Auto insurers

Car Insurance Premium Payments – Monthly, Bi-Monthly Or Annual?

Car Insurance Premium Payments

Many drivers like to get a bit of relief from the financial burdens of owning an automobile. To start with they will be looking to find cheap auto insurance quotes. How you pay the premium once it is decided can be quite important as well especially when you find it hard to pay the entire premium at once. That is why it becomes important to check the options available with each insurer. Generally, they provide several options. But few of them may want to receive their premium a lot faster than others.

There are numerous ways to pay your vehicle insurance premium:

  • Monthly payment. This is the most commonly chosen way of paying premiums. Using this method, you can spread the costs over instead of having to come up with the whole amount now. So, you can easily make your payments without straining your pocket. So if you have a fixed monthly income and not much spare money in the bank you will probably need to choose this method of payment. However, paying the premium through this method can be a bit costly as many companies charge interest when the payment is differed. Therefore, you end up paying more at the end than agree premium. Also, you may not get some discounts as carriers will only offer them to motorists who are happy to pay all at once. Then, policyholders are less likely to switch to a rival provider if they find better deals before the renewal date.
  • Bi-Monthly Payment. Some insurance providers also give you the opportunity to pay your premium once in every two months. This gives you a little relief as you do not have to pay on monthly basis, but at the same time you have to pay a big amount every two months. There are some chances of getting a discount, but that only if you have an excellent driving record.
  • Annual Payment. If you are making the payment annually, this means two things. The company has more assurance that you will stay until the end. And of course they receive the money upfront and use the way they like. This makes life easier for customers since they do not have to worry about insurance for the rest of the year.

This is the best way to insure your car as you get great discounts as insurance companies love loyal clients. Annual payment option makes sure that the policy cannot be cancelled due to missed payments or hiccups in the bank.  It is paid and done with.

However, you should have enough money to pay the annual cost. You have to save that much of money to pay in one go. Alternatively, you may find the interest cost is cheaper with your credit card company INSURANCE CENTER NC than charged by the insurer.

Whatever the way you choose to make the payment, always make sure that you make it on time. Otherwise, you will face policy cancellations and it will not look good to have lapsed period in your coverage. If you are struggling to make the monthly payment you should talk to the carrier. A reasonable auto insurer can give you few days more before they cancel the policy.