UPDATED: Aug 14, 2020
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If you’ve ever purchased an auto insurance policy before, chances are you’ve been offered the options to pay by the month, bi-annually, or annually. You probably skipped right over the month-to-month option because the other two options likely meant paying less for your auto insurance overtime.
Continue reading to learn some of the benefits of paying month-to-month for your auto insurance coverage.
Whether you pay by month or once a year, comparing auto insurance rates is the best way to save money each year. Try out our free tool to quickly compare the best auto insurance policies in your area.
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.
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 auto insurance discount.
To take this method of saving on your auto insurance one step further, adding multiple cars to a policy will extend the savings even farther.
How to Reduce Monthly Car Insurance Costs
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.
Pro Tip: Combine all your insurance policies with the same provider, and you can easily save hundreds of dollars every year! Enter your zip code below to view companies that have cheap auto insurance rates. Secured with SHA-256 Encryption
Enter your zip code below to view companies that have cheap auto insurance rates.
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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. Your auto insurance monthly payments will seem more at first, but they will average out over time if you are taking advantage of savings available to you all year.
If you’re shopping around for the best deals on auto insurance, and the cheapest premiums available, a more extended agreement usually means less you need to budget for auto insurance each month.
To recap, let’s take a look at the pros and cons of month-to-month auto insurance:
Pros to Monthly Auto Insurance Payments
- Provides more Liquidity – If you pay a large 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 switch insurance providers or cancel your auto policy if you need to. Without giving the insurance company all of your money at the beginning, you are left with more freedom.
Cons to Monthly Auto Insurance Payments
- 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 monthly cost average can really add up.
- Inconvenience – You will be forced to have to pay bills every month instead of once per year.
Not sure how much your coverage will cost? To get a better idea check out this auto insurance cost calculator guide.
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 auto 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 the best auto insurance companies are willing to give back in exchange for just a few extra months! Get quotes on the most affordable auto insurance policies available near you by simply typing your ZIP code into our free quote tool below.