How Do You Pay Your Car Insurance?
Car Insurance Payment Options
Car insurance can be very expensive, and if you pay your car insurance bill twice a year, or even quarterly, you will most likely be overwhelmed when the bill arrives. Fortunately, there is a solution to the sick feelings you might experience when you get your car insurance bill in the mail. It’s time to discuss the pros and cons of different options for paying your car insurance.
Minimize the “Shock” Effect
Some consumers have found that paying their car insurance bill on a monthly basis is very beneficial. If you choose this option, rather than be hit with a large bill all at once, you can pay a smaller portion each month by spacing out the entire balance over the course of a year.
There are definitely some benefits to paying your car insurance bill on a monthly basis. Many consumers have difficulty setting aside a certain portion each month and saving it over the course of the year. That money tends to get spent on other things.
By paying your car insurance each month you will be forced to set aside a certain portion of your budget to meeting this financial obligation, and you will be less likely to spend the money frivolously.
If you opt to pay your car insurance on a monthly basis, realize that you are most likely going to pay a premium for doing so. Insurance companies oftentimes charge more for this convenience.
How much you’ll have to pay for a monthly payment option will depend on your insurance companies. Some companies charge a nominal fee while others charge $10 or more.
As long as the cost is nominal, paying your car insurance bill monthly rather than annually or bi-annually will free up some cash flow and may help you better manage your budget.