UPDATED: Mar 13, 2020
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If you’ve ever purchased an auto insurance policy before, chances are you’ve been offered the option to pay by the month, bi-annually, or annually. Chances are also good that you skipped right over the month-to-month option because the other two options give you a huge advantage when it comes to what you’re going to pay in the long run. Continue reading below to learn more about monthly car insurance as another option for auto insurance coverage.
About Month-To-Month Car Insurance Policies
Most auto insurance providers will give you the option to pay for coverage on a month-to-month basis rather than forcing you to make a large upfront payment. To decide if “monthly car insurance” works for you, you need to carefully review its advantages and the disadvantages as well as your unique situation. There are some instances when paying every month makes sense. If you expect to change providers, are going to move, or plan to purchase a different vehicle in the next six months, a month-to-month plan could be your best option.
That being said, if you’re looking to get the absolute best deal, you’ll definitely want to sign onto a policy for a minimum of six months. If you sign on for a year, even better, because they’ll offer you an even steeper discount.
To take this method of saving on your car insurance one step further, adding multiple cars to a policy will extend the savings even farther.
Do You See a Pattern Here?
The more business you can guarantee a particular insurance provider, the more savings they are willing to offer you. Some car insurance providers also offer home, health, and life insurance. Combine all your various insurance policies with the same provider, and you can easily save hundreds of dollars every year!
Monthly, Bi-Annual, or Yearly: How Do You Choose?
Only you will know which of these options is best for you. Much like pay-as-you-go mobile phone plans or other ordinary month-to-month expenses, the benefits are apparent. You’re granted ultimate flexibility and freedom with monthly car insurance.
However, if you’re shopping around for auto insurance, and the best premiums available, a more extended agreement can work in your favor.
To recap, let’s take a look at the pros and cons of month-to-month auto insurance:
- Provides more Liquidity – If you pay a substantial amount upfront for a year or six months of coverage, your bank account might be left bleeding. Monthly payments, on the other hand, can be more manageable.
- More Flexibility – Making monthly payments gives you more room to change providers or cancel your policy if you need to. Without giving the insurance company all of your money at the beginning, you are left with more freedom.
- More expensive – Signing a longer contract will get you a better deal, but another hidden cost of month-to-month insurance is the processing fees. Insurance companies charge you a fee every time they process your payments. When making 12 of these per year, the costs can add up.
- Inconvenience – You will be forced to have to pay bills every month instead of once per year.
Get Quotes for Monthly Car Insurance Packages
Care to see how much you can save by going bi-annually or yearly in comparison to monthly car insurance? All you have to do is type your zip code in the field at the very top of this page. You can then flawlessly pick and compare insurance policies based on your exact, personal needs.
Find a policy that fits your unique lifestyle. See how much each payment term will cost you so you can make a well-informed decision.
You’ll be shocked at how much auto insurance companies are willing to give back in exchange for just a few extra months!