Do you want cheap car insurance? When you shop for low auto insurance rates, how you will pay, and the payment plan you choose, will decide which auto insurance company has the best rate for you.
Visit my site to get price quotes, complaint statistics, and customer service & claims satisfaction ratings for all the leading auto & home insurance companies in the USA. How is your insurance company rated? Does it have a lot of customer complaints? Find out at my home page and CLICK HERE!
If you want the lowest rate, pay your auto insurance in full, whether you have a 6 month policy or a year policy. I know car insurance can be expensive, but if you can plan ahead and save, the savings for paying in full can be worth it.
Fortunately, I’m able to pay my car insurance in full every 6 months. Let me show you the possible savings, by showing you a personal example. Not too long ago, I received an auto insurance quote. The company quoted me $336.78 for 6 months, if I wanted to pay monthly. But if I paid in full, the price would be only $298.78.
My savings for paying in full is $38 every 6 months. Is it worth the inconvenience to pay in full to save only $38?
Yes! I am a middle-aged guy with good credit, a clean driving record, and one car. So, my car insurance is not expensive. I may be considered a low risk driver, but keep in mind, I could easily be paying double what I pay now, if I did not shop my auto insurance with all the leading auto insurance companies each year.
Always remember the biggest auto insurance discount you can get is shopping for the best-priced auto insurance for you, and my link will take you to my Web page rating all the leading auto insurance companies, so you can find the best price & car insurance company for you.
I may be saving only $38 by paying in full, but if you consider the percentage savings, I am saving over 10% every 6 months. The savings is equal to an investment earning 20% a year!
I could pay monthly, and leave the money I’m not using to pay my insurance in full in the bank to earn interest, but I would need to earn over 20% on my savings, to have more money in my bank account at the end of year, than if I chose to pay my auto insurance in full.
If you have the money, and the lowest priced auto insurance quote offers a discount for paying in full, you should take advantage of it.
Most auto insurance companies offer 6 month policies, but some offer annual policies. When considering annual policies, you want to make sure you are getting a rate at least 5 percent lower for paying in full, than the annualized price of any other company’s auto insurance quote.
For example, Company A offers me an annual car insurance quote for $600, if paid in full. Company B offers me a 6 month auto insurance policy at $310, if paid in full, which adds up to $620 per year. Company A is less expensive, but the amount saved is only about 3% for the year. Three percent is a good return, considering today’s low interest rates on savings accounts, but I would be less likely to change to Company A, if I was already insured with Company B, for such a small savings, and having to pay a lot of money at once.
If you are like many people, you can’t afford to pay your auto insurance in full, and you need a payment plan. My next blog post will discuss how to save money, by choosing the right payment plan for you, if you can’t pay in full.
What do you think? Is it worth it to pay your auto insurance in full? Leave me a comment on my facebook page. Or, you can e-mail me at firstname.lastname@example.org if you have questions and would like my help. Follow me on Twitter for important insurance consumer news and new blog entries at CarInsWatch.