How much is your monthly car insurance

Prefer to pay for car insurance annually or monthly?

The individual premium amount for car insurance depends on many factors. As an insurance customer, you can influence some of these yourself. This includes, for example, the choice of payment method, i.e. whether you pay the insurance premium in one fell swoop or in installments. Usually the annual car insurance payment significantly cheaper than partial payments per month, quarter or half-year. We get to the bottom of the subject and explain, among other things, the different payment methods for vehicle insurance, the advantages and disadvantages of these and why the one-off payment is worthwhile for you.

Motor vehicle insurance premium: There are these different payment methods

Depending on the insurance, your own vehicle and no-claims class, the premium for motor vehicle insurance can be quite high. In order not to burden the account too heavily at the beginning of the year, over half of the policyholders in Germany prefer to pay the premium in installments over the year.

These payment methods are possible in the car insurance:

  • monthly payment method
  • quarterly payment method (per quarter)
  • semi-annual payment
  • annual payment method (one-off payment before the start of the contract)

But even if the installment payments seem to save the account through lower individual contributions, it is advisable in most cases to pay the premium annually. Those who pay their contribution in one fell swoop usually get away with it much cheaper than with installment payments.

According to a study by Finanztip in 2020, the surcharges for monthly payments averaged around 9.5 percent - in the top position even 25 percent. When paying quarterly, the insurers demanded an average of 8.7 percent and with half-yearly payments around 4 percent more.


The surcharges depending on the method of payment are not uniformly regulated. How high these ultimately turn out depends on both the graduation and the respective insurer. However, the finer you stagger your car insurance premium each year, the more you pay. Before your next change of provider, you should definitely pay attention to the surcharges for the payment method when comparing car insurance.

Secure the advantage: If you pay for the car insurance annually, you pay less

But why are the monthly and half-yearly payments more expensive than the annual ones and why do motor insurers offer the one-off payment cheaper? Quite simply: the more often the premium payment is broken down over the year, the greater the administrative burden for the insurer.

The extent of the administrative costs should not be underestimated. On the one hand, behind every invoice there is an effort for the insurer. If half of the insured people prefer to pay monthly, quarterly or semi-annually, the number of invoices is multiplied accordingly - this adds up to a lot.

On the other hand, not only the respective incoming payments are subsequently recorded and assigned to the individual policyholders. In addition, every incoming payment must be checked to determine which policy is affected and whether the payments received match the contributions to be made.

If there are discrepancies, further checks are necessary, for example to credit or claim differences. If, on the other hand, customers opt for the annual payment method, these efforts are reduced and thus costs are saved. And this ultimately benefits the one-time paying policyholders as a discount.

How much you save with the annual payment at Verti:

Are you looking for good and cheap car insurance or do you want to change your provider? Then use our online tariff calculator right here and find out, conveniently and individually, how much you can save with Verti if you pay annually.

When will the bill for the car insurance come?

If the car insurance was taken out on January 1st, the bill usually comes in December or even earlier. The reason is very simple: Most insurers link the policies to the calendar year. In the second half of the year, the bills for the new year go out, but they are only debited later.

Anyone who has taken out car insurance during the year receives the invoice in accordance with the contractually agreed regulations. In order not to be surprised by the additional costs this month, this date should definitely be noted in the calendar.

The personal situation decides which payment method is “better”

The bottom line is that motor insurers have good reasons to recommend the annual payment method to their customers for their own benefit and to reward them. However, there is of course no obligation to do so. Ultimately, the policyholder's individual financial leeway decides on the choice of payment method.

For example, there are vehicle drivers who prefer to pay their contribution in installments because they want to limit their insurance expenses, especially at the beginning of the year. So it makes sense to prefer paying the car insurance premiums evenly over the year.


Check what additional costs you will have to pay for each installment. Ask your insurer whether and how much you would save compared with an annual payment. For example, you could set aside a quarter of the total contribution per quarter by standing order in a separate account - and when the invoice is due you will have the annual contribution ready and thus save valuable euros.

Are you looking for a new car insurance policy? Regardless of whether you want motor vehicle liability insurance or additional partial or fully comprehensive insurance - with Verti, the second largest direct motor vehicle insurer in Germany, you have good and affordable insurance by your side.

You can easily determine your personal tariff with our online calculator. If you have any questions, our service team will be happy to advise you on 030 - 890 003 003 - and in the event of a claim you can of course reach us around the clock!

Further information on the topic can be found here:

Finanztip Study on the influence of the payment method on the amount of car insurance