My name is Eric Bowman, and if you have questions about insurance, this is the blog you need to read. I was always confused when I had to purchase insurance. I would either end up paying for insurance I didn't need or I wouldn't buy the right policy. I finally decided that I was going to learn all I could about insurance policies so that I would understand exactly what I was buying. Now, I am completely satisfied with my insurance and the coverage is just what I need. I realized that there are others who are probably just as confused as I was, so I am writing this blog to help others get the best insurance for their needs and budget. I hope that my blog gives you the information you need to make the right choices when purchasing insurance.
If your car insurance company is like many, it might offer you a few different options for making your payments. You might have the option to pay for your entire policy term at one time, such as by paying for the entire year or six-month term at once, or you might be able to choose monthly payments. Some people choose to make monthly payments because they don't have to pay as much at one time, but paying for your entire term at one time can have its benefits. Here are a few reasons to consider it:
1. You Might Save Money
For one thing, you should consider the fact that you just might save some money by paying your auto insurance annually rather than each month. Many companies offer a significant discount for customers who do so. Plus, if you normally have to pay a fee each time that you make a payment, such as a credit card processing fee that you have to pay when using your credit card to pay online or over the phone, you will only have to worry about paying this fee for a one-time payment rather than for a payment each month.
2. You Don't Have to Worry About Your Coverage Lapsing
Having your insurance lapse can be a big deal. Not having liability coverage is against the law in most states, so you could receive a citation or even a misdemeanor charge. Additionally, if you get into an accident, you won't be covered. Plus, if your car is financed, your lender probably requires you to have full coverage insurance in place. It's possible that you might forget to make your payment one month, which can cause big problems. If your insurance is already paid for the entire term, however, this isn't something that you have to worry about.
3. You Can Reduce Your Monthly Expenses
Even though it can be tough to pay for your entire term at one time, it can help make things easier on you later. Then, your payments are already covered, so you do not have to worry about a monthly obligation. This can make it easier for you to handle your month-to-month expenses.
As you can see, if you normally pay your auto insurance premiums monthly, you may want to consider doing things differently in the future. If you talk to your insurance agent, you can find out whether or not this might be a good idea for you.