Do car insurance companies charge you interest?
I'm budgeting for new car insurance. I've gotten some quotes online, but do insurance companies charge interest? Is it an additional fee on payment plans?
“Budgeting is an important tool when looking for new car insurance. When looking at car insurance payment plans, some options include interest.
Monthly payments plans are the most expensive and will include fees and interest. Every carrier is different, but most offer a lower amount of interest on EFT or bank account payments, which save you money over paying with a credit card.
If you choose to pay your policy premium in full every six months or annually, you won’t be charged interest. This means you can save a significant amount of money by choosing to pay your premium in full. On average, it’s at least $100 every term.
Since you’re already looking, use the Jerry app to compare quotes from top insurance companies in just a matter of minutes.
If you can’t pay your premium in full initially, you can always start saving for the future.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
How do you decide which car is best for you?
I've been test driving a lot of different cars. I don't know what type of car I should get as it's my first car. How do I know what right car is for me?
Aug 20, 2021
Does age matter when buying a car?
My grandma is looking for a new car. Based on her age, is there a particular type of car she should get? Does age matter when purchasing a car?
Aug 20, 2021
Will my car insurance decrease every year that I don't have an accident?
If I am accident-free, shouldn't the cost of my insurance decrease every year? I haven't had an accident in over 10 years. The cost of my insurance policy seems to be around the same price for every renewal.
Jul 06, 2021