper method, it's still an admin cost each time so it adds up. Then you are effectivly borrowing that money from them, so there is an interest charge to consider as well. Link to comment Share on other sites More sharing options...
alchresearch Posted November 8, 2012 Share Posted November 8, 2012 If you can't pay upfront then you're applying for credit, and there will be some kind of charge for administering it and collecting over the 12 months. Link to comment Share on other sites More sharing options...
Isabelle Posted November 8, 2012 Share Posted November 8, 2012 If you can get one, it may work out cheaper to get a zero interest or low rate credit card, pay the full amount on that, and pay a 1/12th off each month. Link to comment Share on other sites More sharing options...
Kidorry Posted November 8, 2012 Author Share Posted November 8, 2012 If you can't pay upfront then you're applying for credit, and there will be some kind of charge for administering it and collecting over the 12 months. I will pay up front when, and if, I take their quote but that still doe`s not answer my question because they still have to process direct debit and that is cheaper. Link to comment Share on other sites More sharing options...
nikki-red Posted November 8, 2012 Share Posted November 8, 2012 Some insurance companies use a separate finance company, I always just presumed the extra money was interest. My monthly DD goes to one of these companies, NOT direct to the insurance provider. The finance companies arent going to do it for free. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.