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InsPay

Questions and answers

Everything on this site, as the questions people ask

Each answer uses the same words as the page it comes from, so there is one version of the facts. Where an answer leans on a figure, the guide it links to shows the source.

Is InsPay available yet?
Not yet. InsPay is in development. Nothing on the website is an offer, a quotation, a recommendation or advice, and InsPay will not arrange credit or distribute insurance until it can do so under the permissions of an authorised firm. The only thing the site invites you to do is leave an email address to be told when that changes.
Why does paying for car insurance monthly cost more than paying once?
Paying monthly costs more than paying once. Insurers, in conjunction with premium finance providers, add interest when you spread the cost across the year, so the convenience of twelve payments is one of the most expensive things on your policy. InsPay removes the interest element: a lending partner pays your premium in full, and you repay that same amount across ten months, with nothing added for spreading it. What you pay for is the InsPay product itself, and its cost is shown in full. InsPay is not the lender, and instead carefully selects the company that provides you with the credit to pay for your insurance.
How can a larger excess make car insurance cheaper without leaving me worse off?
A large excess costs less, and it should never cost you. Raising your total policy excess to £1,000 reduces what an insurer charges for exactly the same cover. On its own that is a worse deal, because you are the one carrying the risk. Instead, InsPay includes insurance that pays up to £1,000 excess when you claim, so the lower premium is real and the excess never reaches you.
Do I have to change insurer to use InsPay?
You shop for cover the way you do now. Compare quotes wherever you normally would and pick the policy you want. You are not moving to an insurer you have never heard of, and you are not filling anything in twice.
Who works out the price at the higher excess?
You see the same cover priced the InsPay way. Inside your insurer's or comparison site's own journey, or from a quote you already have. Either way the price comes from your insurer pricing the risk at the higher excess, not from anybody guessing at what you would prefer.
Who pays my insurer, and who holds the credit agreement?
Your insurer is paid in full, on day one. InsPay's selected lending partner pays the annual premium straight to the insurer, which is what removes the insurer's own charge for paying by instalments. The credit agreement is between you and that lending partner.
How long do I repay over, and what happens if I claim?
You repay across ten months, and your excess is covered. You repay the amount borrowed, which includes the cost of the InsPay product. Claim, and the excess is paid for you, so nothing comes out of your own pocket. The cost of the InsPay product is shown in full before you agree to anything.
Who does InsPay help most, and who does it not help?
Normally, you pay the premium finance provider monthly. That is where the extra cost sits, and it is where InsPay has the most cost to remove. If you already pay for the year in one go, InsPay has less to offer you, and we would rather tell you that than attempt to sell InsPay to you anyway.
Would I have to take a £1,000 excess on its own?
We suspect you would never take a £1,000 excess on its own. Nor would we. That is why the cover for the excess is part of the InsPay product rather than an add-on you have to notice, choose and remember to renew.
Can I keep the policy and the insurer I already chose?
You want to keep the policy you chose. Your insurer, your level of cover and your renewal all stay where they are. The only thing that moves is how the premium is paid and who provides the excess insurance cover.
Why does paying for car insurance monthly cost more than paying annually?
Because paying monthly is usually a loan. The insurer or a premium finance company pays the annual premium up front and you repay it with interest, so the total you pay across the year is higher than the annual price. 47% of UK car insurance policies were paid for this way in 2023, and where interest is charged it typically adds 8% to 15% to the amount borrowed. Read the full guide
Is it cheaper to pay for car insurance annually, and what if you cannot?
Yes, almost always. Paying annually avoids the interest and fees that come with a monthly plan, and some insurers price the annual option lower to begin with. The catch is that 60% of drivers who pay monthly do so because they cannot pay in one go, so the cheaper option is the one many people cannot reach. Read the full guide
What is excess protection insurance, and is it worth it?
Excess protection is a separate policy that pays you back the excess you have had to pay on a car insurance claim. It exists because a higher excess makes the main policy cheaper, and protection makes the higher excess bearable. Whether it is worth it comes down to one sum: does the premium fall by more than the protection costs? If it does, and you would be covered when you claim, you are better off. Read the full guide
Does a higher excess make car insurance cheaper?
Yes. A higher voluntary excess lowers the premium because you take on more of each claim, and because drivers who choose a higher excess tend to claim less often. How much it lowers it varies by insurer and by driver, and the saving is only real if you could pay the excess when you need to, or have cover that pays it for you. Read the full guide
Can you pay for car insurance monthly without paying interest?
Sometimes, but rarely on car insurance. Less than 3% of car insurance policies paid monthly in 2023 were interest free, against over a third of home insurance policies. The regulator has said that interest-free premium finance is a choice some providers make, that others charge interest, and that it does not intend to force the market one way or the other. Read the full guide
How can I pay less for my car insurance?
Seven things move the price. Compare the total amount payable rather than the monthly figure, pay annually if you can, set the excess deliberately and consider cover for it, get the details right, compare again at renewal even though insurers can no longer charge you more for staying, and look hard at add-ons and how you pay. The last of those is where most of the avoidable cost sits. Read the full guide
What is premium finance?
Premium finance is the loan behind paying for insurance monthly. A finance provider, which may be the insurer, a company in its group or a specialist lender, pays the insurer the whole annual premium, and you repay the provider in instalments with interest and sometimes fees. 47% of UK car insurance policies were bought this way in 2023, and the interest on them typically runs at 8% to 15% of the amount borrowed. Read the full guide
Does paying for car insurance monthly affect your credit score?
It can, because paying monthly is a credit agreement. The finance provider may run a credit check before accepting you, the agreement may appear on your credit file, and a missed instalment can be recorded like a missed payment on any other loan. Paying annually involves no credit at all. What happens in your case depends on the provider, and the quote should tell you before you agree. Read the full guide