A fully paid car insurance policy means that you won't have to make monthly payments. Car insurance payments are made by the policyholder every month, every six months, or every year to keep the policy active. Several major insurance companies offer discounts to drivers who pay for their policy in full in advance, but drivers often have the option of paying in monthly installments. Overall, car insurance payments are fairly simple and follow the general rules summarized below.
A 12-month car insurance policy tends to be more secure, since overall car insurance rates tend to rise over time. Finally, it's worth noting that most auto insurance quotes are based on a six-month policy that is paid in full at the beginning of each period. The additional amount depends on many factors, such as the year, make and model of the vehicle you want to protect. In addition to the car insurance deductible you choose, the cost of comprehensive and collision coverage will decrease if you choose a higher deductible.
The dollar amount of your car insurance payments will depend in part on your risk factors, such as your age, driving history and zip code. Keep in mind that a policy with extensive coverage may be more affordable than you think, since Progressive offers several discounts on car insurance that can help you get affordable car insurance with the right coverages for you. Buying a 12-month car insurance policy is better than buying a 6-month car insurance policy if you're a good driver with a clean driving record and the option is available to you. A 6-month auto insurance policy could also benefit drivers who will soon pay off a car loan, as well as those who improve their credit.
This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy. How often you pay your car insurance premiums depends on the company and your preferences, but annual or semi-annual payments are best. That's because most car insurance policies last six or 12 months, and most car insurance companies offer a discount (up to 20%) for paying the premium in full up front. However, many auto insurance companies have a grace period for late payments, giving you up to 30 additional days to make a payment before your policy is canceled.
In most cases, when an insurance company, agent, or lender refers to full-coverage car insurance, they are generally referring to all risks and collisions, in addition to any other coverage required by their state.