A lot of car owners neglect the importance of getting a car insurance plan. Getting a plan that’s perfect for your needs and your budget is important in maintaining a car. Aside from being protected from financial liability whenever there’s an accident involved, you’re also covered legally by the insurance company you contracted. Getting a car insurance plan that fits your needs is easy. There are several plans you can choose from depending on your financial capability. You may even find a car insurance plan without upfront payment required.
Insurance companies offer several payment plans to choose from. Here are 4 payment options you might want to consider in getting a car insurance plan:
- Full payment
Paying once, and in full is probably the best payment option for both parties. But of course it comes with a price. If you can afford it, a full payment will relieve you with a lot of things. You don’t have to worry about monthly bills. Also, full payments often include big discounts you can enjoy. You’re also ensured your policy is always in force and you wouldn’t encounter a lapse in coverage.
- Monthly payments
A lot of people prefer monthly payments because it allows them to budget their monthly income. Payments can be made electronically, via credit card, check, or via cash. If you have a checking account with your bank, issuing post-dated checks is also a good option. Cash payments are also more than welcome. Remember to be a responsible payer to avoid getting lapses in your coverage.
- Electronic funds transfer
If you don’t want to worry about your bills, you can file an auto-debit payment plan with your insurance agent. Just make sure that you’ll religiously put funds into your account. EFT or electronic funds transfer enables the insurance company to directly tap in your bank account and deduct your monthly payment automatically. This method is one of the most convenient ones. Charging your payments to your credit card also allows you to earn points every time you use them for payment.
- Annual, semi-annual, or quarterly
A lot of insurance companies still offer annual, semi-annual, and quarterly payment plans. These plans usually refer to the lock-in period of your insurance rates. An annual policy locks your payment rates for an entire year. A semi-annual policy means your rates are likely to change every six months.
Getting an insurance plan for you car is very important, whether you’re a new car owner or an experienced driver. A good insurance plan can help you a lot in times of need. It offers financial protection and it minimizes the cost of physical damage repairs. It protects you and your family from paying an insane amount of charges. You are also protected legally by the company you contracted. You might think that all your monthly payments are being put to waste especially when you have never filed a claim. But think of it as an extra layer of protection from the unforeseen events that may happen along the road.