Monthly Car Insurance

Car Insurance is a necessity for nearly every adult-aged American. Driving has become a way of life in this country, and in order to minimize the damage and financial burden that comes from car accidents, we are required to carry valid car insurance at all times while driving. Most insurance policies come in 6 month terms – drivers make lump sum payments every 6 months that cover them for the next half year. Sometimes, however, a 6 month payment is too big for people to comfortably handle – in that situation, monthly car insurance is available in which you pay a smaller amount each month and receive the same coverage as with a standard 6 month policy.

These days times are tough, finance-wise. With the economy the way it is, all over America families are tightening their belts, eliminating luxuries, and looking forward to when they can once again afford to spend more on the things they want. Unfortunately, insurance doesn’t become any less necessary in uncertain times, and almost every state in the country still requires that all legally licensed drivers have some basic level of auto insurance policy.

Naturally given the economic climate, people are looking for ways to save money on their necessities, insurance included. Even if we can’t save any money, finding a way to lower lump sum payments is really helpful – it’s often easier to budget out a $100 monthly car insurance payment rather than $600 every 6 months, mainly because saving such a large amount is difficult, especially when it’s for something as dreary as auto insurance, when there are other things we want to purchase so much more.

With a monthly car insurance policy you pay only the first month down, which lessens the burden of having to make larger, less frequent payments. Car insurance by month is the best way to make it easy to keep up to date on your policy. You may not actually save any money with a monthly plan, and in fact you may spend more, but if it means the difference between being uninsured and having the peace of mind that comes from knowing that a car accident won’t bankrupt you, it is worth the small extra fee. The reason it might cost more is that essentially by paying for 3, 6, or 9 months at a time most drivers are qualifying for an additional discount. In order to keep the costs down, consider setting up your bank account to automatically debit the monthly car insurance payment from your account and pay it directly to your insurance company – many give you a discount or save you some money on fees if you do this.

Also, just because you’re on a monthly plan doesn’t mean you have to pay in monthly installments on the 1st. If you come into some money, or save a bit more in a particular month for whatever reason, you can pay monthly car insurance in advance for one or more months, and this too can save you some money in fees and discounts. Basically with a monthly system you’re trading discounts for a more convenient payment schedule – if you can do with less convenience, you can save.

Sometimes switching to a monthly payment plan means that your total cost of insurance will go up over the life of the policy. This depends on your insurance provider – some of them prefer to receive smaller payments more often and so do not charge additional fees to their customers for paying more frequently. Others, particularly larger brands do tack on small ($2-10) fees to each monthly payment. Each company has different philosophies on payments, so be sure and get quotes from multiple companies when shopping around – and be sure to ask them specifically about bi-monthly or more frequent payment options and fees.

Monthly car insurance is not a one size fits all concept – depending on your particular driving record and habits, and your financial situation it may make sense to try it out for a couple months to see if it lessens the burdens of maintaining your car insurance. Only, however, by sitting down and calculating the total cost of your insurance under each plan can you figure out whether any difference in total cost is worth the convenience or fees associated with frequent payments. If you have bad credit, paying monthly may be your only option to get insured, but there is a silver lining – making frequent small payments on time is a great way to establish a new track record of financial repayment, and a great first step to rebuilding your credit score. If monthly payments are not right for you after 6 months to a year of paying them, you should have the credit necessary to transition to a less frequent plan.

Don’t think that for this reason you won’t be able to find cheap monthly car insurance. There are definitely deals to be had by shopping around and not taking the first offer you’re presented with. Get quotes from multiple reputable insurers and you’ll be sure to find one that is customized towards you and saves you money. Beyond customer service and the dollar value of the coverage you pay for, car insurance policies are more or less the same, thus you can afford to shop on price alone.

Shopping for auto insurance is much easier these days than it used to be, even for monthly plans. Instead of finding the closest local insurance agent and cultivating a relationship with them over time, these days it’s easy to compare multiple quotes online and then choose the best policy for your driving profile. Companies will take into account your age, driving record, employment, grades, and many other factors in figuring out what risk profile you fall into, and customize a quote for you. They’re interested in getting and keeping your business, though, so they’ll make the effort to give you the best car insurance quote they can.