Monthly Car Insurance

Should You Purchase Monthly Car Insurance?Are you looking to pay for an insurance cover for your vehicle? You can pay either monthly premiums or yearly premiums. The premiums are the cash payment you make periodically towards your insurance cover. Northwest Florida Insurance Group explains the benefits of monthly car insurance, pros and cons and if this is the right plan for you.

Below are guidelines to consider when choosing your monthly car insurance.

State or City

Premiums tend to vary between particular States and Cities. For example, the average expenditure for premiums in New Jersey State for the year 2013 was $1254.10 according to the National Association of Insurance Commissioners NAIC data.

Compare that to the US state of Idaho, whose average premiums was $553.38. That translates to $104.5 and $46.12 respectively per month. That is a big difference.

For cities, the city of Detroit was the most expensive for the year 2014; it had average premiums of $10,723. That is double compared to the next costliest city, New Orleans, which had average premiums of $4,310. That is $893.58 and $359.16 respectively per month.

Car Condition

Give the correct information, for example, any modifications to your automobile should be declared. The value of your vehicle will also be a determining factor on how much you are going to pay each month.

Advantages of Monthly Car Insurance

Budget

  • It allows you to plan your payments without feeling the burden at once and very low down payment as well.
  • You can sell your car without having to calculate the remaining monthly premiums into the selling price of your vehicle.

Disadvantages

1) Your car monthly premiums cost more compared to paying annually. Insurance providers add extra operation costs such as processing manpower to each payment.
2) The insurance company will fine you if you forget to make your payments on time.

Car Insurances Cover Levels:

1) Third party: Your insurance provider will only pay the damage to the person you have injured or whose property you have destroyed. Third party insurance cover does not pay for the owner’s injuries or the vehicle damage.

2) Third party theft and fire: It offers the same cover level as the third party but includes your car in case it is stolen or damaged.

3) Comprehensive Insurance: It covers the cost of any injury to you and your vehicle, even if the accident is self-inflicted. Keep in mind any happening to you or damage to your car, which is caused by another driver, will be paid by that driver’s insurance cover. According to the 2013 NAIC data, 78% of insured motorists purchased it in addition to third party insurance.

Conclusion

Your choice to pay monthly premiums for your car insurance will depend on your budget, your State of residence, and how long you plan to own your vehicle. With these factors in mind, you will be able to decide whether it is the best option for you or not.

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