The answer to the question “Is it necessary to have car insurance every year?” depends on a number of factors, including your budget and how much coverage you need. In some cases, a lower annual premium can save you money. However, you must remember that different insurance policies offer different coverage options, so it’s important to shop around at least once a year to find the best deal. You can even set your auto insurance payments to automatically come out every month or yearly. Make sure to pay your premium on time, however, as lapses can lead to penalties, fines, and even driving uninsured.
While it’s important to have auto insurance, it can also be expensive. Many states require that you obtain coverage, and the monthly premiums can add up quickly. Some insurance companies engage in price optimization, which means they will charge you more if you’ve never had a car accident. Fortunately, it’s possible to find affordable car insurance without sacrificing quality coverage. To save money on your monthly payments, shop around and see what’s on offer.
Many insurance companies offer monthly payment plans, which are generally less expensive than once-a-year payments. Monthly payment plans are particularly useful for drivers who don’t have the budget to make a large lump-sum payment at once. However, it’s worth noting that these plans typically have an installment fee, which is charged for processing 12 payments a year. These payment plans can also be easier to budget.