The price of purchasing and maintaining an auto insurance policy is unavoidable for many motorists. It’s not uncommon for a state to require that all resident vehicle owners maintain an automobile protection plan of some form or another. Having a policy whether required by law or not, however, is almost always recommended. In order to make coverage more affordable, many motorists find that it’s easier to distribute the cost of a policy by making monthly payments. This method is particularly effective for individuals that may only be able to find expensive coverage because of poor driving records. In this situation, dispersing payments over the course of a year may be the only way to afford a policy.
Because nearly every insurer offers a different way of paying for service, it’s important for motorists to contact a company to discover what options are available. There are some providers which only allow customers to pay for service in one large deposit, or in larger installments throughout the year. Some companies, on the other hand, will allow for monthly deposits or even the purchase of car insurance with no down payment for additional savings. Although a motorist may not be placing any money down, in most situations an individual purchasing one such plan will still have to make the first month’s premium payment in order to obtain coverage.
Additional Car Insurance Payment Options
Although making monthly payments is an excellent way of dispersing the costs of coverage, there are a few concerns that motorists should be aware of. Should a policyholder miss a payment there is a chance that the consequences can be very unpleasant. Doing so could potentially result in a number of fees, a lapse in coverage, or one’s policy may be canceled entirely resulting in a cancellation fee or reinstatement fee when the payment finally arrives. Although a monthly based policy may be an exceptional option for many vehicle owners, motorists are still encouraged to investigate as many options as possible. One choice that may end up saving a vehicle owner a large amount of money is paying for a policy in its entirety upon signing.
Although paying in full can often amount to a large sum of money, paying for coverage in this fashion has several advantages. When a policy is paid in full the policyholder will not have to pay yet another monthly bill, which in turn eliminates the chances of making a late payment and the consequences that typically follow. Additionally, motorists will not have to pay any financing fees that typically accompany monthly payments, which can sometimes be around $ 10 a month. To find a balance between the two options the Washington State Office of the Insurance Commissioner recommends paying for a premium in full every six months in order to avoid any potential fees that may come from monthly financing. Knowing this information, as well as any additional details can all lead to more affordable coverage.
Source: http://www.onlineautoinsurance.com/pay-monthly/
Expand the description and view the text of the steps for this how-to video. Check out Howcast for other do-it-yourself videos from Dynamic and more videos in the Car Insurance category. You can contribute too! Create your own DIY guide at www.howcast.com or produce your own Howcast spots with the Howcast Filmmakers Program at www.howcast.com Follow these helpful hints before you sign on the dotted line. To complete this How-To you will need: A credit report Knowledge of local law Careful consideration Competing quotes Extra coverage A credit report Knowledge of local law Careful consideration Competing quotes Extra coverage Step 1: Check your credit Check your credit report for errors. Insurance companies use your credit rating to help determine your rate. Tip: Request a copy of your credit report by logging onto annualcreditreport.com or by calling 1-877-322-8228. You are entitled to one free copy per year. Step 2: Obey the law Find out the minimum car insurance required by law on your state’s Department of Insurance web site. Tip: Only New Hampshire and Wisconsin don’t require car insurance. But since they do require people to pay for accidents they cause, many people carry it anyway. Step 3: Consider more liability coverage Consider buying more liability insurance than your state requires. Consumer groups recommend a minimum of 0000 for injuries per person, 0000 per accident, and 0000 in property-damage liability. Tip: Most American car insurance does not …
