The car insurance premium is another word for your car insurance bill. It’s the amount you have to pay to keep your car insurance valid. Premiums are usually paid in six-month or annual increments, although many providers offer three-month or even one-month installment options.
How do you pay the premium for your vehicle insurance?
How you pay your car insurance premium depends on your provider, but the majority of car insurance companies allow customers to pay in the following ways:
- By mail in check
- Online through the insurance company’s website
- Online through the insurance company’s smartphone app
- Automatically by setting up automatic payment
When paying online, you will have the option to enter your credit or debit card information or link your checking account to transfer money. If your vehicle is insured by a company that provides banking services, such as USAA or State Farm, your insurance account can be accessed and verified using the same login information.
Most insurance companies require you to pay your premium every six or 12 months, although many offer monthly payment plans as well. Insurance companies also allow you to set up automatic payments so that money is drafted from your bank account each month and you don’t miss a payment. You may be able to get a special discount if you pay your entire annual premium up front or sign up for automatic payments.
How are vehicle insurance premiums calculated?
Now that you know what car insurance premiums are, let’s discuss how insurance companies decide how much you pay for coverage. There is no standard car insurance premium for all drivers. These costs are very personal, and each insurance company calculates car insurance premiums differently.
What is the cost of a car insurance premium?
Our team reviewed full coverage rate estimates for 35-year-old drivers with good credit and driving records from a variety of auto insurance companies. In general, we’ve found that annual premiums from national insurance companies range from about $1,000 to $2,500 and up.
You may find the different premiums depending on your situation. These estimates also do not affect discounts or other programs such as usage-based and pay-per-mile insurance.
What is the cost of a car insurance premium?
Our team reviewed full coverage rate estimates for 35-year-old drivers with good credit and driving records from a variety of auto insurance companies. In general, we’ve found that annual premiums from national insurance companies range from about $1,000 to $2,500 and up.
You may find the different premiums depending on your situation. These estimates also do not affect discounts or other programs such as usage-based and pay-per-mile insurance.
Find a lower car insurance premium
If you’re trying to lower your car insurance premiums, there are several strategies you can use:
- Drop Unnecessary Additional Coverage: Reducing coverage will reduce your premium. With older vehicles, it may not be beneficial to keep comprehensive insurance and collision insurance policies. The general rule is to reduce these types of coverage when your annual premium exceeds 10% of the total value of your vehicle. Keep in mind that you will need to maintain the minimum insurance requirements in your state to drive legally, so you should not underestimate bodily injury or property damage liability insurance or other required policies.
- Price Comparison: Shop and compare car insurance quotes from multiple providers. You may find that you can save a significant amount by switching insurance companies.
- Take a Driver Safety Training Course: Many insurance companies offer discounts for completing a state-approved driver safety program. These courses usually take six or eight hours, and some states require that insurance companies offer discounts if you complete one.
- Choose usage-based insurance, if it can benefit you: Many insurance companies offer usage-based discount programs.
- Gather your documents: If you have home insurance, you can usually get discounts on auto insurance by purchasing home and auto insurance policies from the same insurance company.
- Pay in advance: Paying your car insurance premium in advance will result in a discount with most insurance companies.