July 23, 2011

Payment For Auto Insurance Online And New Options For Customers

Payment options can have a major effect on both the cost and the convenience of auto insurance. The good news is that many online auto insurance companies offer insurance options for simple, easy payments–and taking advantage of these options can lead to much lower car insurance rates. Drivers should investigate their payment options when buying a policy and regularly during the course of a policy to get the lowest possible rates.

Most car insurance companies offer the same payment options online as they do with mail-in and over-the-phone payments. This means that drivers can pay for in-full or in regular installments. Regular installments are typically monthly payments, which are obviously much less than in-full six month or annual payments. Regular installments can be easier for some drivers to budget, and online auto insurance companies often provide a way for payments to be taken automatically from a credit card, debit card, checking account or a PayPal account. Bills for these regular installments can be paid automatically or one at a time with most online auto insurance companies. However, in-full payments are much less expensive overall, because car insurance companies apply a discount to drivers' policies when they make in-full payments. The value of this discount varies, but it can cut the cost of a policy by as much as 10-20%. In some cases, this can be a hundred dollars or more. Drivers should consider saving up the money for an in-full payment when possible, as this is a great way to keep costs lower on a policy. Budgeting for a major payment can be difficult, but setting aside money each month can quickly make an in-full payment realistic.

Car insurance companies offer these insurance options for payment to meet the budgets of all drivers, and as there's less processing involved with online payments, many insurers will also apply a discount to drivers' policies if they pay online. Online payment discounts can further reduce premiums. Some car insurance companies even offer a discount for using a certain payment method, for instance PayPal, as sort of a joint promotion with that payment option's parent company. It's worth asking an insurance agent whether such programs exist, as every discount can be helpful when purchasing car insurance.

By investigating payment options, drivers can save a lot of money and stay on top of their policies. New types of coverage can be added to a policy easily and due payments can be handled in a matter of seconds. It's an easier, cheaper way to pay for car insurance, so every policy buyer should look into payment options in order to get the most out of a car insurance policy.