Here’s the way it works. Drivers are happy they have car insurance, especially when they end up in an accident and need to use it, but usually, they just aren’t very excited to pay the premium cost.
Is it better to pay on a monthly basis? What’s the average amount spent per month? While a driver’s premium is based on many different factors, it can be helpful to know a general estimate.
The average annual cost for car insurance is around $1,325 in 2016, averaging out to about $110 per month. Depending on your location, driving record, type of vehicle, named drivers, mileage, age, credit score, and gender, your rate will fluctuate hundreds or even up to a thousand dollars.
There are still multiple payment methods that you can use to pay for your auto insurance. Here are the types and benefits of each:
Auto Insurance Payment Types:
Yes, good old-fashioned in-person payments do still exist. You can write out a check or use a card to pay for your premium in person. The upside to this option is if you live close-by, and suddenly remember your payment is due, you can easily stop by and get the money in on time to avoid late fees or a coverage lapse.
You can always speak to your insurer on the phone to pay for your coverage. Just remember to compare rates first, before renewing.
Paying online is easy, convenient, and fast, especially for those of us that already spend half our days on the internet. Save time and pay your premium at once.
This is an automatic and easy payment method. Typically, when you sign up for an electronic funds transfer or bill pay, the payments are deducted automatically from your savings or checking account. Don’t ever worry about missing a payment again. Some insurers will even offer you a discount for paying this way.
Download your insurer’s mobile app and enjoy the convenience. Typically, you can pay for your premium, submit claims, review your policy, and even access your insurance ID on your phone. Never lose an ID again!
- In-Person Payment
- Phone Payment
- Online Payment
- Electronic Funds Transfer (ETF)
- Mobile Payments
Auto Insurance Payment Schedules:
You can pay part of your premium each month or set up an automatic amount to be taken out each month.
You can also pay for your premium in one lump sum, typically for a term period that ranges from six months to a year. Sometimes, your carrier will also offer a discount for paying ahead.
The monthly cost of car insurance can vary a lot by driver, location and even provider. Just know your payment options and monthly cost before signing. Remember, you always have the option to compare premium rates. Shop around to see savings today.
Photo credits: NY