• Pros & Cons of Paying Auto Insurance in Installments

    When you think about paying auto insurance policies, some methods may seem better than others. Here are some of the drawbacks and advantages of making car insurance payments in installments rather than in one lump sum.

    Pros:

    Regular Debits – smaller payments can be easier on a household income. Drivers can even choose to have the regular small payments debited automatically at regular intervals.

    More Visibility – smaller terms for payment means drivers are more likely to see the results of a change in their insurance situations. It also means a driver is more likely to be reminded of higher premiums over a certain period of time and take steps to lower the amounts.

    Cons:

    Additional Paperwork – monthly or biweekly billing can mean a lot of junk mail in the mailbox. Paperwork on insurance and other household financial instruments adds to the general clutter in a house and leads to cutting down more trees to feed the flow of unnecessary postal mail across the country.

    Missing Out on Discounts – some insurers will give deep discounts for up-front payments because they get their money right away. Make sure you are not losing out by opting for regular smaller payments if you have the resources to pay up front and pay less over time.

    The above can help drivers figure out whether getting small, regular auto insurance payments is right for their particular situation. Some will be better served by these mini-payments, and for others, a bulk payment situation is much better. Figure out the best way to add auto insurance payments into your family budget.