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Month to Month Car Insurance

Month to month car insurance policies are very simply defined as those in which the policy premium is paid on a monthly basis. They are not always simply a month-long policy, although some of them do only run a month in length. In fact, some of these policies come with three, six, or even 12 months of coverage, just like standard auto insurance plans. The most significant difference is in the way the premium is paid. Month to month car insurance offers flexibility to policy holders while it grants them payment options not always readily available in some auto insurance plans. If you are interested in getting into a month to month auto insurance policy, search online for coverage and find out for yourself if this insurance option is right for you.

Short-Term Coverage Offers Flexibility

One of the most significant advantages offered by a short-term auto coverage option like month to month insurance is the great flexibility it affords to policy holders who choose to take on this type of policy. If you sign on to a typical 12 month auto insurance plan, you are pretty well stuck with that particular insurance provider for the duration of the policy period. This is true for multiple reasons.

First of all, in many cases you have an obligation as a customer to front load your auto policy premium payments under these traditional 12 month policies. In many cases, a large down payment is required, and the balance of the policy premium is often due long before the covered period ends. This really limits your flexibility as a consumer. If you wish to switch companies or need to move out of state, you have to wait-and sometimes work hard by hassling the company-to get back remaining prepaid premiums you have coming to you. Added to this is the fact that in a large percentage of cases, you actually forgo some of the premium as a penalty for canceling coverage.

But by taking on the month by month payment option, this trouble is non-existent. For one thing, you rarely have to put down any money, aside from normally paying for the first month of coverage ahead of time. For another, since your payments are due monthly, you risk little by signing up for this type of coverage if you are thinking of moving at some point in the near future. The short-term coverage provided by month to month auto insurance gives you the same kind of protection as any other auto policy. You can choose the same sorts of coverage, such as uninsured motorist protection or comprehensive coverage. But if at any time, you need to make a change, you can simply end your coverage at the end of the month. You risk nothing, and you lose nothing in the way of prepaid premiums.

Monthly Auto Premium Payment Options

The flexibility in payments are one of the very best, most distinctive features of month by month car insurance plans. In an ordinary 12 month auto policy, as a consumer you may have a few options for payment. They are usually broken down into choices like these: you could pay for the entire premium all at once, and in doing so receive a small discount on your premium (or simply avoid an installment surcharge); or you could choose to make a down payment, then pay the policy off in two or three installments, including paying installment fees for choosing this option. In a lot of cases the down payment required is somewhat substantial, equal to at least two or three months' worth of coverage. And if you cannot come up with the money for the installment payments, your coverage will be canceled.

But by opting for month to month auto insurance coverage, your options for payment become much more flexible. To get coverage started, you usually only need to come up with enough money for a month's worth of the premium. In some cases, you can even get started with no money down. Once your policy is established, you are only responsible for paying for the coverage you actually use, as you use it. Every month, you will be invoiced for that month's portion of the policy premium. This is great news for a lot of drivers. Now more than ever, an ever-growing segment of the population is lacking the kind of cash flow necessary to prepay for this sort of expense.

On top of that, it makes little sense financially to invest money into coverage you will never use. If you know that you will not use, say, the entire 12 months of a yearly policy, it is senseless to get into one and face the prospect of having to work to recover the monies you have dropped into future coverage if you should choose to cancel.

The month to month coverage option makes sense for anyone who is living under a very tight monthly budget, living paycheck to paycheck and barely getting by. Having to expend hundreds or maybe even thousands of dollars on car insurance ahead of time can greatly compromise your ability to attend to your other monthly expenses. It's also a great option to consider for those of us who are uncertain of our future living arrangements.

Maybe you're a military serviceman awaiting your next assignment. Or maybe you're someone working for a company who has had to frequently work out of state just to stay afloat. A third group this option would appeal to is the group thinking about getting rid of their cars altogether. If you are trying to sell your car and do not intend to replace it, you obviously still need to carry coverage in the meantime. But you should probably not tie yourself to a policy that requires a lot of up-front money or a long-term commitment. Month to month car insurance is an option well worth looking into for a lot of drivers.

Search Monthly Car Policies Online

If you are reading up on the month to month auto insurance option and are starting to think maybe this is the way you should go for your next auto policy, it is easy to get yourself into a policy simply by shopping online. There are many top-quality companies offering this kind of auto insurance coverage. Many of the auto insurance providers who have grown up online appeal to drivers with unusual coverage needs. Month to month coverage is nothing new to the auto insurance industry, but its popularity has increased in recent years for both financial and other reasons.

Month to month car insurance is definitely not the right choice for everyone. For example, you will pay some kind of surcharge or premium for this option, often a flat percentage of your policy premium. If you have the means to prepay for your annual premium, you may be better off doing so. But this is an option many of us should carefully consider when it comes time to pick put a car insurance policy. Take a look at all the different sides of the month to month auto insurance option and get the whole picture before making a choice.

 

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