FAQs
Is it better to pay car insurance monthly or yearly?
Each comes with pros and cons. Monthly payments are the more affordable option in the short term but often come with installment fees and put you at risk of missing a payment. An annual premium costs more upfront but you might get a paid-in-full discount.
Do I get car insurance discounts for paying in full?
Many insurers offer policyholders a paid-in-full discount that can shave anywhere from 10-20% off the premium for the policy term.
What happens if your car insurance lapses?
If your policy lapses, contact your insurance provider and see if you can get your policy reinstated. If you make a payment fast enough after the grace period ends, insurers can sometimes reinstate your policy—but a lapse in any case comes with higher premiums down the road.
If you can’t make a payment, you’ll need to shop for another policy. Gather auto insurance quotes from at least 3-5 providers to find the most affordable car insurance costs after your lapse.
Can I cancel a car insurance policy that I paid for in full?
Yes, you can cancel your car insurance at any time, no matter how you paid. If you paid your entire premium upfront, you’ll probably receive a refund for the unused amount—sometimes minus an administrative or cancellation fee.
Does paying monthly insurance cost more?
Monthly payments typically cost more than if you pay in full at the beginning of your term due to installment fees. You’re also at greater risk of missing a payment.
Do insurance providers have grace periods for late payments?
Yes, most insurance companies offer a late payment grace period of between 10 and 30 days.
Does my driving record affect auto insurance rates?
Your driving history has a significant impact on your auto insurance premiums. A history of violations like DUIs, speeding tickets, or at-fault accidents will result in higher rates. A clean driving record without violations or insurance claims helps preserve better car insurance coverage options and lower car insurance rates.