| Consider how much difference it makes whether you pay monthly or annually | Spreading your costs can result in an increase of up to a third | Timing of the renewal can also make a major difference to the total cost |
We all want to get a good deal on insurance policies, but have you considered how much difference it makes whether you pay monthly or annually?
New research1 suggests that the extra cost associated with paying monthly can be as high as 33%. Specifically, choosing to spread your cost into 12 instalments results in a total median cost of £87 for contents-only cover, compared with £65 for annual payment.
Likewise, the difference for buildings-only cover was £236 when paid monthly against £206 on an annual basis. Finally, savvy customers could save £50 by paying annually (£230) for buildings and contents cover, compared with monthly payments (£280).
The research also found that timing can make a major difference to the total cost. To save even more, purchasing your home insurance policy around 28 days before it’s due for renewal could reduce the price by 24% compared to leaving it until the last day, figures revealed.
1Go Compare, 2025
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.