When you buy auto insurance, your agent will likely ask you how you want to pay for the policy. No one likes to pay bills, but paying your auto insurance bill should be a priority.
Many insurance companies offer different avenues for paying your premiums. You should always consider the best options that fit your bill. Here are some tips to consider when deciding how to pay your auto insurance premiums.
Why You Should Always Pay
Failure to pay your premiums on time can result in late fees and other charges associated with late payment.
However, lapsed coverage is much more concerning than late fees.
Many types of coverage will lapse if an insured person doesn’t pay the insurance bill even once. Just one day of lapsed or cancelled coverage can result in higher liability. In fact, many states require penalties if a driver goes without proper auto insurance. Being without auto insurance makes driving much more dangerous for everyone on the road.
When Should You Pay
One thing that many insurance companies ask you is how you want to structure your payments. You are often able to pay your bill monthly, quarterly, semi-annually or yearly.
The best way to choose a way to pay is to consider both the frequency of payments and the cost of each payment.
Paying by the month will often result in lower payments, but you must remember to pay every month and not forget. Alternatively, paying semi-annually or yearly means that you won’t have to worry about paying every month. But, you will have to be certain that your finances can handle such large bills at one time.
How You Can Pay Your Insurance Bill
The good news is, insurance companies usually offer a variety of ways to pay your premium. Some payment forms include paper statements, online payments, payment by phone and automatic payments.
In fact, some companies offer discounts for paying by certain methods. If you pay via internet, you may qualify for certain processing discounts for going paperless. You may also get a discount for enrolling in auto-pay.
Choosing how to finance your auto insurance policy can sometimes confuse you, but we are here to help.
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