Is car insurance paid a month in advance?
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UPDATED: Jun 12, 2019
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- Most car insurance companies offer monthly payment plans
- Monthly payments can be made online by using a debit or credit card
- Most car insurance policies are written for six months
- A comparison tool can help you find an auto insurance policy that better fits your budget
Car insurance is designed to protect you against certain types of financial loss if you are involved in a car accident. Most car insurance policies are paid on a month-to-month basis.
At the beginning of your policy, you will pay your car insurance company your first month’s premium. This payment schedule helps ensure that your car insurance is up-to-date and valid until your next payment date.
Don’t pay more for insurance than you need to. Enter your zip code into our FREE comparison tool to find the best price with coverage that’s right for you!
Car Insurance Premiums
Car insurance premiums are either paid per month or per policy. Each car insurance policy is typically written for six months, and most car insurance carriers will allow you to pay your entire premium up-front, or they will work out a monthly payment arrangement with you to make the policy more affordable.
When you pay your monthly premium, your policy is paid up-to-date until your next payment is due. If you miss a payment or are late, your insurance company may opt to cancel your policy.
If you are worried about not being able to afford your monthly insurance premium, you can use a comparison tool to find a policy that better meets your budget while providing you with the insurance coverage you need to be able to drive legally.
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Benefits of Paying Car Insurance Monthly
There are several financial and personal benefits to paying your car insurance on a monthly payment plan versus paying your entire premium up front. One of the biggest benefits is knowing when your car insurance is due each month rather than waiting for your insurance carrier to notify you by mail about your entire premium payment.
- More affordable for most individual and family budgets
- You can set up automatic payments by using a credit or debit card
- Most Insurance companies have web portals where you can review and pay your monthly statement
If you choose to pay your car insurance monthly, it is imperative that you pay your premiums on time.
The number one reason most car insurance policies are canceled if for nonpayment or for making multiple late payments.
Most states, like Illinois, list the reasons your car insurance policy may be canceled by your insurance company.
If you notice that you cannot afford your monthly payment, or you will be late for a few days, it is best to contact your insurance carrier and discuss your options.
If you find that you habitually cannot afford your car insurance payments, you may want to look up available insurance policies with a comparison tool to find one that better meets your monthly budget constraints.
- Monthly car insurance payments must be made on or before your due date
- Late car insurance payments can result in the cancellation of your policy
- A comparison tool can help you find a more affordable car insurance policy
Ways to Reduce Your Car Insurance Premium
There are several things you can do to help make your car insurance more affordable.
- Raise your deductible – Some types of car insurance policies require deductibles. By taking on more of the financial responsibility for future accidents, you are reducing the risk of your insurance company.
- Ask about relevant discounts – There are discounts available for safe drivers, car with certain safety features and individuals who have multiple policies or cars insured with the same company.
- Research Other Policies and Carriers – Different insurance companies have different rates because they use different formulas to assess driver risk. Using a comparison tool can help you quickly find other policies from various insurance carriers that may be more affordable and offer better coverage than your current policy.
- Reduce your insurance coverage – If you own your car or drive an older car that is paid off, it may be beneficial for you to reduce your insurance coverage. Switch from full coverage to liability coverage or by adjust the maximum amounts your insurance company will pay out if you are in an auto accident.
When it comes to paying your car insurance in a timely manner, most insurance companies will allow you to pay the bill in monthly installments.
However, it is important that you take steps to avoid making late payments. If you find that your car insurance payment is too high, you can quickly compare new insurance policies using a comparison tool.
Comparison tools for car insurance allow you to input your personal information along with your driving habits and preferred types of policies. The tool then returns the results that most closely match your needs.
Quickly research multiple insurance policies in order to find the car insurance that best meets your personal needs! Enter your zip code into our FREE comparison tool to get started!