Payment Methods of Car Insurance: Monthly, Yearly, No Down Payment and more
When you’re looking for car insurance, you usually have a lot of questions. One of the main questions for most people is how much the insurance will cost — closely followed by when and how that money has to be paid. There are several options for paying car insurance premiums including monthly, yearly, no down payment and more.
Your car insurance rate can vary based on how you elect to make your payments. This is because some companies tack on additional fees if you choose to pay on a schedule that is not standard for that company. In other words, if the company normally collects premium payments every six months but you want to pay every month, there may be additional fees added on to your car insurance policy to cover maintenance and processing. That’s pretty normal, and many companies do it.
A lot of people like to pay monthly because it makes their payment smaller. They don’t mind paying the additional few dollars in fees because it stops them from being required to pay out a large amount every six months or every year. If you’re not good at saving money, the monthly car insurance option may be the best one for you. If you’ve got more in savings, you can probably get a better car insurance rate if you pay every six months or just once a year. A lot of companies also offer direct debit for these options, so the money can come right out of your checking account. You won’t have to write a check, and that also helps to ensure that you don’t accidentally forget to pay your bill and end up driving around with no car insurance.
If you have a good driving record and good credit, you may also be able to get a car insurance policy with no down payment. People with bad credit histories or poor driving records usually can’t get this option, though, because the insurance companies aren’t willing to take a big risk. These people also pay higher premiums, and some companies won’t insure them at all — especially if they have a bankruptcy on their credit.
No matter what your driving and credit history are like, you will be able to find a company that’s willing to insure you. When you do, be sure to ask that company about the different options for paying for your car insurance policy and whether your car insurance rates will change based on the option you choose. It’s important that you know what you’re agreeing to and exactly how much money you’ll be paying out how often. Read the fine print, ask questions and you will get an insurance policy you’re happy with.