Buying a car is exciting. It helps you feel that your economy is stable. And not everyone can afford to buy this good or to request a vehicle loan to get it. As important as buying a car is obtaining vehicle insurance . With insurance, not only the vehicle you bought is protected, but also the people or property that could be damaged by an accident that your car causes.
When you are going to buy vehicle insurance, it is normal for you to have doubts, including whether to buy this in cash or in installments. In this note I show you what you should keep in mind when taking out vehicle insurance and thus discover which one suits you.
Cash is cheaper
When you take out a product with your credit card and want to take advantage of the offer, but not pay interest, you usually pay cash, right? The same goes for vehicle insurance.
By requesting it and paying it in cash you reduce the interest expenses that would result from asking for it in installment.
How much interest can I get to pay?
This varies depending on the cost of your insurance and the model of your car, among other factors. For example, I just quoted the cost of insurance for a 2015 KIA Rio, if I paid this insurance in cash it would cost me S /. 1, 951.
If I exchange this for a payment in twelve installments, I would end up paying monthly installments of S / .165. So at the end of the year I would have paid 1,980 soles, that is about 29 more soles.
My advice is that before deciding if you buy insurance in parts or cash quotes.
Compare well which of the two prices suits you best. If the difference is not many and you do not want to feel the payout, then pay in parts. Just don’t forget to add it to your personal budget to avoid debts and blackberries. Also compare the prices and benefits of different insurers before choosing one.