Why should I pay car insurance in full instead of monthly payments?

My parents said I should pay my car insurance premium in full every six months instead of monthly payments, but it costs $700. Why should I pay that much up front?

Answer
“Paying your car insurance premium in full every six months will save you money. Depending on the insurance carrier, this could reduce your premium substantially compared to monthly payments.
When you pay monthly, car insurance carriers typically charge fees for payment processing and rarely offer discounts, as the risk of non-payment or declined payments becomes higher.
If paying your policy premium in full would cause financial hardship for you, don’t do it. You can always start saving for your next renewal period and can pay in full when your policy is up for renewal.
But if you want a surefire way to save money, make sure to shop around. Although $700 for a biannual premium seems like a good deal, you might be surprised what you find when you look around. Check out Jerry to compare rates from dozens of insurers in just a few minutes.”
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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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