If you have wondered what it is like to pay monthly car insurance rates, there are some factors to consider before calling up your agent to find out if you can switch your policy over to a more frequent payment plan. The main issue to bear in mind throughout the process is that it most likely will not save you any money - in fact you will likely end up paying more over the life of your policy than if you decided to remain paying as you normally do, which is most likely every 6 months as a standard.
The reason for the higher overall cost is that while car insurance companies like receiving payments more often there are higher costs associated with processing more payments. Thus, they most often pass along these additional costs to you, the customer.
The fees, however, are not very high - it all depends on your insurer, but you can expect to pay between $2 and $10 per additional payment. So your month to month car insurance may only cost you $12 more than if you paid every 6 months, which is not too much to pay for the added convenience of lowering your premium amount.
Sometimes insurance companies approach their customers and request that they move to a monthly car insurance payment plan. This could be simply because the company wants the reassurance of receiving payments more often, or it could be because your risk profile has suddenly increased. If you are considering a new car purchase, it may be a good idea to consider skipping out on the sports car you were eyeing in favor of the more economical sedan model - the more costly and dangerous to drive your car is, the higher your rates will be, and the more likely your insurance agent will request that you pay more frequently.
