Great Reasons to Pay Your Car Insurance Monthly
Car insurance is something that we just can't live without.
It protects both us and our cars, and any bank that loans us money to purchase a car will also require car insurance.
It can be challenging to pay a huge lump sum for car insurance once a year or even twice a year.
No matter how cheap our auto insurance may be, if it is paid for in a lump sum, it will feel expensive.
Did you know that you are not locked into paying that way? Many insurance companies will allow you to pay your premiums divided into monthly amounts.
Here are some great reasons why you may want to pay your insurance monthly.
The first reason is liquidity.
You know that when you set up your monthly budget, you begin with your income and then subtract all of your required expenses to see how much discretionary income you have left over.
Out of this, you may allocate some for savings accounts, investments, vacation funds or many other things.
If your car insurance is allocated this way, you won't jeopardize the other items you normally use your discretionary income for by having to scrape together a large sum once or twice a year.
Right along with this is the whole idea of budgeting.
Most people tend to have a steady income that they can count on to be the same month in and month out.
Most bills, such as mortgage, auto loan, and utility bills, are due on a monthly basis as well.
By organizing a monthly budget, you can easily see what you are spending and what you have left.
By including your car insurance in this budget, you can easily keep track of it and keep your monthly income and expenses relatively steady.
Many people also opt for equal payment plans of such utilities as electricity or natural gas because it is harder to pay lots in the winter after paying just a little in the summer than it is to pay an average amount each month.
Next, many mortgage companies make it easy to make a monthly payment by setting up an automatic payment plan where they will actually electronically withdraw the funds from your bank account each month.
You don't have to worry about writing a check and getting it mailed on time because it is already taken care of.
If your insurance company doesn't do this for you, many financial institutions have an online bill payment feature that allows you to set up payments to your creditors and make them automatic.
Doing this will save you a headache because you know it is already taken care of.
This next reason is one that many people don't think about, but they really should.
Being on a monthly payment plan makes it much easier to change insurance carriers any time that you want to.
If you have been with the same carrier for many years, then you may wonder why anyone would want to change.
However, if you do some looking around, you may find that there are better alternatives to what you are currently being charged and if you current on your monthly payments, moving to another company can be fast and easy.
It protects both us and our cars, and any bank that loans us money to purchase a car will also require car insurance.
It can be challenging to pay a huge lump sum for car insurance once a year or even twice a year.
No matter how cheap our auto insurance may be, if it is paid for in a lump sum, it will feel expensive.
Did you know that you are not locked into paying that way? Many insurance companies will allow you to pay your premiums divided into monthly amounts.
Here are some great reasons why you may want to pay your insurance monthly.
The first reason is liquidity.
You know that when you set up your monthly budget, you begin with your income and then subtract all of your required expenses to see how much discretionary income you have left over.
Out of this, you may allocate some for savings accounts, investments, vacation funds or many other things.
If your car insurance is allocated this way, you won't jeopardize the other items you normally use your discretionary income for by having to scrape together a large sum once or twice a year.
Right along with this is the whole idea of budgeting.
Most people tend to have a steady income that they can count on to be the same month in and month out.
Most bills, such as mortgage, auto loan, and utility bills, are due on a monthly basis as well.
By organizing a monthly budget, you can easily see what you are spending and what you have left.
By including your car insurance in this budget, you can easily keep track of it and keep your monthly income and expenses relatively steady.
Many people also opt for equal payment plans of such utilities as electricity or natural gas because it is harder to pay lots in the winter after paying just a little in the summer than it is to pay an average amount each month.
Next, many mortgage companies make it easy to make a monthly payment by setting up an automatic payment plan where they will actually electronically withdraw the funds from your bank account each month.
You don't have to worry about writing a check and getting it mailed on time because it is already taken care of.
If your insurance company doesn't do this for you, many financial institutions have an online bill payment feature that allows you to set up payments to your creditors and make them automatic.
Doing this will save you a headache because you know it is already taken care of.
This next reason is one that many people don't think about, but they really should.
Being on a monthly payment plan makes it much easier to change insurance carriers any time that you want to.
If you have been with the same carrier for many years, then you may wonder why anyone would want to change.
However, if you do some looking around, you may find that there are better alternatives to what you are currently being charged and if you current on your monthly payments, moving to another company can be fast and easy.
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