Paying my monthly car insurance is getting difficult for me every now and then. What options do I have to be able to keep up with them and not lose the insurance?

Annie

Detroit, MI

Budgeting money is really tough these days. Many people are not able to pay a lot of their bills. While car insurance is very important, a lot of people are having a hard time paying them. Insurance companies know of this fact so a lot of them devised various offering to their consumers that would provide more affordable insurance policies.

While it is probably more convenient to settle your car insurance ones a year, it could be a big pressure for some. Now companies offer monthly car insurance schemes where a years worth of protection is divided to be payable monthly. In some cases, insurance companies would put extra charge or interest for someone who opts to pay monthly. But there are also some companies who would not put any interest on such monthly car insurance schemes to make their products sell.

Now there are also policies that would only cover a short term period which usually last for about 28 days. It is just like purchasing monthly car insurance instead of traditional ones that covers a period of a year. This could be ideal for those who are always out of town and hardly ever use their cars on their travel.

With these options provided to consumers, everyone is given options that best suits for their budget.

Can you give me an idea on how much a monthly car insurance would cost? I’m thinking of getting my own insurance here in DC.

Anne,

Washington, DC

It’s hard to tell how much your monthly insurance would cost especially since I don’t know anything about your personal profile. A lot of factors determine your monthly premium. Your age, for one thing, is a factor that car companies consider important since there are certain age groups that are prone to getting into accidents or traffic violations. Gender is also important because it determines the risk level that a person is into in a specific period of time. For example, a male teenager would be deemed more risky than a female teenager because they like to drive more. However, a male adult may be deemed less risky than a female adult because they have more driving experience. A married driver may also have a lower risk level because he is considered to be safer due to his marital status (especially if he has a child of his own). Other factors considered in the premium computation are the members of the household, your home address and where you garage your car, the car’s model, and the miles driven with that car (total and average per year). Your driving record (previous violations if you have any) and credit history may also be taken into consideration, as well as your occupation and the place where you work.

But on the average, a yearly car insurance would cost around $900 to $1000. This would give you $75 to $83 per month.