The Benefits of Paying a Car Insurance Premiums in Full Vs In Installments
Every auto insurance company offers several different
options for paying your vehicle insurance premium. Several car insurance firms
let you pay over the phone or online by electronic check or credit card, while
others will require you to send in a check payment. You may also have the
option to make an installment payment or pay for your insurance premium
up-front, and you will save a few dollars each month in penalties and
transaction fees.
Annual premium payments typically do save you money over the
course of the year, and can also help you save time because you don't have to
worry about making a payment by a certain due date each month. Here are some
important things you should know about paying your car insurance in full:
ost Benefit
of Paying Car Insurance in Full
A large number of car insurance firms offer the option of
making quarterly or perhaps even monthly payments for a fraction of the yearly
premiums as a convenience for their customers. Whether or not paying up front
will be beneficial for you depends on your specific circumstances. For some
people on a tight budget, it is simply easier to pay in installments. In these
cases, the car insurance provider can set up an auto payment with your checking
account and deduct the payment each month automatically.
However, there is typically a fee associated with making
installment payments. In some cases, you will be paying up to $10 or more per
payment and may also incur billing and processing fees. If your policy is low
enough that you can afford to make a one-time payment, you will enjoy some
money-saving benefits.
Fees
Associated with Insurance Installment Payments
In addition to the monthly fees associated with making
insurance installment payments, you may be responsible for paying service fees
per transaction when paying by credit card, over the phone or online. Different
car insurance providers have different policies on transaction fees, but these
will add up if you choose to pay on a monthly, quarterly or installment payment
program.
When you choose to pay your auto insurance
premium in full, you may only be required to pay a single transaction
fee. In many cases, you can simply send in a check for the full amount and
avoid transaction or processing fees altogether.
Paying your car insurance in full offers a number of
money-saving benefits. Installment plans are designed as a convenience for
customers that may be on a tight budget, or for those who simply don't have the
full amount of their premium available to make an upfront payment. In most
cases, you can avoid many types of transaction and service fees simply by
making a one-time payment for your car insurance in full.
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