Can it be more beneficial to pay car insurance premiums in full with a credit card? How does spreading the premium works? Do I get charged interest and do I need to qualify first before I can pay by installment? Find answers to all these questions below.
Many companies like to receive their money upfront and therefore offer savings when you pay full at the start. Some companies may calculate premiums on the bases that you will want to spread the premium especially if they are saying that they will not charge for this facility. When you are offering to pay in full they may offer you savings. Here is more explanation on this topic and various auto insurance premium payment options.
Generally, companies charge interest for paying premiums in installment. You will see that the total payable is different for monthly and full payment. You may want to consider paying with credit card especially when you can pay the card balance within the next couple of months. Some cards will offer you up to two months interest free spending when you pay the full balance at the end.
In addition, keep in mind that most auto insurers check your credit score before they agree to payments of premium by installment. If you cannot pass this check you cannot spread your premium payments anyway.
When you are getting vehicle insurance quotes check the payment facilities as well. For some people this may not be important. However, you would want to know if you could pay by installment and the charges for doing so when you don’t have enough money to pay the full amount. Your choice of insurer may change depending on answers and facilities on offer. Some companies may offer you interest free 3 installments or a similar arrangement. You can find out about all your options in terms of price and payment if you get at least five automobile insurance quotations.
There are various auto insurance discounts and large savings to be achieved. Read those two articles and see if you can bring the costs of insuring your car down. There are plenty other topics discussed in this site and feel free to browse around.