What kind of payment deals are on offer?
Sometimes, paying the whole premium up front is a real problem. Household budgets are really stretched these days - particularly as gas prices are going up so fast. Most of the auto insurance companies offer a range of payment options. They allow you to decide how often you want to pay. It can be monthly, quarterly or every six months. These offers always try to make it look convenient to you.
But there is a downside. When you spread your payments, the insurance company is actually giving you credit on the total bill. Some will charge you an arrangement fee - just a few extra dollars for agreeing to take your money in instalments, set up the payment schedule to monitor your account, and so on. Others will add in interest. Put the fee and the interest together and you can find yourself paying a lot more than you expected for that policy.
Use a calculator to multiply the instalments together to see what the total cost of the policy is. It can be surprising how the price has increased. It is often cheaper to put the full premium on your regular credit card than to pay monthly to an auto insurance company.
