Do you pay for car insurance monthly? If so, you’re not alone. According to a recent study by the Insurance Information Institute, 43% of drivers pay for their car insurance monthly, while 16% pay for it every week and 28% pay for it every two weeks. It’s no wonder why so many drivers are in this habit: it’s easy, cheap and most importantly, it gives them piece of mind. However, there are a few things to keep in mind when paying for car insurance on a monthly basis. For one, if you get into an accident and have to file a claim, your premium may go up considerably if you have not beenpaying on a monthly basis. Also, remember that your policy may only cover claims made within certain geographical boundaries – so if you live in a state that has no-fault auto insurance, you may not be covered if you get into an accident outside of those boundaries. ###
What is car insurance?
Car insurance is a legal requirement in most countries. It protects you and the people or property you may hit while driving. Car insurance can also protect you if someone else is driving your car without permission. The type of car insurance you need depends on your location, occupation, and credit score. In some cases, you may be able to get discounts on car insurance if you have an annual policy or a good driving record.
Types of car insurance
There are a few different types of car insurance:
Comprehensive coverage protects you in the event that something happens to your car, such as vandalism or a crash. It typically includes coverage for damage to the car itself, loss of use, and repairs or replacements.
Collision coverage pays for damage to your car caused by another vehicle. This type of insurance is necessary if you plan on driving a lot and/or if you have an older car.
Property damage liability covers you financially if someone else’s negligence causes damage to your car or property. This type of insurance is important if you plan on driving with anyone other than a close family member.
Uninsured motorist protection pays for damages caused by someone who does not have any form of insurance. This type of coverage is essential if you’re involved in a accident with an uninsured driver.
Factors that influence your car insurance rates
There are a few factors that can influence your car insurance rates, including your driving history, where you live and the type of car you drive.
Your driving history:
If you have a clean record, your rates could be lower than someone with a more recent criminal record. However, even a minor traffic violation can lead to increased premiums.
Where you live:
Insurers take into account many factors when setting rates – including population density, number of accidents and the age and type of cars on the road – so it’s important to know what kind of coverage is necessary in your area.
The type of car you drive:
Chevrolet Vs Ford vs Honda? That’s not really relevant to your rate. But if you typically drive a smaller car or a luxury vehicle, those factors might play into your rate too.
If you’re like most people, you probably don’t think too much about car insurance. You just pay your annual premium and that’s it. But what you may not know is that there are a number of different types of car insurance available, with monthly premiums ranging from $10 to $60 per month. So why pay more than necessary? If you’d like to learn more about the different types of car insurance and their monthly premiums, be sure to check out our guide.