Why Would You Have Monthly Auto Insurance?
Having flexible payment options for your bills is a convenient way of managing your personal finances and staying within a budget.
Monthly auto insurance is one way of helping you manage your insurance needs.
Few companies offer month by month auto insurance; most policies are for a 6, 12 or 18 month period; monthly auto insurance refers to the ability to pay off your insurance in monthly installments.
Many people prefer to pay their annual auto insurance premium in one lump sum.
This way, it is paid for in advance and there are no payments to forget to make.
Some insurance companies offer a small discount for those who pay the whole premium up front.
However, there are many people who find it difficult to pay the whole sum all at once.
When times are tight financially, it can be almost impossible to find the money to pay for twelve months worth of insurance, and this is when it is convenient to be able to pay by monthly installments.
Many insurance companies will set up an installment plan for you, and the payments are made each month as a direct debit straight from your bank account.
This method means that you don't have to physically paying the monthly installment, because it is all taken care of, and you won't miss a payment.
Of course, you can still make the payments yourself each month, if you choose to do it this way.
Some people choose to pay by the month, so they can retain their money in an interest-bearing account.
When their car insurance falls due, they transfer the full amount of the premium into an account that earns them monthly interest, and then uses this account to draw the monthly auto insurance payment from.
This way they earn interest on their insurance premium instead of the insurance company having their money.
It can be more expensive to pay your auto insurance by monthly installments.
Many insurance companies charge you extra for the ability to pay by the month, or there may be a processing fee, so your total insurance bill would be more.
Other insurers require you to pay a deposit first and then pay the balance off each month.
This deposit is usually a percentage of the total premium, with twenty five percent being the usual amount.
Insurance companies retain the right to refuse the customer the right to pay their auto insurance by installments.
Other companies will only offer the facility to good customers who have proven they are reliable and loyal.
Safe drivers are more likely to have the option of monthly payments offered to them than a driver who has had a record of accidents or traffic tickets.
Monthly auto insurance is one way of helping you manage your insurance needs.
Few companies offer month by month auto insurance; most policies are for a 6, 12 or 18 month period; monthly auto insurance refers to the ability to pay off your insurance in monthly installments.
Many people prefer to pay their annual auto insurance premium in one lump sum.
This way, it is paid for in advance and there are no payments to forget to make.
Some insurance companies offer a small discount for those who pay the whole premium up front.
However, there are many people who find it difficult to pay the whole sum all at once.
When times are tight financially, it can be almost impossible to find the money to pay for twelve months worth of insurance, and this is when it is convenient to be able to pay by monthly installments.
Many insurance companies will set up an installment plan for you, and the payments are made each month as a direct debit straight from your bank account.
This method means that you don't have to physically paying the monthly installment, because it is all taken care of, and you won't miss a payment.
Of course, you can still make the payments yourself each month, if you choose to do it this way.
Some people choose to pay by the month, so they can retain their money in an interest-bearing account.
When their car insurance falls due, they transfer the full amount of the premium into an account that earns them monthly interest, and then uses this account to draw the monthly auto insurance payment from.
This way they earn interest on their insurance premium instead of the insurance company having their money.
It can be more expensive to pay your auto insurance by monthly installments.
Many insurance companies charge you extra for the ability to pay by the month, or there may be a processing fee, so your total insurance bill would be more.
Other insurers require you to pay a deposit first and then pay the balance off each month.
This deposit is usually a percentage of the total premium, with twenty five percent being the usual amount.
Insurance companies retain the right to refuse the customer the right to pay their auto insurance by installments.
Other companies will only offer the facility to good customers who have proven they are reliable and loyal.
Safe drivers are more likely to have the option of monthly payments offered to them than a driver who has had a record of accidents or traffic tickets.
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