If you’re curious about monthly car insurance and want to know whether month-to-month auto insurance plans make sense for you, it’s important to compare the pros and cons of short term coverage. While you may miss out on the discounts and lower rates offered to drivers who pay for a full policy upfront, monthly insurance payments can keep your budget flexible.
Here are the best ways to get cheap monthly car insurance rates from the best companies.
What Are Monthly Car Insurance Plans?
Monthly car insurance plans are policies that require month-to-month payment and come with no contract. While most auto insurance policies come with three, six, or 12-month terms, insurance coverage paid in monthly installments offers more flexibility. Almost every insurance company in the United States offers month to month insurance for drivers, so it’s easy enough to find and any driver can request this payment period.
However, not every policy that allows you to make monthly payments is technically a month to month insurance plan. Sometimes, even though you’re paying premiums from one month to the next, you may be responsible for those payments for a minimum amount of time.
Always read your policy proposal carefully before you start coverage to be sure you are not contracted to make monthly payments for a set period of time. In this sense,
Advantages of Month to Month Auto Insurance
There are a number of benefits associated with choosing monthly auto insurance. Here are some advantages of these short-term insurance plans.
- Pay on Your Terms – Rather than paying a deposit and making an upfront payment to cover 3, 6, or 12 months of coverage, monthly insurance plans allow you to pay for your policy as you use it. This makes insurance far more affordable for families with tight budgets, and it allows drivers who may not otherwise be able to afford insurance to drive legally and safely.
- Increased Flexibility – If you pay for a 12-month policy but decide that your insurance provider just isn’t a good fit, getting a refund for the portion of the term that you prepaid can be a hassle. Instead, when you opt to make monthly payments on your insurance plan, you are free to switch companies or cancel coverage more freely.
- You Can Try New Policies – If you’re not sure whether your new policy or company is the best option for your needs, monthly insurance can let you test out an insurer’s service and coverage. If you decide you don’t love it, you can change your coverage, and if you do, you can purchase an annual policy at any time.
Disadvantages of Monthly Car Insurance
Month to month insurance is not without its faults, and it’s important that consumers keep these factors in mind before making a final decision.
- Higher Premiums – Insurers want you to purchase your auto insurance by the term, and the best companies will offer you discounts on paying your premiums upfront. To get the cheapest car insurance, most insurers will ask you to buy a 12-month policy. Discounts range from 5% to 10% off your total cost of coverage. This difference between monthly insurance payments and a full 12-month policy could be hundreds of dollars for the exact same protection.
- Fewer Benefits from the Company – Perks and benefits like roadside assistance, hotel and travel discounts, and other rewards may only be available if you purchase at least three months of insurance in advance.
- The Risk of Missed Payments – Paying your insurance bill once a year instead of once every month is convenient. Similarly, the more often you have to do something, the more likely it is you’ll forget. That’s another of the biggest downfalls associated with month to month insurance – the potential for missed payments. If you choose to go this route, consider setting up automatic payments just to be safe. Failure to pay for your policy on-time can result in late fees or termination of coverage.
How To Get Cheap Monthly Insurance
Learning how to get cheap monthly car insurance that fits your needs and budget is easy. Ideally, the best way to save money and find cheap insurance quotes is to be a good driver with a clean driving history.
- Drive Safely – Being a safe driver translates into having a good driving history. If you have no accidents, tickets, or suspensions on your driving record, you are in a better position to ask for lower premiums.
- Keep Your Credit in Check – Drivers with good credit get lower monthly insurance rates than those who have bad credit. Although buying insurance with bad credit is possible, you’ll pay higher prices.
- Avoid Lapses In Coverage – The ability to pay month to month for your auto insurance does make your plan flexible. However, it’s also easier to miss payments that could result in lapses. Avoid this at all costs as even a very short lapse could result in a significant price increase.
- Ask for Discounts – Insurance companies offer plenty of discounts to help you save money and lower premiums. Just because you don’t qualify for one doesn’t mean you may not be eligible for others. If you’ve recently taken a defensive driving course or your car has anti-lock brakes and side-curtain airbags, you may get a cheaper policy. From multi-driver discounts for families to good student discounts for teenage drivers, ask your insurer about the different types of discounts you may apply for.
- Shop Around, Look for Discounts and Compare Rates – These days, car insurance quote comparisons are easier than ever. Consumers can compare rates, coverage options, and discounts from multiple companies instantly.
Cheap Monthly Car Insurance Quotes
If you want to know how much you can save by paying your premiums annually instead of monthly, all you have to do is enter your zip code and start an insurance comparison online. Getting instant auto insurance quotes from the top companies in your area can help you find a cheap policy that fits your unique needs and budget.
Ultimately, it’s important to calculate exactly how much each payment term is costing you and whether a cheap month to month plan is really helping you save!