Car insurance is expensive, but in all but two states, a mandatory fact of life. When you consider the fines and penalties that you could face by not having insurance, it becomes easier to work it into the tightest budget. But should you pay by the month or should you pay in longer increments? Which makes more sense for your budgetary needs?

Advantages of Paying an Average Monthly Car Insurance Bill

For some situations, a monthly car insurance bill may be the best suggestion. You might consider paying by the month an advantage if:

• You do not have the cash on hand to pay the full or half amount all at one time.
• You are potentially going to be having a change in situation within the next few months but less than six months in the future. For instance, if you know that you are going to be changing to a new age status, a new marital status or moving from one state to another in the next few months.
• You are only months away from paying off your vehicle or are considering a new car purchase.

If you are considering buying your insurance on a monthly basis, you must still make sure that you can actually afford it. If there are months where you can actually pay more, then do so. This can help on the months where the budget is a little tighter.

The Disadvantages of Paying an Average Monthly Car Insurance Bill

There are also some drawbacks to paying a monthly car insurance bill. These drawbacks can range from slight inconvenience to the increase in the monthly premiums that you have to pay. Drawbacks include:

You must remember to pay the bill each month. You can also set the payment to be made from your account automatically, meaning that you need to be sure that the money is there at the right time each month. If the money is not there, it can mean additional fees and penalties and may cause your insurance to lapse.

• Depending on the policy of the insurance agent and how you are paying the bill, paying each month can incur a number of fees and charges.
• Some months will have more bills than others. Special or unexpected expenses that come up can cause the budget to be stretched beyond capacity.

Saving Money on Your Insurance Upfront

To make sure that the amount that you pay on your average monthly car insurance bill is as low as possible, make sure that you are getting the best possible deal on your overall coverage. You can do this by:

• Shopping around for the best quotes and coverage before choosing a policy.
• Factoring in the cost per month when comparing prices from company to company.
• Making sure that you are getting every possible discount that you qualify for. These can include having more than one policy with the same company, having a certain type of car, having good credit and others.