Thursday, March 25, 2010

Should I or Shouldn't I

I wondering if I should go ahead an pay my car insurance in full for the next 6 months. It just doesn't make sense for me to pay a monthly installment as well as a $4.00 Premium Installment Charge.

Especially when the total cost of to renew my policy for the next six months is only $348.50!

Note.. I only have liability insurance on my car now that it is paid off.

I am thinking that I am just going to put the $348 on a credit card and pay it off before the bill gets here.

A question to those who own cars. Do you make a lump payment to your car insurance companies or do you make a monthly payment?

until next time, think prosperous thoughts



Aaren said...

I make lump sum payments every six months. I set aside $75/paycheck for my car, which covers insurance, personal property tax, registration, oil changes, and minor emergencies. Particularly because one six-month premium and my personal property tax are only one month apart, this is how I prevent the payments from becoming overwhelming for me.

Anonymous said...

I pay it in full (about 700) every 6 months. To accomplish this I take $58.33 out of my check and put it in a savings account. When the bill comes I have the money.

When I started off I didn't pay it in full because I had gotten rid of my credit cards and didn't have that kinda cash sitting around.

If you can't afford to pay the card off in a lump sum, you might just come out cheaper paying the fee vs. interest. (not sure, since I don't know the details)

YBP said...

thanks for the great comments guys!!! I think I am going to pay this 6 months in full with a credit card which I will pay off next month.

For the rest of the year I will save $100.00 a month in my ING Direct car fund account and use that to pay for the insurance, oil changes and other small emergencies.

eemusings said...

We pay car insurance annually on the Visa. It then gets paid off.

I do the same with contents insurance but quarterly, cause two big bills is just really hard to deal with. Eventually I'd like to be able to pay both once a year no problem...but the budget isn't quite there yet.

Chitown said...

Hmm...You just gave me an idea. My car is paid off and I pay for full coverage...I could save some money there. Plus, at a minimum I need to increase my deductible.

I pay monthly and I think there is a $3.00 fee.

Lioness said...

I'm with everyone else on this one. I set the money aside during the "off" period per pay and pay in bulk when due. This way I get to earn interest and for sure, avoid that extra fee that's charged for paying monthly. Who heard of such of thing? I keep this in my car fund. I keep enough in there for: an extra car payment (in case something happens one month), tickets, registration, maintenance, tolls, parking, gas; pretty much all thing car.