Save Money on Car Insurance with a Lump Sum Payment
When you purchase a car insurance policy, you are given the option of paying one lump sum payment for your insurance coverage or paying monthly payments. Many people decide that they will pay their auto insurance premiums in monthly installments. However, this can be a costly mistake to make each month.
On average, people could save around $23.50 per month or $141 for a six month policy. If you add it up then you would save more than $280 a year just by paying for your auto insurance up front. Many people have coverage for 50 years so that could save thousands of dollars.
Many people will say that they cannot afford to pay their insurance premiums up front. Times are tough and many families are struggling. They do not see the added benefit to not paying in monthly installments. One great advantage is that you never have to worry about your auto insurance coverage lapsing or being canceled. If you pay up front then you can make sure that your premiums are never late. This is a great safety net for families. If you suddenly become unemployed, at least you know your auto insurance premiums are paid up to date.
Many auto insurance companies also charge convenience fees. For example, if you make your premium payments online or by phone, you will typically be charged several dollars. If you use these services every month then the charges really do add up.
It is a good idea for people to consider budgeting ahead for their insurance premiums. Every six months, a driver will have to have their auto insurance policy renewed. You can set aside money each month in a savings account so that once your policy comes up for renewal, you can pay for it in one payment.
It is important to remember that saving money needs to be a priority. Always shop around for your car insurance coverage. You do not want to have any regrets if you find an insurance policy with lower insurance premiums somewhere else.
If people can search hard for low car insurance rates then they will be more likely to be able to make a lump sum payment. People who are in financial dire straits should not have to pay more because they have limited financial means. Everyone should be able to save as much money as possible and make sure that they can pay their insurance premiums on time.