We all do. Because every little bit of savings adds up.
You may not realize, however, that even greater savings opportunities exist in your insurance costs. You can experience instant savings by paying your entire premium at the beginning of the policy term instead of making scheduled installment payments. It is a much heftier up-front cost, but can reduce your insurance premiums by 5% to 10% and potentially add up to hundreds of dollars in savings over a policy period. While keeping the funds gives you access to that money and could generate interest, you will be spending significantly more on installment charges. When comparing car insurance costs on a paid-in-full policy versus one paid by installments, you are likely still looking at a difference of hundreds of dollars. Not only will you be impressed with the amount of money you can save, but the paid-in-full discount offers an additional layer of convenience, saving you the time, hassle, and postage costs by eliminating monthly bills.
Of course, paying your auto insurance does not always have to be an all-or-nothing situation. You may be able to place a down payment on your premium to reduce both the monthly payments and installment fees. Also, policy lengths may vary among carriers, so you could opt for a term of six months, making the paid-in-full discount much more attainable.
While paying in one lump sum will not work for everyone, it is the most effective way to save money on your insurance premiums without sacrificing coverage. If you are looking to save on your insurance costs, please contact us at 845-986-1177, and we will go over your payment options.