Monthly car insurance is another way of saying that you will pay your 6-month policy on a month-to-month basis rather than all at once. It can also be temporary or short term insurance. If you know you will only be driving a car for a month, it does not make sense to purchase 6 months worth of coverage. Most commonly, however, it means that you pay for your policy in monthly installments. The insurance company gives you a 6-month or 12-month premium and the option of paying all at once or in monthly installments. If you choose the latter, an average monthly price is worked out with an installment fee in addition to that. If you are in the market for either type–paying on a month-to-month basis or temporary car insurance, these tips can help.
4 Tips to Pay for Car Insurance by the Month
Break up your premium into payments: Go through the normal procedure for purchasing a car insurance policy. You will receive a 6- or 12-month rate and the option to pay it all at once or in installments. If you pay your bill online, you can select to pay the amount due that month or the total amount due. In this way, you can pay for car insurance by the month. Keep in mind, however, that you will pay more in full because of the monthly installment fee.
Inquire about temporary insurance: Ask your car insurance provider about temporary policies. If your car insurance is up for renewal, but you know you won’t need it for more than a month or two afterwards, inquire about month-to-month insurance. Because it’s not a full policy, the premium might be prorated higher–but maybe not.
Check with the competition: Auto insurers will welcome short term car insurance requests because it means less time they have to insure a vehicle. This lessens their liability while still being able to offer insurance to you. It pays to make several calls and receive several quotes.
Short term insurance for rentals or test drives: When renting a car, borrowing a car or for test driving purposes, short term auto insurance is a sensible idea. Don’t expose yourself to liability damages even for a short time. Paying for auto insurance by the month is a great way to protect your finances while you are in temporary possession of an automobile.
Month-to-month auto insurance or short term coverage is available for many different reasons. If you simply wish to pay your auto insurance premium in monthly installments because you cannot afford the entire premium up front, that option is available to you. If you know, however, that you will only be driving for a short time, buying insurance by the month will keep you protected and save you money. Insuring yourself even for a short time is the responsible choice, and with monthly car insurance it is well within your reach.