The Cases In Which Monthly Car Insurance Costs Make Sense

Perhaps one of our least favorite but necessary things to do every month is pay bills. Some of these bills are consumption-based such as utilities, phone bills and rent/mortgage, while other bills, like the various forms of insurance, are preventative. People often confuse preventative with unneeded, or a waste of money. This couldn’t be further from the truth. In fact, the monthly car insurance cost on your finances isn’t really draining, it’s just an expense we don’t like paying for.

Car insurance, whether we like it or not, is a necessary part of life. Why? Well first off there’s the legalities associated with it: close to every state in the U.S. (49 out of 50) demands their motorists carry some form of car insurance. Secondly, for most people the question of if you’ll have to use your car insurance is more of a “when” than “if” scenario. After all, there are a total of six million car accidents a year in the U.S. alone. And thirdly? According to the Association for Safe International Road Travel (ASIRT), over 37,000 people die in traffic collisions every year, with 2.35 million sustaining injury. The statistics don’t lie: carrying a car insurance policy will protect you when you need it most.

The Pros of Making that Monthly Payment

No one plans to get in a car accident as they drive off to work or to pick up their partner from the airport. You can be five minutes away from home when a distracted driver rear-ends you at a red light. It’s at times like these that your auto insurance plan swoops in and saves you from financial ruin.

Now it probably comes as no surprise that some people choose to pay for their auto insurance plans upfront. It wasn’t all that long ago that when we bought an insurance package, we were required to pay for its services six months to a year in advance. This meant we had to scrimp and save six months to a year’s worth of insurance payments to make that single, costly bill. This can be pretty expensive for the driver who is just starting out at a new job, or for the single parent who needs that extra cash flow during the month to pay for Johnny’s new basketball shoes and Katie’s debate team trip to the capitol. It’s far easier to make monthly installments than it is to drop a lump sum of money. Because the truth is, we never know when we are going
to need that money.

With a majority of states now requiring auto insurance by law, most insurance agencies have updated their payment policy, allowing account holders to make smaller, more affordable monthly insurance payments. So now your payment isn’t just cost-effective, it’s convenient. How so? Because you know your monthly finances and what you can manage. This means you can more accurately estimate your monthly insurance cost without the fear of not having enough cash flow to make those rent or mortgage and utility payments.

In choosing to make monthly instead on annual car insurance payments, you are saving yourself from biting the bullet and spending a large sum of money you may not have in the bank. And if you don’t have the cash you need sitting in your account, charging the payment to your credit card just makes things that much more difficult. Your monthly car insurance cost can help you set up a monthly budget that saves you hundreds of dollars annually. If you’re just starting out and making your way paycheck to paycheck, paying for your car insurance policy in nice, affordable monthly installments will help you learn how to save money and budget accordingly.

You work hard earning your living, and your spending choices should reflect that. At CoverHound we set you up with credible and reliable insurance agencies who have your best interests in mind. See the monthly car insurance options available to you by visiting our auto insurance platform today.