The insurance company will tell you how much you need to pay for a year. They will send you a bill.
Paying for your insurance
Insurance company
A company you pay money to each year. In return, they agree that if something is lost, damaged or stolen, they will pay to replace it.
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You can pay the bill all at once.
Or you can pay monthly by Direct Debit.
Paying by Direct Debit
When you pay by Direct Debit the money goes out of your bank account automatically every month. You don't need to remember to pay it.
Bank account
You can put money in the bank and leave it there. Then when you need it you can take the money out to pay for things.
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You can find more information on paying bills using Direct Debit in the guide we have made called Using a Bank Account.
Direct Debit
This is when money goes straight from your bank account to pay a company. It normally means the same amount each month which the company works out.
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You can get a copy from United Response.
You can call them on: 020 8256 5200
Or you can go to the website at: www.making-money-easier.info (the website will open in a new window.)
Be careful!
Paying by Direct Debit can be easier. But sometimes it will cost more altogether.
Check if it would be cheaper to pay it all at once.
Direct Debit
This is when money goes straight from your bank account to pay a company. It normally means the same amount each month which the company works out.
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If it would be cheaper to pay all once, but if you don't have the money, you might be able to borrow the money from somewhere.
It is always best to borrow money from bank or a building society or a credit union.
Credit union
They are like banks but owned by the people who use them. They offer some banking services like loans.
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Never borrow money from someone who comes to your door. They will make you pay back much more than you borrowed.
It can be difficult to work out what would be the cheapest thing to do. Ask someone to help you.
Your policy document
The insurance company will send you a policy document. This says what insurance you have bought and what it covers.
Insurance company
A company you pay money to each year. In return, they agree that if something is lost, damaged or stolen, they will pay to replace it.
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It is very important to keep all insurance documents safe. You could put them in a folder.