March 14, 2010

How To Set Up A Plan For In-full Auto Insurance Payments

When purchasing auto insurance, it is always best to shop around at several different companies to insure that your auto insurance quote is the lowest that you can possibly get. Sometimes that will mean paying your auto insurance premium in one payment.

In most circumstances, the auto insurance that you get will be cheaper if you make a lump sum payment, rather than making monthly payments. When you begin to call each company to get an auto insurance quote, ask how the cost will differ based on method of payment. If you are told that your best price can be obtained by paying every six months, or even one time per year, then planning for that financially is your best bet. Here are some tips on planning your auto insurance premium so that it can be paid in in-full payments.

First, write down the amount given to you for car insurance quotes, both the monthly and the lump sum payment. Calculate how much money you will be saving by paying all at once. Most of the time when you are getting car insurance quotes, the insurer will even tell you the exact amount you can save with an all-at-once payment. This is often quite a significant amount of money, and keeping that savings in mind is important when you are planning to pay at one time. People are sometimes worried that they will not be able to come up with enough money to pay at once, but when you look at the savings it can be a big motivator. To plan for this lump sum payment, start by setting aside an amount equal to that which you would be paying for your auto insurance in a monthly payment each month. Keep this money in a separate account, and do not touch it for any reason – even pretend like that money does not exist. You may need to cut out a few extras’ like that specialty coffee every day, or those magazines that you really didn’t need anyway. However, cutting out those extras will net you quite a big amount of savings in the long term.

After saving that amount of money until you have accumulated an amount equal to the full term of the auto insurance policy, immediately contact your insurance company with the payment information. By that time, you will find that you will actually have extra money left over. This is the amount that you managed to save by paying all at one time! Most people find that having this extra cash after making a payment will be a great way to keep them motivated and to give them a real sense of accomplishment.