Payment In Full Versus Monthly Installments

When purchasing Florida auto insurance you will have the option to either pay for the policy in full or make monthly payments with two exceptions. One is If you received a DUI you will be required to pay in full for a Florida FR44 auto insurance policy. The other is for some types of Florida SR22 car insurance policies. There are definitely pros and cons to paying in full or making installment payments and this article will discuss some of them in detail. 

You may prefer an annual payment plan for your policy under the following circumstances: 

You just purchased (or are leasing) a brand-new vehicle. If the vehicle is old or older there is a significant chance it may not be running in 6 months which would cause you to have to ask for a refund from the insurance company. With a manufactures warranty in effect and the vehicle being new you can be assured it will keep operating and the entire policy premium will be utilized. There could be other changes you make during the policy period that would generate a return of premium.  

You have the money to pay up front. Usually there is a “Paid in Full” discount which companies will apply at inception if you pay the entire premium in full. Keep in mind that everything adds up and this is a discount which should surely be taken advantage of. 

And finally if your income varies from month to month or paycheck to paycheck you may want to pay upfront. Often times especially with people who do freelance work such as landscaping or professional writing you don’t know exactly how much you will make and therefore creating and sticking to a budget can be difficult. If you pay your auto insurance in full for a year that’s one less bill you will have to worry about. 

When in doubt about whether to pay your auto insurance in full or by the month speak with an insurance agent. Florida Auto Plus Insurance is a family owned and operated business with over 25 years of experience in the field. We provide top class customer service at inception and for the life of your policy. Call us today for a fast-free rate quote and see why Florida Auto Plus insurance agency had received over 160 five star reviews from Google!. Cliff and Andy Schimek are standing by to assist you with any insurance questions or matters. (305)-278-1388