How often do you pay for your car insurance?

The payment terms

The usual options are monthly, quarterly, half-yearly or annually. Annually is usually the cheapest.

With monthly payment many insurers charge a surcharge of a few per cent. Over a year that mounts up.

What the difference is

Work it out: a surcharge of three per cent on a premium of eight hundred euros is twenty-four euros a year. For some people spreading the cost is worth that, for others it is not.

If you fall into arrears

If you do not pay, a reminder follows with a payment deadline. If payment still does not come, the cover can be suspended.

That is more serious than it sounds: with third-party liability cover suspended you are driving uninsured. The victim is then compensated through the Waarborgfonds, which recovers the full amount from you.

So always clear arrears straight away, or get in touch if you cannot pay. An arrangement is often possible.

On sale or suspension

If you cancel the insurance after selling the car, the premium paid in advance is refunded pro rata. Report the change of registration straight away.