Auto Insurance Payment Options
When you purchase an auto insurance policy, you are usually presented with one or more payment options.
You will be presented by your insurance agent a price for the total policy, usually six months worth, and there will be a difference in price whether your pay the premium all at once, or break it out monthly.
There are advantages and disadvantages to each payment option.
Paying the premium all at once is the most cost-effective option.
The total premium price is lower if you pay all at once, and the added advantage is that for that entire policy time period, you do not have to worry about paying your car insurance.
You already paid it all at once.
You're all paid up for that amount of time.
That's six months to a year that you have that part of your life covered.
Depending on your rates, however, this option can be price prohibitive.
Who had more than a thousand dollars at a time to spend in one pop? If you do, this is the best option for you.
Paying the premium monthly is your other option, but there are ways to make this option more convenient, and to make it save money for you.
For instance, once you're quoted a price for your premium, you can negotiate to pay a higher monthly premium over a shorter amount of time.
This will look good to the insurance company, and it will get your premium paid faster, so that you can have several months where you don't have to worry about paying.
Sometimes, though, this is still not an option.
Funds can be limited, and sometimes you only have a small amount of money to work with every month.
This is when you pay your minimum monthly amount for your auto insurance premium.
If your only option is to pay the minimum monthly premium, it is wise to set up an automatic withdrawal of the premium.
Insurance companies are a lot more comfortable dealing with you that way, as they have some assurance of payment, and know that you have a valid bank account with which to pay your premium.
The only trick there is to make sure that you have enough money every month for them to take the money out so that your account does not go into overdraft.
If that happens and your payment fails to go through, you are at risk of having your insurance lapse, which jeopardizes your driving rights and your very freedom.
If you have no bank account, some insurance companies will allow you to pay monthly with a money order or cashier's check.
If this is your choice of payment, it is imperative that your money order or cashier's check reaches the insurance company well in advance of your payment due date.
Otherwise, you will be spending a lot of time on the telephone, trying to convince your insurance company to let you keep your policy intact.
Overall, no matter what your situation, it is helpful to work with an insurance broker.
The insurance broker can help you figure out the best policy for you, but can also go over all your different payment options, and sometimes will accept cash to make your payment for you.
Having auto insurance is necessary if you drive, so make sure you pay the piper accordingly.
You will be presented by your insurance agent a price for the total policy, usually six months worth, and there will be a difference in price whether your pay the premium all at once, or break it out monthly.
There are advantages and disadvantages to each payment option.
Paying the premium all at once is the most cost-effective option.
The total premium price is lower if you pay all at once, and the added advantage is that for that entire policy time period, you do not have to worry about paying your car insurance.
You already paid it all at once.
You're all paid up for that amount of time.
That's six months to a year that you have that part of your life covered.
Depending on your rates, however, this option can be price prohibitive.
Who had more than a thousand dollars at a time to spend in one pop? If you do, this is the best option for you.
Paying the premium monthly is your other option, but there are ways to make this option more convenient, and to make it save money for you.
For instance, once you're quoted a price for your premium, you can negotiate to pay a higher monthly premium over a shorter amount of time.
This will look good to the insurance company, and it will get your premium paid faster, so that you can have several months where you don't have to worry about paying.
Sometimes, though, this is still not an option.
Funds can be limited, and sometimes you only have a small amount of money to work with every month.
This is when you pay your minimum monthly amount for your auto insurance premium.
If your only option is to pay the minimum monthly premium, it is wise to set up an automatic withdrawal of the premium.
Insurance companies are a lot more comfortable dealing with you that way, as they have some assurance of payment, and know that you have a valid bank account with which to pay your premium.
The only trick there is to make sure that you have enough money every month for them to take the money out so that your account does not go into overdraft.
If that happens and your payment fails to go through, you are at risk of having your insurance lapse, which jeopardizes your driving rights and your very freedom.
If you have no bank account, some insurance companies will allow you to pay monthly with a money order or cashier's check.
If this is your choice of payment, it is imperative that your money order or cashier's check reaches the insurance company well in advance of your payment due date.
Otherwise, you will be spending a lot of time on the telephone, trying to convince your insurance company to let you keep your policy intact.
Overall, no matter what your situation, it is helpful to work with an insurance broker.
The insurance broker can help you figure out the best policy for you, but can also go over all your different payment options, and sometimes will accept cash to make your payment for you.
Having auto insurance is necessary if you drive, so make sure you pay the piper accordingly.