For every renewal or policy change, we'll send you a payment schedule so you can plan each payment. A car insurance premium is the amount of money you pay to your car insurance provider. Often used in reference to the car insurance bill itself, a premium is the amount you must pay to keep your car insurance coverage valid. Most insurers require you to pay your premium every six or 12 months, although many also offer month-to-month payment plans.
Most insurers allow you to set up automatic payments so that the money is taken out of your bank account every month and you never miss any payments. You may be able to get a premium discount if you pay the full annual premium in advance or if you sign up for automatic payment. An auto insurance quote, which is an estimate of how much you can pay for a policy, isn't the same as a premium, which is the amount you actually end up paying. It can also happen if you add another driver to your car insurance policy or if you receive a speeding ticket.
While car insurance rates are determined by methods that vary from company to company, your car insurance premium is generally based on personal details, such as the coverage you choose and the type of vehicle you drive. If you're looking for car insurance and want to find the lowest premium, be sure to compare car insurance quotes from several providers. You'll pay the lowest auto insurance premium if you only have the minimum coverage required in your state. Because car insurance premiums are highly personalized and are calculated differently by each provider, there is no standardized way to calculate car insurance premiums for every driver.
Common auto insurance discounts include a homeowner discount, a military discount, a multi-policy discount, and a full payment discount. Your car insurance premium is the amount you pay to an insurance provider in exchange for your coverage and that of the insured vehicle. That said, most auto insurance quotes contain estimates of the premium you're expected to pay if you buy coverage. In California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania, insurers cannot base insurance premiums on gender.
A full six-month premium means that the selected car insurance coverage will be in effect for six months after the premium is paid.