How car insurance quotes are affected by the payment plan
Best Way To Pay For Your Car Insurance- Monthly, Quarterly Or Annual?
Getting a variety of car insurance quotes is the best way to find the right insurance company. Once you choose the company that best suits your needs, you will be provided with options to make your payments. While most car insurance companies prefer an annual payment, they also offer options like paying monthly or quarterly.
Things To Consider
Monthly payments might look like the more affordable option but quite the opposite is true. Most insurance companies add a surcharge to the monthly bills so that when added up the annual payment is smaller than what you will end up paying over the period of a year through monthly payments. This is the price that you will end up paying for the convenience of monthly payments.
Most insurance companies offer discounts for those who pay the whole amount at one go. If you choose the monthly option, you will lose out on this discount.
People opt for monthly payments because they seem more manageable that way. Keep in mind that if you miss a payment you might end up having to pay a late fee and, in some cases, end up paying an extra monthly premium as penalty. The solution to this problem is setting up an automatic monthly billing option. Depending on your insurance company, you may even qualify for a discount for using the automatic billing system.
Companies have different down payment policies. Some require you to pay a percentage of the insurance premium as a down payment, while others don’t require a down payment at all.
Monthly payments are feasible options for those who are running on a tight string and cannot afford to make the larger payment at one go. High-risk candidates also seem to prefer paying the amount monthly or quarterly as the annual sum is too large to fork out all at once.
When you receive your car insurance quotes, have a look at all the options and discounts available to you, depending on your payment mode.