Is Monthly Car Insurance Right for You?

Monthly car insurance provides flexibility for a tight budget allowing you to pay your insurance premiums once a month rather than annually or bi-annually. Read more to discover the pros and cons of monthly car insurance.

If you’ve been shopping around for car insurance odds are you have found many payment options including annual, bi-annual and monthly car insurance payments. The major difference between monthly payments and the other two options is mostly price although monthly payments provide more flexibility for your budget.

Most auto insurance companies will give you the option to pay your car insurance premiums monthly rather than upfront in a large lump sum. Whether or not monthly car insurance payments are right for you will depend a lot on your financial situation as well as how much you are paying in premiums every year. Monthly payments can be a lot more convenient if you plan to change providers, move or even purchase a new vehicle in the next 6 months or so.

Monthly Car Insurance Pros

Liquidity - If you pay a huge lump sum for 6 months or 1 year of car insurance you could make your bank account hit rock bottom. Monthly payments are much easier on tight budgets.
Flexibility - If you plan to make any changes to your coverage you have much more control with monthly car insurance. Paying monthly allows you to avoid a huge car insurance bill every 6 months to a year.

Monthly Car Insurance Cons

Expensive - Monthly car insurance costs less upfront but costs more in the long run. Let’s face it, you’re going to need insurance for your car for the next 6 months to a year. Why not save a little money and pay up front if you can?
Inconvenient - Paying monthly means there’s yet another bill you have to remember to take care of every month. Paying up front allows you a few months free of worrying about paying your car insurance premiums.