Month to Month Car Insurance
If you are looking to conserve cash month to month car insurance is the way to go. Most car insurance companies will offer you a 6 month policy while some may be even suggest a 12 month policy. To get setup on month to month car insurance it is best to select a 6 month policy and make as low a down payment as possible. The easiest way to get setup for month to month car insurance is to request monthly payments be debited from your bank account. This way you will cut down on administrative fees as well as keep your down payment as low as possible.
No Down Payment Car Insurance
The down payment or deposit size for car insurance will vary based on the state you live in, your record of carrying car insurance and the car insurance company you are dealing with. Most companies will require you to sign up for a 6 month policy and require you to pay for the first month. There are some companies that will ask for 2 months down payment to cover the first and last month. Based on the state you live you may also see a request for a larger down payment or deposit if you have not continuously carried car insurance. Another area that can impact the size of your down payment is how you pay. If you decide to pay by direct debit from your bank account you often only need to pay 1 month, where if you pay by check your down payment likely will be larger. Below is a review of the size of down payments asked for from leading car insurance companies.
Monthly Fees & Down Payment Summary
How to Manage Month to Month Fees
Since car insurance companies have millions of customers they work with they prefer you pay them in one installment. It is easy for them and less expensive to process only 1 payment every 6 months as opposed to processing 6 payments per month over a 6 month policy. With this, you likely will see additional processing fees if you choose month to month insurance. Some of the fees are listed below and will typically be in the range of $1-$5 a month. The most cost effective method of monthly car insurance is to have your payments directly debited from your bank account. Paying by check or credit card will typically carry higher fees and you should try and avoid these payment methods. Ask to have your statements electronically mailed instead of paper statements mailed as this help avoid additional processing fees.
Monthly Car Insurance Saving Tips
Before signing up for monthly car insurance there are some simple steps to look out to save money on per month premiums.
Collision Deductible – If you have an older car consider increasing your deductible to lower your monthly car insurance. When getting a quote it should be easy to compare how much you save with a $1000 deductible as opposed to a $250 deductible.
Lower Monthly Mileage – The amount of miles you drive will impact your monthly premiums. Is there a way to keep your mileage down, for instance taking public transportation, sharing rides or use your bike or walk more frequently? Technology is making it much easier to track the mileage you drive and keeping mileage low is a great way to save money.
Keep Continuous Car Coverage – In some states it is important to keep your coverage going at all times. If you stop your coverage there is a chance your down payments and premiums will increase. If you have sold your car and will be renting or borrowing a car look at a Non-Owners policy in order to keep your car insurance coverage active.
Pay Directly From Checking Account – The processing fees generally will be $1 or less for each payment you make. In addition, your required down payment can be lower by avoiding check or credit card payments. Plan on scheduling an automatic payment; say the 5th of each month, so you don’t need to remember to make a payment each month
Is Monthly Car Insurance Always the Best Choice?
Paying car insurance on a per month basis is a good strategy if you are strapped for cash. However, if you can afford to pay your 6 month policy in one installment you often will be rewarded with a greater discount. In some situations, paying all at once can lead to savings as much as 10%. In addition, you will not need to worry about making payments being processed and you will avoid monthly processing fees.
Shopping For Month to Month Car Insurance
Shopping for monthly car insurance is an excellent way to keep your month to month premiums low. The easiest means to get the most quotes with investing little time is by using an independent web site. Typically, it will take less than 5 minutes of your time and you will receive multiple quotes back from entering your information once. To review what information will be asked when getting a quote and how it is used, look at our free quote overview. The site we suggest working with is Hometown quotes. Hometown works with many of the leading car insurance companies, such as State Farm, Allstate and Farmers. Once you have requested quotes you can compare their monthly car insurance programs along with their pricing to find the best month to month car insurance for you.
Month to Month Car Insurance Companies
Please note the below information is a sample of common types of month to month car insurance and size of down payments offered by leading car insurance companies. The information below, such as fees listed and down payments required, may vary depending on the state you live in as well as your past driving record and car insurance coverage. Be sure to inquire as to the exact details in the car insurance company you are working with.
State Farm – Offers 2 different options on a 6 month policy. The first is you can write a check for 2 months down payment and then pay 4 remaining monthly installments for a $3 processing fee. The second, which will help with a lower down payment, is to setup an automatic payment from your debit or credit card by paying the first month and then 5 monthly installments for a $1 processing fee each month.
Allstate – Standard is to sign up for a 6 month policy and pay the first 2 months and then 4 monthly installments for the remaining months. Your monthly payments can be done from credit card or check at $3.50 a payment or $1 a month from your savings or checking
Geico – The shortest policy offered is 6 months. You can make per month installments for each of the six months. Geico doesn’t like receiving checks. The preferred method is to pay out of your bank account for a $1 fee. A payment from your credit card will cost $5. To keep your down payment low avoid writing a check.
Progressive - Shortest policy is 6 months. They only require the first month as a down payment and you can pay the remaining in monthly installments. Progressive offers 3 ways to pay, directly from your bank at $1 or from your credit card or paying by check. The fees for the last 2 options will be between $3-5 depending on the state you live in.
Farmers – Farmers offers month to month car insurance. You can make per month installments from your debit or credit card with a $6 dollar fee.
Nationwide – Shortest policy offered is 6 months. Customers are allowed pay in monthly installments. If you mail a check there is a $6 processing fee while if you do an automatic withdrawal there are no fees.
Liberty Mutual – Only offer a 12 month policy. No fees for direct debit from bank account. Check or credit card processing fee will run between $20-25 per year.
Travelers Companies – 6 months is the shortest policy. Fees quoted were $1 for credit card, check or direct debit.
American Family – No credit card payments are accepted as they don’t want to keep this information on file for potential hackers. If you have statements mailed or a check processed there will be a monthly $2-3 processing fee.
USAA – Most common policy is for 6 months. Allows customers to pay monthly with no additional service fees for paying from a credit card, bank account or writing a check.