Paying auto insurance annually vs monthly. [Archive] - Glock Talk

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Reyn
04-29-2013, 08:44
I'm considering paying annually as opposed to monthly. Anyone do this? Pros- Cons? How much would you save by doing it annually?

Right now on a monthly basis I'm paying around 150.00 a month on two vehicles full coverage.

Python-Hunter
04-29-2013, 08:46
Never paid monthly. Always semi-annually!

M2 Carbine
04-29-2013, 08:48
The last couple companies I was with won't allow paying annually.

I would pay annually but I have to pay 6 months.
The 6 month pay gives the insurance companies the opportunity to raise your insurance every 6 months, instead of every 12 months.

I can't think of any reason I would want to pay monthly.

Reyn
04-29-2013, 08:48
Never paid monthly. Always semi-annually!

Do you remember the savings you made doing it that way?

okie
04-29-2013, 08:51
With GEICO they make me pay monthly:dunno:

Python-Hunter
04-29-2013, 09:10
Do you remember the savings you made doing it that way?
Since I never paid Monthly (wasn't an option), there is no way of calculating Savings! :wavey:

cowboywannabe
04-29-2013, 09:12
i pay monthly because its how i have to budget my spending.... same as my mortgage.

sappy13
04-29-2013, 09:16
Depends on yhr company. With geico I believe you save paying upfront. But I know with state farm there is no benefit. Can't remember what it was with USAA.

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captainstormy
04-29-2013, 09:18
Depends on the company involved.

I used to be with Geico and I saved something like 10-15% paying every six months.

I switched to State Farm and there isn't any savings if I pay every six months instead of every month.

JimmyN
04-29-2013, 09:23
I have GEICO and I pay every six months. It's done with an auto debit, that may make a difference in payment setup.

On 12/09/12 they debited $235.00 from my bank account. On 6/9/13 they'll hit me for another $235.00. Each time they debit they send me an email to download my new policy documents so I have current proof of insurance.

There was a discount by paying bi-annually rather than monthly, it wasn't a lot, but it was a few dollars cheaper each month. They wouldn't let me pay annually.

Breadman03
04-29-2013, 09:55
Travelers charges something like $5 for a monthly payment, so paying semiannually saves me $50-$60 per year. (I never checked to see if I would get a service fee on the first payment of the period.)

CAcop
04-29-2013, 10:03
Mine only allows every two months. Come to think of it I don't think I have ever been asked that option. Probably like the other posted mentioned they can raise your rates faster vs. waiting another year.

fwm
04-29-2013, 10:12
I have an account in which I keep several yearly 'accounts' in. State taxes, PP Taxes, Life insurance, Car insurance ..etc.

I pay into the accounts bi-weekly with my paycheck, and then every year, pay the bills. I then transfer the accumulated interest into my saving account.

JMS
04-29-2013, 10:17
Mine (Encompass) offers yearly, every 6 months or monthly and doesn't charge any fees/interest for paying monthly.

My last one (Travelers) charged a fee for paying monthly so I would just pay in one lump sum.

Spiffums
04-29-2013, 10:22
Mine has never been high enough to have to pay monthly.

pipedreams
04-29-2013, 10:23
Paying annually or semi annual usually will save one quite a bit. I pay my homeowners policy and three cars with one check once a year. If I was to pay monthly there would be a service fee for each monthly payment. Usually the service fee would be about five dollars for each monthly billing period. If I paid monthly I would get a separate bill for the cars and another for the homeowners each would include a service fee.

Adjuster
04-29-2013, 10:37
I have Allstate for auto insurance. I pay monthly. If I pay upfront for the policy term of 6 months there is a minimal savings of around $1.50 per month. I also receive a discount for having the payments auto deducted from my account.


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yellolab
04-29-2013, 10:48
I hate having monthly bills so I pay mine every November for the year.

jthrelf
04-29-2013, 10:54
21st century - bi-annual payments... I think you save around $100 for the year.

fnfalman
04-29-2013, 11:49
State Farm only does it for six months. Progressive allows me to pay the full shebang up front and thusly saved a little bit.

SC Tiger
04-29-2013, 11:57
When I had USAA, they had Semi-Annual, Monthly and 4 payments over 6 months as options. The 4 payments over 6 months (bascially monthly for the first four months of the term) was the same cost as semi-annual. If you went monthly you added a little more to the total.

FullClip
04-29-2013, 12:02
I have paid my home/auto insurance on a once per year deal for about 20 years. Saves me a couple hundred bucks and having the two policies bundled together saved me a lot. (plus hitting 30 and getting rid of my lead right foot!:supergrin:)

WarCry
04-29-2013, 12:25
I'm considering paying annually as opposed to monthly. Anyone do this? Pros- Cons? How much would you save by doing it annually?

Right now on a monthly basis I'm paying around 150.00 a month on two vehicles full coverage.

Aside from the money issues, there are a few other pros to paying other-than monthly...

If you pay on a monthly basis, then (in most cases) you're paying RIGHT UP to your due date. If something happens that you're a few days late on your payment (never happens to folks, though, right? The world is perfect and nothing unexpected ever happens?), you could end up with a lapse in your coverage pretty easily.

GEICO has some policies that, if you want monthly, you HAVE to set up their auto-pay system. I don't know about other companies. GEICO also has 4-payment and 1-payment (6-month policies). In a lot of cases you can save $5-$10 a payment if you pay it every 6 months.

If you have the ability to do it, I don't really know of too many cons in paying 6-months at a time (most auto policies are 6-month, not annual, though there could be exceptions). Even if you want to change plans mid-policy, most will do pro-rated adjustments.

RustyL
04-29-2013, 13:58
Same here



I have Allstate for auto insurance. I pay monthly. If I pay upfront for the policy term of 6 months there is a minimal savings of around $1.50 per month. I also receive a discount for having the payments auto deducted from my account.


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FCastle88
04-29-2013, 14:11
I pay my car insurance every three months, only costs an extra $15/year. Figured it's worth it to have access to some extra money in the bank throughout the year. I pay my motorcycle insurance annually because Progressive doesn't do quarterly payments.

ChuteTheMall
04-29-2013, 14:21
It would save me only $8 per year if I switched.

I auto-deduct for 4 months out of every 6, I think of it as monthly but it's nice to skip a month here and there, like a little bonus out of the budget.

Kevinr20
04-29-2013, 14:21
Some companies give you an extra discount for paying in full. Most companies also have 6 month terms rather than annual

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