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Car Insurance Loan

How to cut your car insurance cost

There are a number of different things you can do to help cut the cost of your car insur-ance premium, including:

  • Shop around for the best deal
  • Paying a higher voluntary excess (the extra amount you’d pay in the event of a claim)
  • Limiting who drives your car to just yourself, or you plus a named driver
  • Parking your car in a garage or driveway away from the street
  • Keeping your mileage low (doing less than the AA average of 12,000 miles a year for new cars)
  • Fitting a security device such as an alarm, tracker, or immobiliser
  • Borrowing the cost of the car insurance from your Credit Union and make one lump sum payment to the insurance company instead of paying by instalments.

I saved £500 on my car insurance by paying it with a loan from Central Liverpool Credit Union. I was quoted £1,500, and to pay it off over the year would have cost £2,200. I borrowed £1,500 from my credit union and the total repayments over the year will be £1,700. Thank you Credit Union - Andrea

How Much Can I Borrow?

Whatever is the cost of your car insurance, provided you prove that you can afford to pay it back.

How Much Will It Cost?

Car insurance loans are charged at 2% per month on the outstanding loan balance. This works out at 26.68% APR

For example

£500 paid back over 52 weeks will cost you £10.27 per week which includes the interest of £63.40.

Loan benefits and features:

  • 26.8% APR available on loans with a minimum value of £500
  • No set-up fees
  • Overpay as much as you want each week or month.
  • No penalty charges for paying off the loan early
  • Opportunities to save while you are repaying the loan.
  • Easy budgeting with fixed loan repayments over the 12 months.
  • You can have a Car Insurance Loan alongside other credit union loans as long as you can afford the repayments.
  • You will be asked to provide proof of the insurance quotation
  • The Loan will be paid directly to the insurance company.

“I am delighted to say that by going with the credit union for my car insurance this year I have saved nearly £400 by paying the insurance company in one lump sum. I highly recommend this to other members” - Gill

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Central Liverpool Credit Union Tel: 0151 708 5515 Email: Web:
Central Liverpool Credit Union is authorised by the Prudential Regulation Authority & regulated by the Financial Conduct Authority & the Prudential Regulation Authority. FSA FRN: 213251