Can I make monthly car insurance payments?

Can I make monthly car insurance payments?

Your quote for a car insurance policy may suggest an annual premium. Still, most insurers also accept a monthly car insurance payment, often at no extra cost.

When you shop for car insurance, you ideally want adequate coverage at an affordable price. However, you should consider checking the frequency of payments and not just the premium, or cost of car insurance.

For instance, you may plan to pay car insurance premiums monthly, but the insurer may charge extra for monthly payments or not offer them at all. If you’ve budgeted $1,000 per year for car insurance premiums, and the insurer charges extra for monthly payments you’ll pay more than this if you make monthly car insurance payments. If you want to pay monthly, confirm that your insurer offers this at no additional cost before you buy the policy.

What is the average car insurance cost per month?

The cost of your car insurance policy can vary from state to state in Australia. It will also vary based on your age, gender, the model and age of your car, your claims history, and the level of cover you wish to purchase. 

The average amount paid by Australians for car insurance in 2019 was $1,131 annually. However, some Aussies paid twice as much depending on their circumstances. This figure may not accurately indicate that the average monthly cost of car insurance was $94.25 ($1,131 divided by 12 months) for every Aussie. Some insurers offer discounts for paying your car insurance premium annually, which skews average annual figures and therefore doesn’t accurately portray the monthly cost.

If you prefer to pay monthly car insurance premiums, consider comparing the exact monthly cost of your policy. You can look up a car insurance cost per month calculator or ask different insurance providers their monthly premium costs. However, suppose your financial circumstances allow annual payments. In that case, you may consider making annual car insurance payments and sparing yourself the headache of budgeting for and scheduling payments every month.

You may get access to a broader range of car insurance policies if you can make annual payments. A significant percentage of insurance providers in Australia only offer annual payments on their policies.

Can I insure my car for one month?

If you’re not sure how much or how often you’ll drive your car, you might consider purchasing a short-term car insurance policy. These include a monthly car insurance policy or a ‘pay as you drive’ policy. If you buy this latter policy, you can pay only for the distance you drive, which may be preferable if you don’t want to pay a full year’s premium. 

A monthly car insurance policy, for instance, involves the option of renewing the policy at the end of the month if you know you’ll be consistently driving over the next 30 days. Buying a monthly policy usually also gives you the option of cancelling the policy when you don’t require it anymore, without paying any extra fees or charges.

When buying a monthly car insurance policy, you’ll need to confirm the policy duration with the insurer. You don’t want to end up purchasing a policy that offers you monthly car insurance rates but locks you into the policy for a year. You can also look for the specific terms in your car insurance policy document or the insurer’s Product Disclosure Statement (PDS).

Can I cancel my car insurance if I pay monthly?

Whether you opt for a monthly car insurance policy or just make monthly payments on an annual policy you may be able to cancel it at any time. Depending on the insurer, however, this may require paying additional fees and administrative costs.

Some insurers may charge you a significant early cancellation fee for choosing to terminate your annual car insurance policy before the year is up. You may consider discussing your options with the insurer before purchasing the policy to help you make an informed choice.

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Learn more about car insurance

Can you insure your car for 6 months?

Most Australian insurers won’t offer you a 6-month car insurance policy, so you may need to buy a policy that covers your car for damages and cancel it after six months. You will need to purchase comprehensive car insurance to protect your car from accidental damage, theft, vandalism, or natural disasters.. 

Consider checking whether your 6-month comprehensive car insurance will cost more if you pay monthly or six-monthly premiums instead of a one-time annual premium. Another question to ask the insurer is whether you’ll need to pay administration or cancellation fees when you cancel the policy.

Alternatively, you can look for a suitable ‘pay as you drive’ car insurance policy, which usually offers you the coverage of a comprehensive car insurance policy but only requires you to pay for the distance driven. Such a policy may not be the ideal 6-month car insurance plan as it is based on how much you drive rather than for how long. If you need to drive a lot, you may end up paying more than you’d pay for regular car insurance. 

Does insurance cover a stolen car if keys were in the car?

A car insurance policy that covers the theft of your car, such as third party fire and theft insurance, usually covers a stolen car, even if the keys were in the car’s ignition.

However, your insurer may deny the claim if you live in an area where there have been several car robberies reported recently. They will see you leaving the keys in the car as a case of negligence. In such cases, your insurance provider may even expect you to have installed anti-theft security measures in your car. 

You may need to confirm whether or not you left your keys in your car, and if they had been stolen or misplaced, before filing your car insurance claim. The loss or theft of your car keys may be covered by a comprehensive car insurance policy, but usually as an optional item.

If you can confirm that your car keys were stolen, mention this in your claim as this will help establish that your car was not stolen as a result of your negligence.

Can I drive a new car without insurance?

It is illegal to drive a car in Australia without insurance. Most states require that you get your insurance in place before you drive the car off the dealership’s plot. So, the answer to whether driving a new car without insurance is no, it is not allowed.

The only time you can possibly legally drive an uninsured car is when you have to get the vehicle registered. You should drive straight to an inspection station or your state's vehicle registry. You must also make sure that you take the most direct or convenient route possible.

It is important to note that your compulsory third party insurance (CTP or green slip) isn’t valid until your car is registered.

Driving an unregistered or uninsured vehicle can have severe legal repercussions. If you are involved in an accident, and are driving an unregistered and uninsured vehicle, you will be personally liable to pay compensation to anyone hurt, as well as for damages. If you are caught driving a vehicle without insurance, you may be fined or even have your vehicle seized.