How Often Will an Auto Insurer Bill Me?

Posted in Auto Insurance

February 3rd, 2009

After months of saving, that snazzy new car in the dealer parking lot is just about ready to come home with you. The last remaining question in your financial planning is regarding your auto insurance. Your state legally mandates that you need a certain amount to make it legal for you to drive your vehicle on the road. In order to plan out a sound transportation budget, you need to know how often an auto insurance company will bill you.

Auto insurance providers typically bill insured consumers every six months to a year. The insurance companies prefer when consumers pay those premiums in full at the time of their billing cycle. For an additional fee, many times an insurer will allow the payment to be made in monthly installments. The fees for paying off the premium on a monthly basis can cost an extra $120-$200 annually, depending on your car insurance provider.

When managing your auto insurance bills, it is imperative that you stay on top of the paperwork. Many times that one bill is all you will get from your auto insurance provider, and if you miss a payment your policy can be quickly canceled. You will then be driving your car illegally.

The best way to handle monthly premium payments is by setting up an automatic payment plan through your bank account.