Has anyone here ever taken out monthly car insurance? You might find that it's actually cheaper to take out a bank loan, and pay the full year in one god. The premium for paying monthly is almost always more than loan repayments. If you can get a loan, that is usually the cheapest route for you to take.
There are many other ways to lower your insurance costs - this seems a bit extreme going through the trouble of getting and paying off a loan imo. Another way you can cut down on your auto insurance costs is to simply go with a higher deductible, and keep some money saved aside to pay it if ever needed. If you are paying more to get lower deductibles, you're basically throwing that extra money out the door each year that goes by without any accidents or need to use your insurance. On the other hand if you simply save up enough to cover the higher deductible out of pocket, you'll be protected, but also be saving a lot of money on your insurance each month.
I have been in a position where I wish I had thought to take out a bank loan. There are so many insurance companies out there that take full advantage of the lax government regulations regarding business practices that a bank loan makes a lot of sense for people like me. I don't have a bad driving record, just a short one. They will ask me to pay more per month than my car payment costs me. At least with a bank loan the monthly payments will be somewhat reasonable.
Taking out a bank loan to pay your annual car insurance premium is becoming a very popular thing to do simply because it is far more cost effective. Needless to say, it is not for everyone and should be carefully thought about before being entered into. The rates you get for the loan will likely be lower than the prevail bank rate mainly because so many people are taking out, and paying back these loans.
