I don't know about you, but I don't get paid six months in advance, so why do auto insurance companies think that is either fair or smart to bill me for six months' worth of premiums in advance? Most of us don't have that kind of money sitting around, and so more and more people are starting to shop around and look for auto insurance companies that offer monthly car insurance payments, instead of getting a bill every six months for a lot of money.
If your current semi-annual payment is $750 (about the national average), then you could be paying just a little over $100 per month if you switched to a company that offered monthly car insurance payments.
This is a much more reasonable amount, leaving you a little more wiggle room with your budget - something that everyone needs these days.
Few people actually have $750 in their accounts that is not earmarked to something else.
Not all auto insurance companies offer these kinds of monthly premiums, and some will charge you an extra fee to arrange this, but for most people, the fee is worth it.
Why let a company sit on YOUR money for six months, while they are earning interest on it and you aren't? If you have problems with your credit report, or your credit score is low (less than 600), then you should do your best to try and find a company that will let you pay monthly.
Your credit score does affect the price you pay, and by spreading the payments out like this, it will help you out and ensure that you are able to pay on time.
Just make sure that your auto insurance company reports your prompt payments to the credit bureaus so that you get credit for being a good customer!