But how do you know you’ve chosen the right option? Well, here are a few things for you to consider:
Your payment frequency
First and foremost when looking at the car insurance payments options for your business is to consider the frequency with which you’ll pay. Do you want to pay in a single transaction or via a monthly direct debit?
The benefits of a one-off payment
Though car insurance payment options are gradually becoming more flexible in the UK, for most businesses, annual or monthly payments are the two sole options available. If you can afford a one-off payment, you may well find that you save money overall, as no interest will be added to your fee.
Paying by monthly instalments
However, paying by monthly instalments may prove more manageable and suit your business’s finances better, especially if you invoice your clients on a monthly basis, and have a regular monthly income coming in. A monthly direct debit can help you balance your books more easily and could prove more convenient in some respects.
Be aware of additional interest payments
Remember though, choose monthly payments, and you’ll be entering into a credit agreement with your insurance provider. So, when weighing up your business car insurance payment options just be sure you understand, if you’ll be making additional interest payments should you choose a monthly option or if you’ll be required to pay a deposit first – as is sometimes the case.
More limited options?
Also, when choosing a monthly payment, ensure it is the right policy for you, as you may be narrowing down your options by choosing this option. Before you commit, consider if there are any more suitable insurance policies available.
In addition, give thought to the add-ons that come with your business car insurance, as they may help you to make savings on other costs like breakdown cover – so give careful thought to your options and priorities.
More flexible payments options
In some parts of the car insurance industry, more flexible options are becoming available for consumers – including a pay-as-you-go option. Here drivers benefit from policies with fees which are based on their actual performance as a driver, rather than industry averages – with the help of a telematics system.
Although such schemes have yet to make an impression on the business sector of the market, times are changing, and more flexible payments options are making an appearance. So don’t automatically renew your policy each year, do shop around to find the best deal and consider your options carefully.
Your payment methods
Though there are variations between different policies and insurance providers, your payment methods are likely to be limited to a one-off payment made by a debit or credit card; or a monthly direct debit taken straight from your bank account. Most insurers don’t allow payment by cash or cheque payments these days.
However, before you commit to a particular policy, ensure you understand what you’ll be required to pay, when and how; and any additional fees, interest or penalties you could potentially face.
Consider your business cars
Also, if your business is on the lookout for more cars, then think carefully about which makes and models you choose as some will inevitably cost more to insure than others. The more secure, environmentally friendly and fuel efficient the cars, the better.
Consider your cars’ security
Hand-in-hand with choosing your cars with care is considering the security measures you put in place, such as fitting aftermarket locks and installing telematics (or black box) systems, both of which could lower your insurance costs. Just be sure to speak to your insurance provider first – as they may have a preference as to the measures you take and the products you use.
Finding your business car insurance
As with any insurance, it’s best to shop around and look at the policies a range of providers can offer you before you commit to a particular policy; and consider how their payments options vary. Hand-in-hand with this, you should consider your business needs and cash flow.
What would best suit your business? Is economy or convenience your priority? Is a one-off payment or monthly instalments your preferred option? Are there beneficial add-ons available that could tip the balance.
Have an insurance broker on hand
Call an experienced insurance broker such as Call Wiser so you find the right policy and car insurance payment option for your business. They’ll be able to tailor the insurance policy to suit your needs, so you’ll be paying for those elements you need and not those add-ons you don’t require.
Broaden your options
In addition, an insurance broker may well be able to offer you options not available on price comparison websites, so it’s worth weighing up your options and giving them a call to discuss your requirements. By engaging the help of an insurance broker, you’ll have the best chance of finding the right policy and payment option.
So there you have a few tips on what to consider when choosing your insurance, so you know you’ll have the best policy and car insurance payment option for your business.