Third-Party Liability Insurance in Instalments — Is It Worth Paying Even Several Dozen Percent More?

A one-off payment for the entire policy can save from several to more than thirty percent of the insurance price. To find out why this is the case, you can read the article

0% third-party liability insurance in instalments? It is possible! Find out where you can get such an offer. So are there any advantages to third-party liability insurance in instalments that could make car owners choose this version of insurance despite its higher price?

What happens if you do not pay an instalment of your third-party liability insurance?

The consequences of not paying all instalments for third-party liability insurance are serious, but probably not as serious as you might imagine. The insurer will not refuse to pay compensation to the person you injure, even if you are behind on your instalment payments! However, it will not renew the policy for another year. In addition, you will have to pay interest calculated on the basis of your arrears, and taking on the debt itself may result in your being entered into the National Debt Register and debt-collection proceedings being initiated.

Who will benefit most from paying in instalments?

The people who usually pay the most for third-party liability insurance are young drivers. This group includes those who are not yet 24–26 years old, depending on the assumptions adopted by the insurance company, as well as those who have held a driving licence for less than 36 months.

The third-party liability insurance price for a young driver usually significantly exceeds PLN 1,000. In November 2020, the average price of third-party liability insurance for drivers in this age group was PLN 1,475. Dividing such a large amount into two or more instalments could relieve the burden on young drivers, even if they ultimately had to pay slightly more for a full year of cover. Thus, young drivers and other car owners whose third-party liability insurance is exceptionally expensive will be particularly willing to take advantage of the option of paying in instalments.

Who should not purchase third-party liability insurance in instalments?

Drivers with substantial discounts of up to 60% for claim-free driving will probably pay so little for third-party liability insurance that they should not split the premium into instalments. Paying in instalments will unnecessarily increase the insurance cost and cancel out their well-deserved discounts.

Experienced drivers, just like everyone else, should compare offers from at least several insurance companies before making the final choice of a third-party liability insurance offer. Although insurance-pricing criteria are similar among different insurers, the final prices of third-party liability insurance may differ considerably—and it is worth remembering that every such policy provides the same scope of cover, with price being its only variable feature. Therefore, it is not worth overpaying for it.

Which is better: third-party liability insurance in instalments or paid in one lump sum?

It is worth checking third-party liability insurance prices at different insurance companies, bearing in mind that the final price is influenced by more than just splitting the insurance cost into instalments. The age of the car and its owner, discounts for claim-free driving, and engine capacity can all cause the insurance cost to vary. This also happens because each insurance company calculates premiums somewhat differently. To find out more, read the article on https://ranking-oc-ac.pl/blog/pojemnosc-silnika-a-cena-oc/, which explains how vehicle parameters affect the cost of its insurance.

Where can you find third-party liability insurance in instalments?

Not every insurance company offers instalment payments for insurance. This is because some drivers do not pay their instalments regularly. Despite one instalment remaining unpaid, the insurer has no right to refuse compensation to a person injured in an accident caused by the forgetful policyholder. Therefore, providing insurance paid in instalments is somewhat risky for insurance companies. It also creates many additional problems when debt collection against an dishonest driver becomes necessary.

Insurers nevertheless respond to customers' expectations and, like owners of other businesses, offer their products for purchase in instalments. Companies where such third-party liability insurance can be found include mtu24, LINK4 and You Can Drive. Most insurance policies can be split into two instalments, although offers allowing third-party liability insurance to be paid in 4 or even 12 instalments are also available.

The easiest way to find third-party liability cover is to compare prices from different insurers using a third-party liability insurance comparison tool. It makes it easier to calculate the insurance cost based on the vehicle's parameters and its owner's details. Third-party liability insurance comparison tools, such as the one available at ranking-oc-ac.pl, help drivers make the best choice of third-party liability insurance.