Monthly Car Insurance - Best Way to Go?

The average car insurance policy is probably one of the larger bills you have to pay which is why many people chose to pay a monthly car insurance  premium rather than paying for a six or twelve month policy in one lump sum from the offset.

If you can afford to do so there are certain reasons why paying for a policy in one lump sum is a better idea than breaking it up  into monthly car insurance payments. Many insurance companies will offer a fairly substantial discount if you pay the whole policy off up front. The simple fact is though that many of us simply cannot afford to do that so we have no choice but to try and negotiate the best monthly car insurance premium we can get.

If you are already using a car insurance company that has been meeting your needs then you should contact their customer service number to see if they can give you monthly car insurance estimate. The car insurance industry is a very competitive one and many times a company will make adjustments and spread out payments to keep you as a customer. You just have to take the time to ask. 

If on the other hand you are unhappy with your current company and the monthly car insurance payment plan they are offering seems a little too expensive, or you have no current company anyway you should spend some time doing a little comparison shopping. Most insurance companies have online premium estimators that are very accurate and there are also a number of websites that will help you shop and get quotes from several different companies at once.

If you do decide to comparison shop online take the time to read through everything carefully. In most cases you will be offered several different payment plans depending upon the level of coverage you choose. If you are leasing or financing a car the level of coverage you have to carry is normally mandated by your lender and in order to protect their investment it usually has to be very comprehensive. Failure to comply with these requirements can lose you your car, even if those payments are always on time.

If you own the car outright your insurance options are far more extensive. Some people get carried away with car insurance extras and end up with a monthly car insurance bill that is far higher than it needs to be. For instance if you only paid $1,500 for the car in the first place spending $200 a month to insure it (which will of course work out to $2,400 for the year) makes very little financial sense and you should consider carrying the minimum amount of coverage you can while still meeting your state’s legal car insurance requirements

Another way to try and score yourself the best possible deal on monthly car insurance payments is to work with an independent car insurance broker. These individuals usually have a great deal of experience working with a number of different car insurance companies and can sometimes negotiate a better rate than you might have been able to get by yourself. You will have to pay a fee for their services though so this may not be the best option for those who are really in a tight budgetary situation.