Many providers now allow you to make payments online, some even have PayPal, while the traditional options such as BPAY still remain. There are generally two ways you can choose to pay your car insurance policy – annually or monthly, with a handful of providers allowing fortnightly payments.
If you’re interested in paying your car insurance policy monthly, Canstar has rounded up the car insurance providers we rate that allow their customers to do so at no extra cost.
The table below shows a snapshot of car insurance policies rated by Canstar with links to providers’ websites, sorted by Star Rating (highest-lowest) then by provider name (alphabetically). Please note the results shown are for males aged 30-39 living in Queensland with no extra driver under the age of 25.
Monthly car insurance payments
While paying for your car insurance via monthly instalments may seem more convenient and manageable, it’s worth noting you could actually end up paying a higher total premium. It’s not necessarily as simple as splitting your annual cost into 12 monthly payments.
Extra fees could apply and you will be charged interest because you are effectively taking out a loan for the total sum of your insurance and paying it back over the year. That’s why it is important to read your provider’s Product Disclosure Statement (PDS) and be aware of any extra costs associated with paying monthly.
The table below shows a snapshot of car insurance policies that allow you to make monthly payments at no extra cost, showing results for males aged 30-39 living in Queensland with no extra driver under the age of 25.
Annual car insurance payments
If you can afford to pay your car insurance policy upfront for the entire year, that will generally be in your best interest. But unfortunately for the people on a tight budget, it’s not always possible.
Paying for car insurance on an annual basis is the standard payment option offered by most providers. The benefit of paying upfront is you are more likely to have access to deals from more insurers (because some only offer annual payments), plus you will likely spend less than with a monthly instalment plan. It’s a good idea to find out how much of a discount your insurance provider might give you for paying in a lump sum, as that could factor into your decision.
Compare car insurance with Canstar
Canstar has a range of 50+ car insurance options available to compare, so if you think monthly payments are a good option for you, be sure to fully consider your options.