What Is a Monthly Car Insurance Policy?

If you are someone who drives only on a temporary basis, you might not want to go for the quarterly or yearly insurance policies in the market! Look for a cheap month to month car insurance!

A monthly car insurance policy is the payment of premium auto insurance on a monthly basis. Only a few insurance companies allow the optionality for a monthly payment basis, most others offer only three or six month coverage period to the least. The insurer takes account of factors like the place you drive, how you drive and mileage count etc. These factors will be taken into account precisely.

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Advantages of a One Month Car Insurance Policy

Here are 3 main benefits of cheap monthly car insurance.

  • Easier to Enrol and Switch

    Enrolling in a monthly auto insurance policy is a hassle-free process. You can easily make a switch to another insurer, as it does not require much paperwork.

  • More Room for Liquidity

    Most of the clients find it difficult to pay a large amount of money up front since they are not promised of other sudden expenses they are bound to pay. Month to month auto insurance policy reduces this financial burden.

  • Testing Different Insurers

    You can even test various insurers until you find the right policy. Then you can switch to one-year policy based upon your convenience.

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Things To Consider for Cheap Monthly Car Insurance

  1. Maintain a Clean Record: The lowest rates are offered to people who haven't made any traffic violations, license suspensions, or revocations. You will be seen as a potentially matured client.

  2. Possess No Past Claims: It is true that if you have done a claim in the recent past, the insurer will assume that you are probably going to claim another one sooner, especially if you have more than one claim. The chances of getting a lower insurance rate are low in this case.

  3. Have a Higher Credit Score: Most insurers take your credit score as a higher priority in pricing your policy. Have a credit score of 600 or higher. To have a good credit score, you should pay back loans and bills at the right time, limit number of credit applications and so on.

  4. Don't Delay in Paying Insurance Bills: If you delay in paying insurance bills, then the insurer will view you as a riskier customer and possibly increase the rate in the upcoming month.

  5. Never Drive Without Insurance or Do Illegal Things in Your Car: In this case, the insurer will require you to fill up a form called SR-22, which is also known as, Certificate of Financial Responsibility, to prove that you are a financially responsible person. If the insurer requires you to fill up an SR-22 form, most likely your insurance rates are bound to go higher.

  6. Have Only One Vehicle and Be Its Full Owner: The more vehicles you buy and drive, the more the claims will be. Also, if you have bought the car on loan, then it will lower your chances of getting the best insurance rates.

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More About 30 Day Car Insurance Cover

  • Most insurers will provide you with 1 month car insurance rather than offering the long-term insurance which would end up as a big payload at the end of the coverage. You should carefully analyse the ups and downs of car insurance for 30 days based upon your personal needs.
  • If you want to switch to another insurance company, or are going to relocate, or planning to purchase a different vehicle within the next few months, a monthly payment plan is the best option for you.
  • But if you are settling in for a long time, then the six-month policy is the ideal option for you. An even better deal is the one-year policy, where the insurer will offer you a huge discount. To save more on your month to month car insurance, adding multiple cars to a policy will extend the savings even further.

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