Should I pay my car insurance monthly or annually?

With Apia’s payment flexibility, you can choose to pay your car insurance premium in monthly instalments or in a single annual sum. But the payment option you choose may depend on your lifestyle, budget, and long-term financial goals.

Benefits of paying your insurance by the month

Improved cash flow

Choosing monthly payments may allow you to improve your cash flow by breaking down your yearly premium into smaller, more manageable instalments. This can be particularly helpful if you’re on a fixed income or have limited financial resources.

Spreading the payments over the course of the year can also make it easier to budget and meet other essential expenses.

Get a monthly Car Insurance quote

Continuous coverage

Have you ever worried about forgetting to renew your car insurance?

Monthly instalments can ease some of the pressure in having to remember the date of your policy renewal. Our payment systems at Apia are set up so that your monthly instalments automatically continue after the 12 months have passed to ensure that your car insurance coverage remains uninterrupted.

However, it is recommended that you update your policy details as soon as your circumstances change – such as your address or bank details.

Benefits of paying your insurance yearly

If you want to simplify your insurance payments, then you may find a single annual payment more convenient. Paying annually also has a few other benefits:

  • Some insurers charge less if you pay your policy premium annually – contact your current insurer to confirm this.
  • There’s no fuss around setting up automatic payments.
  • You don’t need to remember to transfer money each month to the right account.
  • There is no risk of missing monthly payments that might lead to a lapse in your insurance cover.

However, you’ll need to consider whether your situation allows you to make the yearly payments without putting too much strain on your other financial commitments.

Get an annual Car Insurance quote

Can I change between annual and monthly payments at renewal?

Absolutely! You can do this by logging in to Apia Online Services and switching at renewal time.

Please note that Apia policies with quarterly, half yearly or yearly direct debits can’t currently be managed online. For assistance with these policies, please contact us on 13 50 50.

What payment methods are available from Apia?

We offer several flexible ways to pay for your insurance, including:

  • through Apia Online Services using your American Express, MasterCard or Visa Card, or by direct debit from your bank account,
  • through our secure credit card payment system by calling 1300 064 781 , or
  • by taking your renewal certificate to your local Australia Post office to pay.

Manage your insurance

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Australian Pensioners Insurance Agency Pty Ltd (Apia) ABN 14 099 650 996 is an authorised representative of AAI Limited ABN 48 005 297 807, the product issuer. Read the Product Disclosure Statement before buying this insurance. Limits, conditions, exclusions apply. The Target Market Determination is also available.

This advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. The information is intended to be of a general nature only. We do not accept any legal responsibility for loss incurred as a result of reliance upon it – please make your own enquiries.

The information is intended to be of a general nature only. Subject to any rights you may have under any law (including the Australian Consumer Law), we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information – please make your own enquiries.