Most states require that you have car insurance. Unlike most of the bills you pay late, such as utility bills, when you pay for your car insurance, you're actually paying for your coverage in advance. If you've ever wondered if you pay for car insurance a month in advance, the answer is yes, in most cases you have that option. However, when you pay for car insurance coverage for the six- or 12-month billing cycle, your carrier usually offers you a discount.
In the past, car insurance companies only allowed to make semiannual or annual payments, which often created financial problems for car owners. When deciding on the type of auto insurance payment to make, compare prices and talk to several companies before making a decision. Semiannual or annual payments can give you the peace of mind of having car insurance coverage for the full six or 12 months you've paid. If you decide to pay for your car insurance for six or 12 months, you should carefully review your budget to see if you can financially manage the initial cost of those types of expenses.
Another big benefit of paying your car insurance premium every six or 12 months is that you can often get a discount on your car insurance premium, saving you money in the long run. Review your budget to help you determine what types of car insurance payments make the most sense for you financially. Paying for your car insurance on a monthly basis helps you save money and can give you the peace of mind that you'll have enough money to pay for the coverage you'll need. This payment system means that your car insurance is always paid in advance and you have coverage for your vehicle until the next billing cycle.
Fortunately, most of today's auto insurance providers offer you the option of paying monthly, semi-annually, or annually to help you manage your budget. You don't run the risk of skipping a bill like when you pay monthly. In addition, when you pay the full amount, you won't be charged any fees for late payments or your car insurance will be canceled for non-payment. This cycle of prepayment and coverage continues throughout your contract with your car insurance provider.
While paying for your car insurance on a monthly or semi-annual basis is usually convenient, if you pay for the entire 12-month billing period, you may be eligible for a discount on your car insurance.