Can I pay monthly for car insurance?
Short answer, yes! At Marshmallow you can, anyway.
Not all insurers offer a pay monthly option. But we know just how expensive moving to the UK can be. We also know that car insurance is often a large, unexpected cost that you may not have budgeted for.
If you can’t afford a full year of car insurance all at once, paying monthly can make the overall cost more manageable.
How does paying monthly for car insurance work?
Most insurers who offer a pay monthly option break your annual price into smaller, regular payments. You’ll pay via direct debit (automatic bank transfers) every month.
Essentially, this is a type of loan. It means you make a credit agreement with your insurer and pay interest on the amount 'borrowed'. You also usually need a good credit score to qualify.
We do it a little differently at Marshmallow.
Here’s why. If you're new to the UK, it’s likely that you’ll have a low credit score – even if you had great credit back home. This often stands in the way of getting credit agreements – like cheap monthly car insurance payment plans.
We don't think that’s fair.
At Marshmallow, we also spread the cost by breaking your annual premium into smaller monthly payments. But instead of a credit agreement, we charge you monthly using your chosen card details.
Doing it this way means that anyone who qualifies for our cover can pay monthly if they want to. No credit check needed.
Is there a credit check to pay monthly for car insurance?
Many insurers will run a credit check to see if you can pay monthly. But not Marshmallow.
Because you don’t enter into a credit agreement with us, it doesn’t matter what your credit score is. It can be low or non-existent – you can still pay monthly with us.
How much does monthly car insurance cost?
This will depend on how much your policy costs overall. We work this out by looking at lots of factors – including your personal details, vehicle, job and more.
Can I cancel my policy if I pay monthly?
Paying monthly isn’t the same as temporary cover or short-term car insurance. You’re still agreeing to pay for the full policy year, which is usually 12 months.
To cancel a policy you’ll need to pay a cancellation fee. At Marshmallow, the fee depends on how long your policy has been active and which plan you’re on. See our charges here.
We calculate any refunds or charges on a pro-rata basis, which means you only pay for your time on cover.
So if you cancel five days after your policy started, we would deduct the appropriate cancellation fee, plus five days of cover, from your first month’s payment. Sometimes this results in a refund — and sometimes a charge, depending on the costs.
If you have an open claim, or a closed claim where you were at fault, you’re liable for the full year’s payment if your policy is cancelled.
How can I make my car insurance cheaper?
At Marshmallow we look at all your driving experience when we price your policy, wherever in the world you’ve driven before. Including any years of No Claims Discount you’ve built up. That’s how we offer people who are new to the UK cheaper, fairer prices.
If you’re looking for more ways to make your car insurance cheaper, check out our top tips here.
