Monthly Car Insurance Could Be a More Affordable Option
If you are struggling to make ends meet in these hard times, you may want to consider monthly car insurance payments as opposed to paying out an annual lump sum. Most insurance companies offer this option. This will enable you to monitor your monthly expenditure more efficiently.
If you are going to consider this option, check on the interest that is payable on monthly installments before signing up. This can vary a lot between insurers. An insurer may give you a tempting quote for an annual cost but, by the time the interest is added to the monthly payments, you could end up paying more.
Therefore when you are making quote comparisons online be sure to check what rate of interest each insurer is adding to the monthly payment. It is very surprising to see just how much they vary. There is no standardized rate of interest for monthly insurance. This is charged at the discretion of insurers.
There are different methods of payment available. Some insurers will require the amount to be automatically debited from a banking account, while others will offer the option to pay via a credit or debit card. Before agreeing to give you any monthly payment option, all potential insurers will run a credit check on you. So make sure you have a good credit rating.
There are other situations when an annual policy is not viable. For instance, you may be trying to sell a vehicle. In this case, temporary car insurance would be a good alternative. A temporary insurance policy lasts for 28 days and cover can be obtained immediately. If you do not sell the vehicle within this time, you can renew the policy each month until it is sold.
This type of insurance is also ideal if someone else is going to drive your car temporarily. It is also useful if you want to drive a newly purchased vehicle. This will give you some breathing space while you organize annual cover for the new car. Temporary insurance is ideal in these circumstances.
Getting back to the subject of regular auto insurance paid on a monthly basis, you will receive a renewal notice before your policy expires. You will be given the option to renew it on a monthly basis, or you may wish to pay it in a lump sum if you can afford to. There is no doubt that monthly car insurance payments are a viable option to help manage your auto insurance commitments.
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