Save money on insurance: pay quarterly

Paying your insurance premiums quarterly rather than monthly is an easy way to save money. When you choose to pay your insurance on a monthly basis, you are going to be paying a premium for doing this. This means that you are going to be paying more for your insurance than you would be if you were paying four times a year. The reason for this is that insurance companies charge you more for the convenience of being allowed to pay month to month.

The amount that you are going to have to pay to pay your insurance monthly is going to depend on the insurance company that you are using. Some of your bigger companies will charge you a nominal fee, such as $1 to $2 a month, whereas other insurance companies are going to charge you $10 or more a month for the convenience. If you are paying $10 a month this is going to cost you an extra $120 each year. In either case, the extra money that you are paying for the convenience of paying your car insurance monthly is money that you are wasting. This money can be better spent elsewhere, such as put into your savings account to help build your cash reserve.

Many people do not like to pay quarterly because they do not like to pay that much money all at one time. When you pay quarterly, you are going to be paying ¼ of your premium each time, so it is going to be a higher amount than what you would be paying month to month. The best thing that you can do to help pay your premiums is to set aside one-third of the payment each month, this way when the payment is due you will have the money that you need to pay your premiums.

For example, if your insurance premium is $1,200 for the year your insurance company will break that down into four different payments for you. When they break it down into four different payments, this means that you will be paying $300 four times a year or every three months. To make sure that you have enough money to pay the premium when it comes due you will need to set aside $100 each month.

If you were to pay the $1,200 premium on a month to month basis, your insurance company would first break that premium down into smaller payments. The amount that would be due for the insurance premium each month would be $100, but that is not going to include the fees that the insurance company charges to make these payments. If your insurance company charges you, $15 a month for the convenience of making monthly payments you will have to pay $115 each month for your insurance.

By eliminating that $15 fee each month, you can end up saving $180 a year on your insurance premiums. You also need to keep in mind that your premium for a month to month policy is going to be higher than your premium for quarterly payments, so the savings can be even greater. Many insurance companies reward their customers who pay on a quarterly or yearly basis with lower premiums. The $180 that you save each year can be put directly into your savings account to help build your cash reserve. Of course, you can save even more than that, it all depends on how much your insurance company charges you for the monthly fee and how much your insurance premiums are.