Car insurance rates can change depending on several different factors. You can pay cheaper premiums simply by choosing to pay every six months instead of every single month. Paying ever six months is also easier for you to track in your budget.
Avoid Extra Administrative Fees
When you pay for car insurance once a month, one of the main reasons your car insurance rates are higher is because the insurance company has to process your payment 12 times per year. If you only pay every 6 months, the insurance company can reduce the amount of paperwork and administrative time that is needed to process your payments. That reduction in paperwork and time is passed on to you in the form of cheaper premiums. If the company only has to contact you twice a year, they will save quite a lot of money in overhead costs.
Lock in Your Premium
If you choose to pay for your car insurance once every six months, your insurance rate will stay the same over that six month period. Paying every month leaves you open to rate changes that could increase your insurance costs. If the insurance company has to tabulate your insurance costs each month, you may find that you have to pay more for your car insurance than you would have if your costs are tabulated twice a year instead. Paying every six months is a good way to control how much your insurance costs annually.
No Anxiety about On-Time Payments
Making a car insurance payment twice a year allows you the freedom of not having to remember to pay the bill each month. When you choose to make monthly payments, you have to take the time to organize your budget so that you are sure you make your payment each time it is due. You also have to deal with the possibility that you may spend some time without coverage if your payment is late or you accidentally skip a payment. Paying twice a year provides you with the peace of mind that your coverage will remain stable for the entire six months.
Opportunity to Make Adjustments
Paying twice a year offers you a good opportunity to evaluate your car insurance needs. If you were to pay every month, you would not notice many of the life events that can cause your rates to go up or down. If you take the time to consider your car insurance coverage every six months, you will have a better overview of your life and the things that might be different compared to the previous six month payment. You can perform insurance quote comparisons from several companies more easily on a six month basis.