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Paying auto insurance annually vs monthly.

Discussion in 'The Okie Corral' started by Reyn, Apr 29, 2013.

  1. Reyn

    Reyn Times Up

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    I'm considering paying annually as opposed to monthly. Anyone do this? Pros- Cons? How much would you save by doing it annually?

    Right now on a monthly basis I'm paying around 150.00 a month on two vehicles full coverage.
     
    Last edited: Apr 29, 2013
  2. Python-Hunter

    Python-Hunter NRA Life Member

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    Never paid monthly. Always semi-annually!
     

  3. M2 Carbine

    M2 Carbine

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    The last couple companies I was with won't allow paying annually.

    I would pay annually but I have to pay 6 months.
    The 6 month pay gives the insurance companies the opportunity to raise your insurance every 6 months, instead of every 12 months.

    I can't think of any reason I would want to pay monthly.
     
    Last edited: Apr 29, 2013
  4. Reyn

    Reyn Times Up

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    Do you remember the savings you made doing it that way?
     
  5. okie

    okie GT Mayor

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    With GEICO they make me pay monthly:dunno:
     
  6. Python-Hunter

    Python-Hunter NRA Life Member

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    Since I never paid Monthly (wasn't an option), there is no way of calculating Savings! :wavey:
     
  7. cowboywannabe

    cowboywannabe you savvy?

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    i pay monthly because its how i have to budget my spending.... same as my mortgage.
     
  8. sappy13

    sappy13

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    Depends on yhr company. With geico I believe you save paying upfront. But I know with state farm there is no benefit. Can't remember what it was with USAA.

    Sent from my LG-P925 using Tapatalk 2
     
  9. captainstormy

    captainstormy

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    Depends on the company involved.

    I used to be with Geico and I saved something like 10-15% paying every six months.

    I switched to State Farm and there isn't any savings if I pay every six months instead of every month.
     
  10. JimmyN

    JimmyN

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    I have GEICO and I pay every six months. It's done with an auto debit, that may make a difference in payment setup.

    On 12/09/12 they debited $235.00 from my bank account. On 6/9/13 they'll hit me for another $235.00. Each time they debit they send me an email to download my new policy documents so I have current proof of insurance.

    There was a discount by paying bi-annually rather than monthly, it wasn't a lot, but it was a few dollars cheaper each month. They wouldn't let me pay annually.
     
  11. Breadman03

    Breadman03

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    Travelers charges something like $5 for a monthly payment, so paying semiannually saves me $50-$60 per year. (I never checked to see if I would get a service fee on the first payment of the period.)
     
  12. CAcop

    CAcop

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    Mine only allows every two months. Come to think of it I don't think I have ever been asked that option. Probably like the other posted mentioned they can raise your rates faster vs. waiting another year.
     
  13. fwm

    fwm

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    I have an account in which I keep several yearly 'accounts' in. State taxes, PP Taxes, Life insurance, Car insurance ..etc.

    I pay into the accounts bi-weekly with my paycheck, and then every year, pay the bills. I then transfer the accumulated interest into my saving account.
     
  14. JMS

    JMS 02

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    Mine (Encompass) offers yearly, every 6 months or monthly and doesn't charge any fees/interest for paying monthly.

    My last one (Travelers) charged a fee for paying monthly so I would just pay in one lump sum.
     
  15. Spiffums

    Spiffums I.C.P.

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    Mine has never been high enough to have to pay monthly.
     
  16. pipedreams

    pipedreams Member

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    Paying annually or semi annual usually will save one quite a bit. I pay my homeowners policy and three cars with one check once a year. If I was to pay monthly there would be a service fee for each monthly payment. Usually the service fee would be about five dollars for each monthly billing period. If I paid monthly I would get a separate bill for the cars and another for the homeowners each would include a service fee.
     
  17. Adjuster

    Adjuster

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    I have Allstate for auto insurance. I pay monthly. If I pay upfront for the policy term of 6 months there is a minimal savings of around $1.50 per month. I also receive a discount for having the payments auto deducted from my account.


    /
     
  18. yellolab

    yellolab

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    I hate having monthly bills so I pay mine every November for the year.
     
  19. jthrelf

    jthrelf

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    21st century - bi-annual payments... I think you save around $100 for the year.
     
  20. fnfalman

    fnfalman Chicks Dig It

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    State Farm only does it for six months. Progressive allows me to pay the full shebang up front and thusly saved a little bit.