Many car owners find making insurance car payments frustrating and stressful. This is especially common to car owners who have never filed any claim to their insurer. Most insurance companies are aware of these struggles and look for better ways to ease this burden.
One of the ways they are doing this is by offering their customers different payment methods and plans. When you find an experienced car insurer, they will offer payment methods that include automatic drafts, partial and full annual payments. Depending on your situation, you will choose the most appropriate payment plan for you.
Let’s expound more on this.
- Full annual payments
Paying your car insurance in full is one of the best ways to make the payment. This is because, most insurance companies will offer a discount percentage on the amount of money you are supposed to pay. Plus, it will save you a lot of headache making partial monthly payments.
Apart from the discount, making full annual payments is generally cheaper. It also takes a huge burden off your shoulders and eliminates late payments that most often than not, are accompanied by penalties.
On the other hand, making full payments can be hard for some car owners. With the current economic crisis, not many car owners will have such a large amount of money stashed away somewhere awaiting car insurance payment.
- Monthly payments
Many car owners find monthly payments far much better. You could opt to pay in cash or using your credit card or electronic check.
These payments can be made online, to the insurer’s bank account, through an agent.
With monthly payments, most car owners are able to organize themselves and plan their finances well. This is the best payment plan for people who will have a hard time coming up with the full amount. However, to make the payments seamless, make sure you do not lapse on any of the payments.
- Electronic funds transfer
Electronic funds transfer is another form of monthly payment. With it, your insurance company taps into your bank account, be it savings checking or credit card account and withdraws the monthly insurance payments automatically.
Some insurance companies encourage this form of payment and signing up for it subjects you to discounts.
The best option here is to have them make deductions from your checking or savings account. With these to, you just set it and forget about it. With credit card, you have to keep on updating your expiration date. Although, using your credit card allows you to gain reward points with every payment.
After the excitement of purchasing a new car has died down, you have to sit down and think which would be the best insurance payment option for you. This is an important step that should not be ignored. Doing so, ensures you have an easy time with your insurer as well as it avoids any rub in with the law.
Most insurance companies will allow their customers to overpay with their monthly payments to reduce the remaining balance.
A wise car owner will take car insurance payments seriously and prioritize on it.