Do I pay the insurance year or month?

Question:

insurance Andr�s car,
Is it a good idea to pay car insurance in advance or pay every month?
Juan Jose, Salt Lake City, UT
Answer:
Hi Juan Jos�,
For convenience and savings, it is preferable that pay in advance, it annually.

One reason is that you save a little money. For example, a policy for which you pay $ 100 per month, which would be $ 1,200 per year, would cost $ 1,000 if you will pay annually or in advance. Now, combine this with your budget and works great. Divide $ 1,000 that is the annual cost of the policy between 12 months and put on your budget $ 83 per month. Only the first year you have to disburse the amount in advance because then doing this, you always have the money.


If you realize, are $ 200 20% $ 1,000. If the agent you say, "Mr. Juan Jos�, I can give a 20% discount if you pay cash," would you? Of course! It is a good discount. Well, that's what happens when you pay the policy in advance.

Another way to save money on the insurance policy is handled with care, respecting speed limits and taking your car in order. (No, I do not want to look like your dad), what happens is that insurance policies increase every time you put an infringement or have an accident. This increase can be between 20 and 30%.

I understood from savings and increased him for many more years to pay insurance, I realized that the amount you save is very significant; Now I have many years of paying them annually. Besides, save a little money, it is very convenient because you have to be aware of another monthly payment and also do not increase the policy every six months. The goal is to lead a simple life and the less monthly payments have, the better. Since it is to meet the year of your policy, you begin to send reminders, and there is a good time to ask your insurance agent to quote you again to see if you can get cheaper with the same company or another.

The same advice applies to taxes on your house and all kinds of expenses that can be paid annually. If we can save a little money on something as simple as this, why not? The key to achieving these savings is discipline. So, whenever you can, save and simplifies to a life with less stress or, as I say, in financial peace.