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Can I pay my car insurance monthly?

Yes, it is possible for you to pay for your automobile insurance policy in a monthly installment plan. With a traditional insurance provider, you will generally be required to pay the first month's fees as a down payment for the other months. The remaining balance for the purchase price of your policy will then be divided by the number of months worth of coverage you have. For example, if your policy cost you $700.00 for six months worth of coverage, you would pay $100 upfront. The remaining $600 would be divided by six months, and you would pay $100 a month until the policy was paid for.

There is an alternative to this traditional option called monthly insurance. With this option, a policy holder will pay a premium each month. A month is considered to be a period of thirty days. As long as they would like to keep the policy in effect, be it one month, six months, or twelve months, the policyholder will make a payment on the first of each month. This is similar to a pay as you go phone plan, but it is geared toward insurance coverage. Under this policy though, you will likely pay more money because you have not signed a contract with the company. Discounts are offered for longer contracts as they mean more business for the insurance carrier.

You should know that monthly payments are going to cost more money than paying for everything upfront. That said, upfront payment may not always be feasible, so at the very least you should look for low rates to save money. When you go through some form of comparison shopping, you will receive numerous quotes from different providers who offer policies with monthly billing cycles. This easy process will allow you to shop around for affordable rates. Finding a company that requires a low down payment and affordable monthly payments should not be difficult. Due to difficult financial times in our economy, every consumer is working within a tightly constricted budget. You should be aware, though, that the higher of a down payment you make, the less expensive it will be for you overall. This is due to the fact that the billing fees and penalties are lowered.

Talking to an insurance agent from your provider can be of value to you. Insurance agents are familiar with the modes in which their companies operate, and they can suggest maneuvers you can make to avoid unnecessary expenses and fees. You will be the only person that knows what you can afford though. Adjust your policy to a point that you know you can make the payments.

 

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