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?

Answer
“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.”
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Emily Maracle
Answered on Aug 20, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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