Does it matter how I pay for an insurance policy?

My insurance company offers monthly payment plans or paid-in-full options for six months. Does it matter how I choose to pay?

Answer
“Choosing whether to pay monthly or pay in full revolves around your financial situation.
When looking at payment plans for car insurance policies, you can save money by paying in full. Most insurance carriers offer a discount if you choose to pay your premium in full every six months or annually, depending on the length of your policy. However, you have to part with this money up front, which could mean hundreds or even thousands of dollars out of your pocket. If money isn’t an obstacle, this is the smart decision.
If you choose monthly payments, you may have to pay a service charge and you won’t receive a discount. Depending on whether you pay with a credit card or bank account can also influence this price. However, this breaks down your car insurance payments into bite-size pieces, which could be the better option if you don’t have the money to pay for the entire policy outright.
Regardless of which payment method you choose, you can always save money by shopping around for car insurance. Use the Jerry app to compare rates and find the perfect coverage for your needs.”
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Emily Maracle
Answered on Aug 18, 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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