Save Money on Your Insurance by Paying a Full Year’s Premiums

Did you know that if you pay your car insurance premium on a month-to-month basis – you are paying considerably more than you should? Stop paying too much for your car insurance by choosing other payment options – Read our tips below, so you can know everything you need to know about paying your monthly premiums, in advance.

In the midst of these hard financial times, nearly everyone is searching for ways to save money. While car insurance is a requirement (in most states), that doesn’t necessarily mean that drivers have to pay high premiums. Drivers can save $60 to $100 per year by choosing other bill payment options. One of the best ways to lower your premium is by paying your auto insurance premium in full, for an entire year.

Most insurance providers will offer a substantial discount to policyholders who are willing to pay six to twelve months of premiums — in one lump sum. In many cases, drivers who pay their insurance bills altogether can save a month or two’s worth of insurance, which is an incredible savings opportunity. However, some other insurance companies may offer less of a discount — saving the policyholder just a few dollars per month for paying their annual insurance bill, in full. Therefore, it is important to check with your insurance provider to find out if paying your premium in full (as opposed to paying monthly installments) will actually save you money, and it is also a good way to find out just how much money you will save, as well by choosing this payment option.

In addition, paying your insurance bill, in full will also save even more money because most insurance companies charge a small monthly fee for paying in installments. Typically, insurance companies will tack on, an extra two to three dollars a month for the added convenience of being able to pay monthly. Therefore, policyholders can save an additional $20 to $30 (or more) each year by utilizing this annual payment option.

When you have discussed your options with your insurance company and you have determined how much you will save – you can decide if paying your insurance premium in yearly installments (rather than monthly installments) is what you want to do. However, in this struggling economy, an extra $20 to $30 in anyone’s pocket can be a great help, (and that’s just the savings you’ll receive by eliminating the monthly installment fees) – not to mention the additional savings you’ll be eligible for by paying your yearly insurance premium, in full.

If you utilize any and all discounts that you are eligible for, through your insurance company (including, multi-car discount, multi-policy discount, safe driver discount, 55+ discount and any other discount that your insurance company offers) AND pay a full year’s premium – you can save a considerable amount of money on your insurance. Additionally, if you have traffic violations, speeding tickets, or higher rates due to having a teen driver on your policy – paying a full year’s premium can help to offset any additional costs that you may already be paying on your insurance bill. If you wish to save the most money – you will first, need to weigh each of your options to determine what you need to do (or the arrangements you need to make) to get the most “bang for your buck”. It is always better to keep your wallet or bank account as full, as possible rather than paying extra insurance costs when you don’t have to.

You may be wondering, “What is my insurance company’s motivation for offering discounted premiums when I pay my full year’s premiums?” Well, the answer is simple: Yearly premiums are good for the insurance company, as well. If you pay your annual insurance premiums, in full – it is a guarantee to them that you will be their loyal customer for, at least the next six months to a year (however, far in advance you have paid). Every business appreciates money, up front, therefore, the insurance industry is no different than any other business – a customer that pays for a product or service, in full (and in advance) is always welcome!

Contact your insurance provider, today to discuss your “money-saving options” to pay for a year’s worth of premiums, all at once. If you have the available cash on-hand to pay your auto insurance bill, in full – you should definitely consider this great way to save money on your auto insurance bill.

Leave a Reply