Can I Pay for Car Insurance Monthly?
 Fortunately for consumers, there are many auto insurance companies that allow policyholders to pay for automobile coverage in monthly installments. By paying for a first month's premium and any applicable fees or down payment, a motorist can obtain a policy and continue to be insured by making payments on a month-to-month basis. Although this may be an easier option than paying for policies in full there are downsides as well as benefits to choosing this method of maintaining coverage.Pros and Cons of Paying for Auto Insurance MonthlyA number of consumers may not necessarily have the ability to pay a premium in full due to the amount it may cost some individuals to become insured. Depending on a particular individual's circumstances, it can be extremely expensive to obtain coverage and paying for policies in installments may be the only option to stay covered. For instance, teenagers are not likely to have a high income, but are in the most expensive age group to insure. Therefore, it may be impossible for these young drivers to pay for an auto insurance policy in one large lump sum and a payment plan may be the best option to maintain coverage.Some motorists may have had a few mishaps in the past, such as a conviction for driving under the influence of drug or alcohol, multiple tickets, or a history of traffic accidents, all of which may cause premiums to increase. Other individuals may own multiple vehicles or simply live in an area where rates are exorbitant such as Detroit, and can benefit from a monthly auto insurance plan to help stay insured and this is why car insurance companies offer this option to potential policyholders. Though an installment agreement may make it easier to obtain a policy there a few downsides, mainly the additional expenses. Paying for coverage on a month-to-month basis will usually include a billing fee of up to $10. Over the course of a year, this could add up to around $120 that is being paid on fees and not to on coverage. In addition, many insurers reward individuals in the form of more affordable auto insurance policies for those who pay premiums up front. The length of a policy term is usually 3, 6, or 12 months and paying in full can yield substantial savings. For example, in many cases, paying for a 3 month term up front can equal the amount of two monthly payments, which is like getting one month free and not to mention that the billing fee will only come around quarterly that also leads to savings.  While consumers can choose to pay for coverage up front or in payments, it is ultimately up to the individual and financial circumstance. Some do not have the means to pay for policies in full, while others choose not to in order to keep cash on hand. Whatever the case may be, being insured is an important part of owning and operating a vehicle and it is wise to stay covered no matter which type of payment plan is chosen. |