5 Good Ways to Pay Your Insurance Premiums
There are so many things people have to remember everyday; there are also so many different recurring bills that need to be paid on a regular basis. Your insurance is one of those bills that can easily fall to the bottom of the pile since there isn’t a physical reminder that it exist and needs to be paid.
Thankfully there are a range of options available to help you manage your monthly insurance premiums that can reduce the overall stress of bill payment.
One Time Payment
You can pay your premiums once yearly, most companies offer deep discounts for consumers who pay a year in advance.
You also won’t have to think about paying monthly or suffering a lapse due to a missed payment.
Giving your insurance company permission to charge your checking account or credit card monthly is another way to remove the stress of monthly payment tracking.
A lot of companies offer the same discount for people who use the automatic option as they do for those who pay in full.
Logging in to the insurance website is a great way to pay your premiums and make any policy changes at the same time.
You can pay by check, credit card or EFT directly through the site.
Most companies also allow you to make changes to your policy online so you can get everything done at once with only a few clicks of the mouse.
Common Car Insurance Payment Plans
Annual Payment Options
While there a lot of companies that give you the option to pay once a year, many companies have started removing such options. A yearly policy is best suited to people who are preferred drivers.
You won’t have to think about paying monthly premiums and you won’t have to worry about your rate changing, no matter what happens. If you change your car, your policy will no longer be effective and a new policy will be required.
Paying your policy off in two installments, or semi annual is a great way to space your expenses into a more manageable amount. Your rates are subject to change during every payment cycle, so your policy premiums can go up or down during your semi annual payment term.
Quarterly Payment Options
Quarterly options are broken down into four easy payments. These payments are made every three months. There are still discounts for consumers who choose this payment plan, so it is worth considering.
If you are on a budget, monthly payments are a good way to manage your insurance while maintaining your budget. Late fees are the biggest problem on monthly plans, but if you opt for EFT or automatic payments, you can easily avid late fees and insurance lapse charges.
2 Months Advance Five Pay Option
Many people who start a new policy prefer the 2 months advance five pay options. It is popular because you will get a month free on your yearly policy. This is usually due to the fee charged when signing your policy. Your free month can be given at the beginning or the end of your policy term.
When you choose an insurance policy, it’s important to choose not only the right policy for your car and your lifestyle; but also the right way to pay your monthly premiums along with plan that fits your budget. You can always change your mind later on, but picking a plan that maximizes your discounts is always a smart move.
In addition to a good plan, a lot of insurance companies allow you to reduce your overall balance by paying extra on your regular payments.