Before we explain monthly car insurance plans, let’s dig into some background. Normal insurance coverage is locked in by a longer-term contract, usually 6 or 12 months. For a standard-length, normal insurance policy of this sort, you’ll typically make a regular monthly payment – i.e. your auto insurance premium. In some cases, insurance companies will charge you larger and less frequent car insurance payments, such as on a quarterly or biannual basis. This can actually work in your financial advantage. Even if it’s not required, paying for an entire year’s insurance coverage upfront may snag you a significant discount
Monthly car insurance plans, on the other hand, are all about flexibility. With a month to month auto insurance policy, you simply have to keep making your monthly payment to maintain your insurance coverage. For most people, breaking up a car insurance premium into small, bite-sized increments is much more financially manageable than making large, lump-sum payments once or twice per year.