Do you pay car insurance by monthly Direct Debit? BEWARE!

[@MrsFrançoisCharlotte]

Well explained. Thank you for bringing up this video. Financial education is indeed required for more than 70% of the society in the country, as very few are literate on the subject. Thanks to Caroline Suzan Olson, the lady you recommended.

[@SevilCanErten]

That is true, my dear. Investment is the best idea presently, and without it, human struggles are worthless.

[@NancyMason-d7g]

Truly facing this recession without investment is actually risky; salaries are easily spent off. This inflation has taught people the importance of multiple income investment, which helps a lot.

[@MehdiVerlinden-w7z]

This is correct. The Caroline Suzan Olson strategy has normalised winning trades for me also, and it's a huge milestone for me looking back to how it all started.

[@BruceRogers-t4q]

Wow, I know her too. Caroline Suzan Olson is a remarkable individual who has brought immense positivity and inspiration into my life. Her unwavering wisdom has been invaluable assets, enriching my journey in countless ways.

[@JosephZerafa-l3g]

I was advised to diversify my portfolio among several assets, such as stocks and bonds, since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.

[@charliekane135]

I changed this two years ago and started saving over the previous year to pay it in one lump. It's a relief not having yet another monthly direct debit hanging round my neck like an albatross.

[@sl1d3r1984]

I can't afford to pay annually anymore used to be 3-400 now it's over 1000. But never thought about doing this instead of the finance offered. Obviously one thing to mention to viewers would be that even if you are accepted for a purchases credit card. You still might be waiting a further 3-5 business days for it to arrive/activation so people need to factor this in when looking for insurance. Need to be doing this at least a week/2 weeks in advance of the 21-23 days sweet spot for buying/renewing insurance

[@ImBaudits]

Yeah I thought this when he said “those who CHOOSE to pay monthly” It’s not a choice, a lot of people don’t have a choice and even once they get to a point, it’s a mentality change - which is why videos like this are good tbf 👌🏻 I grew up skint so monthly was just life. Then I got a bit of money and sill just carried on monthly until I started dating someone who pointed out I was being a silly sausage coz I now had the choice Not paid monthly since ♥️

[@seanriordan6726]

Shouldn’t this be regulated bearing in mind it is a LEGAL REQUIREMENT! We shouldn’t have to jump through hoops like this whilst these companies are lining their pockets.

[@eskimo4130]

I agree with the sentiment, but it's really not needed. People just need to drive vehicles that aren't above their pay grade.

[@charliekane135]

@@eskimo4130The vehicle you drive doesn't always affect your insurance by a huge amount. Lots of other factors like age, experience and where you live is a huge factor. Your statement is flawed.

[@eskimo4130]

@@charliekane135 if you want to cherry pick examples to fit your opinion, then sure.

[@charliekane135]

@@eskimo4130 Cherry pick? 😆 I'm stating facts. Your location matters hugely, same as for home insurance. Use your loaf.

[@pjay3028]

​@@eskimo4130 "Cherry pick" what on Earth are you talking about 😂😂

[@charliekane135]

Thank you Martin Lewis for your ongoing care and concern for British people

[@Darren_Harper]

Another example of how things are more expensive for people who don't have money.

[@alpioozen]

Poverty tax

[@Dynasty1818]

If you "ain't got no money innit" then why do you have a car for insurance costs to affect you?

[@charliekane135]

@@Dynasty1818Bad logic. Disabled people need cars to get about outside their homes, many need them to travel to work if they live in rural areas or work night shift when there are no buses.

[@Dynasty1818]

@@charliekane135 ahhh as usual someone picks the extreme, minority example to justify their outburst

[@zzStiitchzz]

​@@Dynasty1818to get to work

[@gmac8032]

NFU don’t charge interest on paying by monthly direct debit .

[@robholland1937]

I’ve always paid annually and haggled every year and used a price comparison. I’ve saved £100s over the years.

[@shardlake]

Well said, it can be a hassle doing it every year, yet well worth the savings, not just for insurance!

[@rudeboyiramo]

Yeah makes a difference in your bank account , when you also do this with your house insurance, gas and electric ,mobile phone bill and others.

[@randomdaveUK]

I used to, then my car got stolen... Insurance more than doubled. Victim always worse off I guess

[@jasonoldy69]

I usually ask to split the annual cost in to 2 or 3 interest free payments, but that means calling the broker, but worth it

[@stevem7076]

NFU …. no charge for Direct debit!!

[@movimo-x1k]

I think it's really important to understand that this isn't a Direct Debit issue, it's an instalments issue. You don't pay extra for paying by Direct Debit. You pay extra for spreading the cost. If you paid the full annual amount by direct debit then there would be no charge. I wish providers would make this clearer because Direct Debit is the safest way to pay due to the Direct Debit Guarantee protection. Still really important for people to understand the extra cost when spreading the payments via credit.

[@joncowley1]

I got an insurance quote for a new Berlingo van, clean license, full no claims, private use for dogs and mountain bikes. They wanted £22,380 a year to insure it!!!!!!! And I am 49 been driving 30 years!

[@charliekingpin8568]

Wise words, spot on many thanks

[@simonsherratt1484]

This man is a saint. I've been using credit cards for car insurance for a couple years. Great minds think alike

[@deflatedrubberduck]

It's always been better to pay in one lump sum for insurance but the problem is many cannot afford to do this. Although, it does surprise me how much some people do pay and many seem to cripple themselves because they must have something large and powerful like a Range Rover. I have a VW Polo, I pay less for car insurance than when I first passed my driving test in 1990.

[@CycloneCyd]

Another option would be to take a straight forward personal loan from your bank. Take it over 12 months just to pay the insurance. There will be interest but much much lower than paying the insurance company interest.

[@deanskidmore4495]

use a 0% interest credit card over 12 months and pay no interest at all

[@CycloneCyd]

@@deanskidmore4495 err! well, yeah,that was Martin's first suggestion 🤷‍♀what's your point?

[@eskimo4130]

@@CycloneCyd probably to highlight that borrowing small amounts of cash and paying interest on it is the definition of a lack of financial sense.

[@trickydicky90]

You forget to mention the best part. When you have an accident that is 100% the other guys fault, your insurance company passes your claim to another finance firm, said firm then offers you a replacement car(which is actually a hire car agreement on a charge of £300 a day), while your car with a minor wing damage sits awaiting parts for 4 weeks. The end result is a 2k repair, ends up being 7k on the other guys insurnace. That's the real story here.

[@DubSalvation]

Good old subcontract kingdom of not so great britain. This is why we fail to be a productive economy because of layers upon layers of subcontractors that add very little value to the work being done but all want a slice of the cake.

[@ulsdon7]

Yes, we didn't realise this when we sold our car less than a quarter way through the insurance period, we ended up going to the ombudsman but in the end we had to pay the total 12 months even though we only used about 2 months insurance. A few years back you just sold your car and ended your insurance and sometimes you got a small rebate.

[@devanampiyatissa]

Pay on card and pay back the 0% card is the best.

[@smilly9]

It’s an absolute con, as you pay for other services in monthly instalments as you use them like internet, you are not using 12-months worth of insurance in one go so in reality they are making interest on the 12-month lump sum if you pay in one go and penalise people who pay monthly.

[@XORTION]

But it adds to your credit score 😎, 2. You can get out easier than having to go through claiming back which can be added annoyance

[@Acyberton]

There's also the opportunity cost consideration of interest foregone by by paying a lump sum when you could be holding the money in a high-interest account typically paying you north of 5% - only a consideration though if car insurance interest is low...

[@isabellesmith5253]

Thank you Martin for the info you are brilliant 😊x

[@alan_wood]

NFU claim they don't charge interest on Direct Debits.

[@johnbrown9588]

Thanks, Martin, I've always paid in full, except about 30 years ago when some companies were offering 0%APR. What does need to be investigated though, is the real reason the annual premiums have skyrocketed, mine went up by a whopping 243% last year. Is it EVs that we that drive ICE cars are subsidizing, the increase of RTCs, The fires like the one at Luton airport?? or all of these factors? Nobody, thus far, has come up with a conclusive answer. Thanks to your site, Martin, I saved c. £600 on my current policy.

[@musicloverUK]

That car was a diesel who represent the highest number of car fires, then petrol then electric at the bottom end.

[@johnbrown9588]

@@musicloverUK We know, I never said that the fire was caused by an EV.

[@sagesoulman]

Ive been fortunate enough to always pay in one go but i really have learned something today

[@shardlake]

I always pay annually, anything I do get using DD has to be a cheaper option not added interest, I checked my last renewal and it would be 23% interest had I opted for DD...

[@jonathanphillips3257]

You say high, I would say bloody outrageous rates, especailly on top of their overinflated premiums.

[@GhaaziWarrior]

....if they dont keep the costs high ...how do you expect the guys at the top to buy their private yachts? ....and the expensive bottles of champagne .

[@deanskidmore4495]

pay with a credit card then use the 0% interest to spread the cost over 12 months as you would anyway but you don't pay the interest the insurance charges you

[@cuezed]

I've always paid car insurance annually. You can clearly see the huge difference when you get quotes online

[@FinancialHealth-ku1ry]

Far too many wasteful people buying cars they cannot afford. Christmas is coming, watch them waste even _more_ money💰 and then complain about 'the cost of living crisis'. 😕

[@ynwa3476]

Police Mutual charge no interest on DD and nothing to cancel/amend a policy.

[@10rGreenninja]

Which is why I always pay 12 months up front fortuately I've always been able to do so although at times it has been a struggle.

[@mohammadhaseeb122]

The insurance finance should be interest free, they are charging interest for something that is a legal requirement, and with insurance prices going up every year its getting more difficult to pay it all in one go.

[@DrMildayan]

Wish I had found this video before I renewed my house and car insurance. Still managed to get both cheaper this year by shopping around though.

[@karychannon1675]

Martin why don't you explore for the people the lawfulness of council tax....

[@mrtuber3491]

Most people don’t have the discipline to pay off their credit card or to not max it out on things like Xmas. It’s sound advice but I suspect it will not work for many who don’t have the yearly amount to pay in one go.

[@Yorkshiremadmick]

NFU you pay no interest. It’s the annual price divided by 12.

[@SWR112]

But the reality is the interest on my Car insurance is like £20 over the whole term. So I’d rather pay £1-2 a month rather than rip out just under £300. I have zero other loans. Car insurance is a con and needs total fixed it’s broken because it doesn’t make sense most of the time, they can’t even make sense of their own quotes. Every year I go on and tell them nope your renewal is stupid so try again and they magically lower it £40. I do low miles and have never ever claimed Car insurance in thirty plus years of driving.

[@charliekane135]

There are hidden costs with monthly payments. If your insurance is £300 it may 'appear' that it's only £20 higher over the year but it's probably more. If you select 'annual payment' on a comparison website the options to choose from can be cheaper than if you select 'monthly' and multiply it by 12.

[@stco2426]

Good advice here, Martin.

[@shroomy7199]

NFU do not charge. Personal experience a very good firm

[@mikewallace1723]

Lots saying this, but in my experience their quotes are hundreds more expensive. Makes no sense for me.great for those that it is the lowest quoted

[@shroomy7199]

@@mikewallace1723 this may be true. Me personally far happier to pay a bit more to be looked after by their service. As you say does not suit everybody but you can also pay a lot more and still get charged extra for paying monthly

[@anarchodandyist]

@@mikewallace1723exactly. No interest but the premium is much higher.

[@mikewallace1723]

Not everyone can afford to pay the lump sum. Mine was just due and because of unexpected outgoings, I decided to pay monthly. Yes I am aware of the interest being charged. But wasn’t that bad. Lower than credit card borrowing for example. I usually pay in full.

[@deanskidmore4495]

how is it lower than a 0% over 12 months credit card????

[@Alendi11]

The problem is a lot of insurers don’t accept credit card payment

[@Dynasty1818]

The ACTUAL problem is people trying to use credit cards to pay.

[@deanskidmore4495]

@@Dynasty1818 you really have a stupid mentality

[@charliekane135]

@@deanskidmore4495They're right though. Paying any bill with a credit card is unwise.

[@jeromerussellewis]

Yes, you are totally correct. To be honest in previous years I have been paying monthly and the last three years I’ve been with Hastings when I was renew my insurance and I looked at everything closely realise how much interest they wanted so 12 months prior I was saving every month a small fund for this purpose so now I’ve paid off the whole year and the saving process has all started again for next year and on top of the savings I made from the Car Insurance. I’ve put that towards my fixed rate electricity bill.

[@magimac9979]

Please talk about the mortgage fraud thanks.

[@markcampbell8048]

There's one problem with paying annually, if you're in a accident and your car is written off you then have to claim the money back and you don't get back the money you think you should be getting

[@JoeFoley-s4d]

Very good advice 😀👍

[@AHP-]

Got a multi car policy on direct debt? Check the interest rate on additional vehicles direct debt payment higher %? 🚗🚗🔍

[@DazDaz105]

On another note. I told my car insurance (Hastings Direct) that i was unemployed so want to reduce the annual mileage so I need a requote based on change of circumstances. In other words reduce my cover to Social/Domestic and remove the Commute. I thought I was doing the right thing morally and legally. They put my premium up and wanted to charge me £25 admin. HTF does driving LESS increase your premium ?? The call handler couldn’t understand it either. It’s all a rip off and does not make any sense. Pure racketeering. I sacked them off.

[@rachaelamber22]

I didn't realize it was a loan

[@deflatedrubberduck]

If you read your insurance schedule paperwork, you'll see there's a credit agreement attached.

[@jeremycanning8934]

Be aware of the solicitors these insurance companies employ. After 19 months my case went to court, two solicitor companies argued over who should represent me. Case thrown out due to my claim not being submitted 14 days before the date.

[@Siddan88]

NFU mutual don’t charge for direct debits

[@araza8313]

Some companies don’t accept credit card payments😢

[@essexandy189]

The amount car insurance has gone up is an utter disgrace & a rip off it shouldn’t be allowed i got a tesla I’m 61 with full no claims & I’m paying over £1500 it’s a joke

[@davidmccready6471]

I’m 64 full no claims Suzuki Swift £192 fully comp not long renewed and it actually went down 40 quid from last year so stayed with Ageas. I was surprised but bit their hand off as I couldn’t beat it anywhere.

[@RearViEwmirror-3]

insurance has become a scam. with excess and what not. useless.

[@darrenboston342]

Admiral multi car don’t charge ya .👍 I have 6 cars, pay in full up front for the year tho…. Just saying.

[@Dynasty1818]

Fun fact: big brands like Ford and Nissan and Audi are selling your braking, acceleration and journey length time to insurance companies without you knowing, who use that data to up your insurance costs.

[@BanjoPixelSnack]

Another reason I prefer older cars that aren't hooked up to the spynet.

[@Nicholas-db5sl]

The Government slapping on an additional 8% Premium Tax on it doesn’t help either.

[@davet9900]

Thank you Martin

[@Taylor___]

I pay monthly and it doesn’t appear anywhere on my credit file? But if you apply for a credit card to pay for insurance then you’ll be credit checked there anyway. Not sure about this advice.

[@sl1d3r1984]

I've found it doesn't always show up on all of them. Have you checked all 3? As mine is showing on clearscore but not on experian for instance

[@Taylor___]

@@sl1d3r1984 Ah possible. I’ve not checked all three.

[@Frederique41]

It’s like pay day loans…

[@Irons9991]

Do you have to keep applying for a different credit card each year to do this though?

[@H_G2013]

3 months ago i took out policy and pay monthly - is there any way i can do this method

[@shan6938]

Thank you Martin x

[@barrywhite5899]

Never pay anything on the monthlies. If you’re given your salary away ever month then you’ll forever be poor, pay it all in one go or go without.

[@deanskidmore4495]

you are illiterate in finance go and educate yourself

[@eskimo4130]

@@deanskidmore4495 It's sound advice for a basic understanding of affordability.

[@ciupak7932]

Take a bank loan..?

[@rodd1000]

So applying for a NEW credit card every time you need car insurance….mmm. This screws your credit rating so NOT advisable. Had a mate who used to do the same until he wanted to remortgage and was refused, all due to this. Bad advice.

[@eskimo4130]

IIRC Martin does say that when you're due a remortgage you check your credit score and/or don't go taking loans close to the date.

[@1Arty]

EV car insurance has doubled in a year

[@andrew-o5i]

no you pay more ?

[@BlueMax333]

Martin is a Saviour!

[@grey28282]

Some Call Her The Shadow Warrior ⚔, Some Call Her The Dark Knight , Some Call Her The Fallen Angel . She is a Guardian of Dreams , " She is and They are the first and always" , Eternal Legendary Dreamcatcher .

[@jayshy07]

Not everyone can get credit cards FFS 🙄

[@robtheplod]

This guy needs to be chancellor, not that failed bank of england woman....

[@jayshy07]

The fact you think most people have a lump sum like that to pay in one go is a ridiculous from you. And no, I don't have a credit card cos I can't get one 🤦🏽‍♂️

[@johnnyoldskool6504]

Just another way of ripping us off

[@LeighWilbraham]

😂😂😂😂😂😂😂

[@johnwalsh5703]

Doesn't even look or sound like Martin Lewis. Too mechanical. AI PERHAPS? !

[@davekelly8168]

Scandalous

[@eskimo4130]

It's a sad state of affairs that 1 in 3 people pay monthly!! People are just too addicted to consumerism and playing keeping up with the neighbours. I drive an old man's car with messed up paint work. Insurance is less than the tax. Can i afford better? Hell yes. But my wallet isn't trapped by my ego.

[@davidfisher2359]

All insurance is a con.

[@MartinKirk-y5v]

Smith Margaret Young George Moore Lisa

[@mhoward181]

Iv been looking into debt over the past few years and one thing I learnt is how bad credit cards are and how liberating a budget can be. It truly is a game changer. So to hear him say this makes me cringe. Use a 0% credit card. It makes me realise how bad this guy really is. He should helping people to change their behaviours. Not work with the credit cards companies. But then again he does the same by promoting Amazon. Not surprised.

[@shardlake]

I think he made the peril of credit cards very well during that presentation! Maybe you should watch it again.

[@mhoward181]

@@shardlake doesn’t matter. He mentioned CC. he’s a wealthy person that knows the perils of using cards. He should know how CC are designed and be working with people to fight against them and their use

[@sl1d3r1984]

I think you have vastly missed the point. He's saying cash is king. If you cna pay without finance or credit card then do so. However what he is saying is a 0%-20% credit card compared to a 20- %-4 50% Apr on a finance agreement (basically payday loan Apr territory) is the LESSER of 2 evils. He never said it's good. Or ideal. And he also warned about budgeting and not being tempted to use it for other things. Given many people's insurance has gone from 2-300 a year to 800-1000 a year. And then finance want a 25% Apr then yiur repayable becomes close to 1250.

[@mhoward181]

@@shardlake ur an idiot.

[@eskimo4130]

Well he could have been brutally honest and said that if anyone can't afford to pay their car insurance in one go, then their whole attitude to finances is completely messed up, and they should take financial advice to sort their life out. A CC is a tool to be used wisely. Debt is also a tool to be used wisely.

[@mikewinston8709]

Surely everyone knows this? It’s stupid to pay on credit. No sensible person will buy anything on credit.

[@deanskidmore4495]

idiot

[@DoYouLikeMyHandle]

Just another con