car insurance tips
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Secrets To Finding Affordable Monthly Car Insurance Rates

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When you are looking to purchase auto insurance, one of the first things you look for before anything else is always the rate quote.

The low rate that most women find is based on the statistics issued by the governing agency that regulates insurance issuers.

car insurance tips
car insurance tips: pixabay

What a woman may not know about that first quoted price is that they can get it for far lower, if they are willing to take on monthly car insurance payments, rather than just paying the premium for the entire period up front.

Why Monthly Installments are a Better Option
Taking on monthly car insurance payments is not the only secret to purchasing a new policy at an affordable rate.

The majority of auto insurance purchasers see that low rate for the six month or yearly period and just go ahead and pay it, rather than actually looking to see how it breaks down per monthly payment.

The truth of it is that half-year or yearly premium actually includes more than the face value of the policy.

There are administrative costs added to it, policy fees and other initial fees that have nothing to do with the policy itself.

If you ask the agent to break it down over the coverage period month by month, you will see that it is far more affordable to pay in monthly installments rather than everything up front.

The first monthly payment is considered to be the initial down payment on the policy.

When you look at the breakdown within the quote, most often women will find that they are actually saving by paying monthly.

Some of the major companies are now offering small discounts to women as well as men, who use this affordable method and it really shows in the final payment.

More often than not, you will find that while you might have paid one set amount every month, that final payment of the period has actually been reduced by anywhere from 10 to 30%, just by taking on that monthly car insurance payment.

Electronic Payments Help you Save even More
There are even more ways to save when paying for insurance this way. If you sign up for electronic payments, for example, the cost goes down.

If you have the payment charged to a credit or debit card automatically on the due date, the cost goes down again.

If you are willing to take on a higher deductible for the life of the policy, the cost gets further reduced.

There are even discounts out there for multiple cars on the policy, certain professions like firefighters, police and medical personnel garner more discounts, and even the distance you drive daily will gain you more reductions in total premium costs.

Read: Save Money on Student Car Insurance

Regular Payments = Reduced Premiums
Yet another discount that is available for taking on monthly car insurance payments, especially for women, is actually based in part on your payment history, and the assumed risk statistics that favor a woman.

Any woman who pays her insurance premium payments regularly every month will find that the total premium price lowers every year she remains with that insurer.

The assumed risk for insuring women drivers is far lower than men, so the insurer will reward those drivers by lowering their premium over time.

It may be as less as 5% or as high as 15% lower each year, but it does happen.

Just goes to show that paying over time, instead of in one lump sum, does have its rewards.

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