Monthly Car Insurance
In the past we have all grown used to the idea that a car insurance policy lasts for a year, at an absolute minimum. We have tended to accept this without question but there has never been any reason why this should be so; it is simply a fact that no insurance company thought that there was a worthwhile market for a shorter term product and indeed the costs of setting up a policy for less than 12 months used to be pretty much the same as setting one up for a full year. All this has changed with the coming of, first of all, computerisation and then the rapid spread of Internet access which has made it possible for insurance policies to be put together, not by a highly paid insurance broker working with an actuary, but by a computer program! The very substantial cost savings that this has achieved has made it possible for temporary policies to be designed and marketed, including the type which is the subject of this article; month by month rolling cover.
Within a minimum of one month and a maximum of eight months cover you can allow the policy to run for as long as you wish which makes it very interesting to someone who simply doesn't know how long he or she will need it for. Even those who require cover for a fixed length of time, say two months or four months, will appreciate the fact that the policy is so flexible because, let's face it, things can go wrong and things can change so our plans do not always work out perfectly in real life.
It is important to
remember to cancel the policy, which can be done online, in good
time when you come to the end of your requirement for it. You
need to give two weeks notice before the payment is made at the
end or beginning of the month and if you missed the deadline you
would be charged for another month's use for which you would
have no redress. Furthermore, the cost of the cover is more
expensive on a month by month basis when compared with the
average yearly insurance policy, and indeed if it was kept
beyond just a few months the total cost could exceed the price
that would have been charged for an annual premium, particularly
when special offers or discounts on the latter have been taken
Copyright William Parkes 2011 All Rights Reserved