Should I Pay My Connecticut Auto Insurance Premiums in Monthly Installments?

Should I Pay My Connecticut Auto Insurance Premiums in Monthly Installments?

You know, you would think the fact that all 50 states now require you to carry auto insurance would mean that the process of buying said auto insurance would get simpler-and that Connecticut auto insurance shoppers wouldn't have to make nearly as many choices. Unfortunately, that just ain't the case. It seems like the more auto insurance companies there are coming into the market, the more complicated the process of buying that auto insurance manages to be.

And that includes deciding how you're going to pay for it!

When you buy a Connecticut auto insurance policy from any of the insurance companies currently doing business in the Northeast you're going to have a couple of options when it comes to making payment in full, and what choices you have are going to depend heavily on whether you bought your insurance in six month or twelve month installments.

One Lump Sum

One of the beautiful things about insurance policies (from a consumer's point of view) is that when they calculate what they're going to charge you for your coverage you get one full lump sum from the very beginning. That sum is what you owe for the full term of your coverage, and once it's paid it's paid. That's it. You're done!

There are some definite perks that go along with not having to write a check to your Connecticut auto insurance provider each month, not the least of which is not having to remember when your payments are due or how much each installment is going to be. And that's money back in your monthly budget, since it's already been paid and you don't have to worry about it.

Monthly Installments

Before you go running for your checkbook, take a second to consider the downside of paying your insurance in one payment-namely, that a full term of insurance usually costs $600 or more. If you've got that sitting around and you want to pay off your insurance that's great, but if you don't you're not doomed to months of driving uninsured while you save up enough money to cover the cost of your auto insurance policy.

How will you pay for your auto insurance?

Connecticut auto insurance companies also give you the chance to pay your premiums in monthly installments, which means they take the amount of money you owe for the term (either six months or a year) and break it into fairly even segments. (My own auto insurance payments usually stay within $10 one way or the other all year long.) You can pay those payments monthly, maintain your coverage and not have to worry about cleaning out your bank account-or saving up for the rest of the year to splurge again when your term renewal rolls around!

Do I Really Have to Choose?

Paying your insurance in one lump sum and then changing your mind doesn't happen very often (and I'm fairly certain by that point it would be too late) but what happens if you opt for monthly installments and then find yourself holding an extra $1,000? Should you pay off your auto insurance policy? Sure, if you want too. You can always pay off your policy, and since there's no interest charged on your auto insurance it isn't going to affect the amount you're going to pay or incur any special penalties.

When it comes to how you're going to get your insurance paid off your Connecticut auto insurance company doesn't care one way or another, as long as it gets done in the end (and before they cut off your coverage). How you're going to do it is entirely up to you.